U.S. Bank Receives $55 Million in Tax Credit Allocation
June 17 2015 - 11:21AM
Business Wire
Funds will be used for
community investments that drive business, grow jobs
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 CorporationWith
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. BankU.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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150617005992/en/
U.S. Bank Corporate CommunicationsShera Dalin,
314-335-3335shera.dalin@usbank.com@usbank_news
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