UB Community Development LLC has provided $8 million in New Market Tax Credits to the city of Brewton and the Brewton Development Authority.
A community development partner of United Bank, UBCD says the funds will be used to support downtown redevelopment efforts to attract and encourage new projects. The plan includes the demolition and renovation of properties within the downtown area.
Provalus is one of the main companies to benefit from this project. The IT solutions and software development company expanded to Brewton in 2017, occupying a vacant space downtown. The company has invested $6.5 million in its Brewton center and had 200 employees earlier this year. Since then, it has continued to grow to the point that its current facility is at capacity. The redevelopment project will give the company the space it needs to expand in the existing facility.
“Watching Provalus grow and build in our downtown is nothing short of thrilling,” said Brewton Mayor Yank Lovelace. “There is nothing more exciting than seeing our strategy for economic development work, with jobs and future developments being the return on our investment. We have partnered with state and federal agencies, and local financial institutions to set the stage for a thriving downtown, and Provalus will be one of our biggest stars.”
The New Market Tax Credits program, administered by the U.S. Department of the Treasury Community Development Financial Institutions Fund, attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in Community Development Entities. These credits total 39 percent of the original investment amount and are claimed over a seven-year period.
UBCD President Alex Jones said, “It takes more than a single project to restore a downtown; it takes continued partnership and commitment. Together, in partnership with the city of Brewton and Brewton Development Authority, our mission of providing innovative funding solutions like New Market Tax Credits is stimulating downtown redevelopment, recruiting new business, converting unused space and improving the physical image of downtown.”
United Bank has been serving Atmore and the surrounding communities for 116 years. UB Community Development is working with community development partners in the fields of healthcare, education, manufacturing, public works, affordable housing and more.