UB Community Development, a partner of Atmore-based United Bank, has received $65 million in New Market Tax Credit authority, which it will allocate to projects throughout its Alabama and Florida service area.
UB Community Development was the only Alabama-headquartered institution to receive the federal allotment. In three previous allocations, UBCD has received $185 million, which has supported more than $400 million in investments in its area.
The federal program is designed to encourage private investment in economically distressed communities. UBCD has been active in the program since it began.
Community Development Entities, like UBCD, use their authority to offer tax credits to investors in exchange for an equity investment into the eligible projects. These investments, in turn, help businesses and non-profits operating in distressed areas to receive better rates and terms and more flexible features than traditional market loans.
Its funding “has supported job growth through projects such as healthcare facilities, manufacturing, education, hospitality, non-profits, community centers, retail and grocery stores in food deserts,” UBCD says in a written statement.
“Ensuring access to capital is essential to sustaining and growing small businesses across our markets,” says Alex Jones, UBCD President. “Being awarded this allocation will afford UBCD the opportunity to continue our work in funding critical projects in low income communities in Alabama and Florida.”