Funds will be used for community investments that drive economic
development and job growth in lower-income communities
ST. LOUIS–(BUSINESS WIRE)–U.S. Bancorp Community Development Entity, LLC (USBCDE), the community
development arm of U.S. Bank, received $70 million in tax credit
allocations from the U.S. Department of Treasury to help address
persistent gaps in economic outcomes in lower-income communities. The
$70 million allocation is part of the $3.5 billion New Market Tax Credit
(NMTC) Program from the Treasury.
“U.S. Bank believes everyone deserves an opportunity to achieve
financial stability. The NMTCs provides a unique opportunity for us to
invest in economic development projects that make a difference in our
communities. We intend to commit a portion of this allocation to
projects in rural communities, plus we will create a small business loan
pool,” said Terra Neilson, USBCDE program manager. “We recognize that
job creation in rural areas can have a particularly significant economic
impact on a community. NMTCs are driving capital to historically
under-invested areas, and we welcome the opportunity to put the tax
credits to work to close the economic opportunity gap.”
The USBCDE was one of only 73 community development entities to receive
a share of the NMTC allocation authority package announced last week by
the Treasury’s Community Development Financial Institutions Fund. This
is USBCDE’s ninth allocation under the NMTC program, bringing its total
community investment across the country to $795 million. It has
partnered with other CDEs to raise more than $5 billion for nearly 150
community development initiatives in 43 states.
“U.S. Bank has a proven track record in these kinds of development
projects that help remove disparities,” said Zack Boyers, chief
executive officer of the U.S. Bancorp Community Development Corporation.
“When the private and public sectors work together, we can help close
the gap between people and possibilities and that has a meaningful and
lasting impact in our communities.”
Community Development Entities, like USBCDE, allocate tax credits to
projects to attract private sector investments in disadvantaged
communities that lack access to the long-term capital investment needed
to support and grow businesses and create jobs. The program is an
effective economic development tool to infuse up-front capital in areas
that need it most. According to the Department of the Treasury, NMTC
program awards have generated $8 of private investment for every $1
invested by the federal government. Since its inception, the NMTC
program has created or retained nearly 800,000 jobs and supported the
construction or rehab of more than 205 million square feet of
manufacturing, office and retail space in low-income communities across
the country.
Some of the diverse businesses and developments that USBCDE has financed
with its allocation awards include a warehouse/distribution center in
Caldwell, Idaho that distributes goods to convenience and small grocery
stores; a new manufacturing facility for tea and lemonade in Bay
Minette, Alabama; a mixed-use project – including commercial and retail
space, a federally qualified health center, grocery store and
residential units – in the East End neighborhood of Lexington, Kentucky;
and new classrooms, dance studios and an expanded theatre at the Center
of Creative Arts in St. Louis.
Learn more about the U.S. Bancorp Community Development Corporation
here: www.usbank.com/cdc
About U.S. Bank:
U.S. Bancorp, with 74,000 employees and $476 billion in assets as of
March 31, 2019, is the parent company of U.S. Bank, the fifth-largest
commercial bank in the United States. The Minneapolis-based bank blends
its relationship teams, branches and ATM network with mobile and online
tools that allow customers to bank how, when and where they prefer. U.S.
Bank is committed to serving its millions of retail, business, wealth
management, payment, commercial and corporate, and investment services
customers across the country and around the world as a trusted financial
partner, a commitment recognized by the Ethisphere Institute naming the
bank a 2019 World’s Most Ethical Company. Visit U.S. Bank at www.usbank.com
or follow on social media to stay up to date with company news.
About U.S. Bancorp Community Development Corporation:
With $29.5 billion in managed assets as of March 31, 2019, 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 and
market-rate homes, 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.
Contacts
Cassie Wagner, U.S. Bank
847.494.9113, [email protected]
