ST. LOUIS--(BUSINESS WIRE)--June 1, 2006--St. Louis based U.S.
Bancorp Community Development Corporation (USBCDC) has received a $135
million New Market Tax Credit allocation award from the U.S.
Treasury's Community Development Financial Institutions (CDFI) Fund.
With this award, USBCDC will provide equity, equity-like debt and
favorable loan rates and terms to for-profit and non-profit developers
for the development and rehabilitation of real estate, including
office, industrial, retail, mixed-use, and community facilities.
Kathy Bader, chairman of U.S. Bancorp Community Development
Corporation, said, "We are the largest New Market Tax Credit investor
in the country because we believe in the economic and social benefits
of this program. In many economically disadvantaged areas, it has been
the impetus to get America to work, revitalizing factories, creating
construction jobs and spurring small business."
Zack Boyers, senior vice president of U.S. Bancorp Community
Development Corporation added, "This program has only been in effect
for five years, but we can already point to several NMTC developments
nationwide that sparked a return of viable urban neighborhoods where
for years, many feared to tread. It has worked equally well in rural
areas where the NMTC incentive helped a business to remain competitive
by retooling so that it could continue to provide the jobs needed to
keep the community intact."
With each project it undertakes, U.S. Bank will be able to offer
construction financing leading to permanent financing as well as
highly flexible capital products to maximize the NMTC benefit to the
qualifying borrowers and investees.
This allocation, as well as a $60 million NMTC award to St. Louis
based developer McCormack Baron, is part of a $4.1 billion NMTC
package announced by the U.S. Treasury. The allocation awards included
$600 million allocated specifically for the redevelopment of the
Hurricane Katrina Gulf Opportunity Zone (GO Zone). Nationally, 63
organizations were selected from the 254 that applied. The NMTC
program permits taxpayers to receive a credit against Federal income
taxes for making qualified equity investments in designated Community
Development Entities (CDEs). Substantially all of the qualified equity
investments must in turn be used by the CDE to provide investments in
low-income communities.
About U.S. Bancorp's Community Development Corporation
With assets of nearly $2 billion, U.S. Bancorp's Community
Development Corporation (USBCDC) is one of the largest New Market Tax
Credit (NMTC) investors in the country. It also makes equity
investments in low-income housing and historic tax credits. Both are
subsidiaries of U.S. Bancorp (NYSE:USB), the sixth largest financial
holding company in the United States, with assets of $210 billion. The
Company operates 2,430 banking offices and 4,941 ATMs, and provides a
comprehensive line of banking, brokerage, insurance, investment,
mortgage, trust and payment services and products to consumers,
businesses and institutions. U.S. Bancorp is the parent company of
U.S. Bank. For further information, visit www.usbank.com.
CONTACT: U.S. Bancorp
Media Relations
Lisa Clark, 608-877-7517
Pager 888-437-8620
lisa.clark2@usbank.com
SOURCE: U.S. Bancorp Community Development Corporation
