U.S. Bank Receives $65 Million in New Markets Tax Credit Allocations
15 Settembre 2021 - 4:48PM
Business Wire
Funds will
support projects focused on racial equity and closing the racial
wealth gap
USBCDE, LLC – U.S. Bank’s community development entity (CDE) –
received $65 million in tax credit allocations from the U.S.
Department of Treasury. The allocation is part of the federal
government’s $5 billion New Market Tax Credit (NMTC) program and is
intended to help address persistent gaps in economic outcomes in
lower-income communities.
USBCDE was one of 100 CDEs to receive a share of the NMTC
allocation authority package announced by the Treasury’s Community
Development Financial Institutions Fund (CDFI Fund). This is
USBCDE’s 11th allocation under the NMTC program, and the fourth
year in a row it has received the highest funding level granted.
Since its inception, USBCDE has invested more than $820 million in
communities across the country, resulting in the creation of more
than 47,000 jobs and 466 affordable housing units and increased the
capacity of people served at community facilities like schools and
health care centers by more than 1.1 million annually.
The NMTC program is an economic development tool that infuses
up-front capital in areas that need it most. CDEs allocate tax
credits to projects, attracting private investment capital that
helps grow businesses and create jobs in economically distressed
communities. According to the Department of the Treasury, NMTC
program awards generate more than $8 of private investment for
every $1 invested by the federal government.
“U.S. Bank is the most active NMTC investor in the country,
investing more than $6 billion nationwide in a wide variety of
economic development projects across the country,” said Zack
Boyers, president and CEO of U.S. Bancorp Community Development
Corporation, the tax credit and community investment subsidiary of
U.S. Bank. “Our USBCDE has gone a step further, making a strategic
commitment to use our own allocation on projects that support
racial equity. We believe by driving investment to communities of
color, where racial barriers have perpetuated inequitable outcomes,
we can help reduce the racial wealth gap.”
U.S. Bank’s focus on equity extends beyond just the projects it
supports through its NMTC allocation.
Fee income collected through these projects is also reinvested,
with USBCDE distributing it as grants to organizations with a
racial equity focus. Since 2013 it has given $5.4 million to
communities, including $1.1 million in grants to Black-led CDFIs
and the African American Alliance of CDFI CEOs in 2020 in the wake
of COVID-19 and civil unrest.
It also deploys some of its own allocation to emerging and
person of color-led CDEs through the intermediary CDE model – a
partnership that helps the CDE build a NMTC track record, offers an
opportunity to deploy this resource within their selected
community, and is a potential factor for success in gaining future
allocation.
“We’ll continue our work to support CDEs and we’re looking at it
in a more holistic way – including mentoring and financial and
technical assistance with the application process,” said Laura
Vowell, who directs business development for the bank’s NMTC
business and USBCDE, LLC.
Some of the projects USBCDE has financed with its allocation in
the past year include the renovation of the long-term home for Byrd
Barr Place, a Black-led nonprofit organization with a 56-year
history of providing safety-net services and combating racial
inequity in Seattle; working capital financing for a Black-owned
home healthcare service business in Memphis, Tennessee; working
capital financing for a non-profit Martin Luther King Jr. Community
Hospital in South Los Angeles, helping to meet the hospital’s needs
in response to the COVID-19 pandemic; and working capital for Hmong
American Partnership, an organization that expands educational and
job training programs for Hmong immigrants and refugees in St.
Paul, Minnesota.
USBCDE's intentional focus on racial equity supports U.S. Bank
Access Commitment, announced earlier this year. U.S. Bank Access
Commitment is our long-term approach to help build wealth while
redefining how the bank serves racially diverse communities and
providing more opportunities for diverse employees.
About U.S. Bancorp Community Development Corporation:
With $35.75 billion in tax credit equity committed as of July
31, 2021, U.S. Bancorp Community Development Corporation, a
subsidiary of U.S. Bank, provides innovative financing solutions
for community development projects across the country using state
and federally sponsored tax credit programs. USBCDC's commitments
provide capital investment to areas that need it the most and
contribute to the creation of new jobs, the rehabilitation of
historic buildings, the construction of needed affordable housing,
the development of renewable energy facilities, and the generation
of commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
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Cassie Wagner U.S. Bank cassie.wagner@usbank.com
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