UB Community Development LLC, a community development partner of United Bank, has been awarded a $65 million New Markets Tax Credit allocation from the U.S. Department of the Treasury through the Community Development Financial Institution Fund.
The award is the result of United Bank’s commitment to enhancing the economic vitality of low-income communities in Alabama and Northwest Florida. This is the fourth allocation UB Community Development has received. The previous awards have totaled $185 million that have gone into projects in Alabama and Florida.
“At this critical time in Alabama and Florida’s economic recovery, UB Community Development is deeply appreciative of the CDFI Fund’s award of NMTCs to fund business loans in low-income communities in predominantly rural areas,” said Alex Jones, president of UB Community Development.
The allocation was made possible because of United Bank’s designation as a Community Development Financial Institution and UBCD’s designation as a Community Development Entity with a mission to bring economic vitality to rural and low-to-moderate income areas.
The New Market Tax Credit was enacted by Congress in 2000 as a federal effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities. It is a 39% federal tax credit, taken over seven years on investments made in economically distressed communities.
For more information on UB Community Development, see Business Alabama’s story here.