Funds will be used for community investments
that drive business, grow jobs
ST. LOUIS--(BUSINESS WIRE)--Jun. 17, 2015--
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
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
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150617005992/en/
Source: U.S. Bancorp
U.S. Bank Corporate Communications
Shera Dalin, 314-335-3335