ST. LOUIS--(BUSINESS WIRE)--The U.S. Department of the Treasury awarded U.S. Bank’s community development entity, USBCDE LLC, the authority to raise $55 million in financing for low-income communities.
The award is part of a $3.5 billion New Markets Tax Credit (NMTC) allocation authority package announced this week by the Treasury’s Community Development Financial Institutions Fund. USBCDE is one of only 76 community development entities among 263 applicants that received allocation authority.
CDEs use allocation authority to attract private sector investments in disadvantaged communities that lack access to the long-term investment needed to support and grow businesses and create jobs. The program is an efficient and effective mechanism for infusing up-front capital in areas that need it most.
“This award of New Markets Tax credit authority will help us provide much needed gap financing to businesses in disadvantaged communities across the nation,” said Matt Philpott, senior vice president of U.S. Bancorp Community Development Corporation, the community investment subsidiary of U.S. Bank. “NMTCs have become a valuable resource for targeted job creation and generating business activity in hard-hit communities. We are grateful for the opportunity to put the tax credit to work, transforming communities and enriching lives.”
In addition to being an efficient tool for driving capital to underserved markets, the program also spurs economic development. Since its inception, the NMTC program has created or retained nearly 600,000 jobs and supported the construction of more than 160 million square feet of manufacturing, office and retail space in low-income communities across the country.
Prior to this award, USBCDE received six allocations totaling $600 million, 99% of which have been utilized. To date, USBCDE has partnered with 69 other CDEs to raise more than $2 billion for nearly 100 community development initiatives in 36 states.
Some of the diverse businesses and developments that USBCDE has financed with its allocation awards include soybean processor AG Processing Inc. of Dawson, Minn.; the nation’s first environmentally friendly electronics waste recycling center (in Osceola, Ark.); Evergreen Cooperative Laundry in Cleveland, Ohio; and the open-air commercial marketplace Mercado San Augustin in Tucson, Ariz.
About U.S. Bancorp Community Development Corporation
With nearly $14.5 billion in managed assets as of March 31, 2015, 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 have contributed 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.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $410 billion in assets as of March 31, 2015, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The company operates 3,176 banking offices in 25 states and 5,022 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.