U.S. Bank Receives $65 Million in Tax Credit Allocations
July 21 2020 - 8:00AM
Business Wire
Funds will be used for community investments
that drive economic development and job growth in lower-income
communities
U.S. Bancorp Community Development Entity, LLC (USBCDE, LLC),
the community development arm of U.S. Bank, received $65 million in
tax credit allocations from the U.S. Department of Treasury to help
address persistent gaps in economic outcomes in lower-income
communities. The $65 million allocation is part of the more than
$3.5 billion New Market Tax Credit (NMTC) program from the
Treasury.
“With this allocation, we’ve maintained our commitment to
investing in projects that erode the racial wealth divide, while
also focusing on building relationships and a pipeline of projects
in rural communities of color,” said Terra Neilson, USBCDE program
manager. “Rural Latino, Native American and Black communities have
a history of under-investment. Through tax credits, we can drive
funding and job creation where it’s needed most and help close the
economic opportunity gap.”
The USBCDE was one of only 76 community development entities to
receive a share of the NMTC allocation authority package announced
last week by the Treasury’s Community Development Financial
Institutions Fund. This is USBCDE’s 10th allocation under the NMTC
program, and the second year in a row it’s received among the
highest amount of funding granted. Since its inception, USBCDE has
invested more than $760 million in communities across the country.
It’s also partnered with other CDEs to raise more than $5 billion
for nearly 160 community development initiatives in 43 states.
Community Development Entities, like USBCDE, allocate tax
credits to projects to attract private sector investments in
disadvantaged communities that lack access to the long-term capital
investment needed to support and grow businesses and create jobs.
The program is an effective economic development tool to infuse
up-front capital in areas that need it most. According to the
Department of the Treasury, NMTC program awards generate more than
$8 of private investment for every $1 invested by the federal
government.
Some of the diverse projects USBCDE has financed with its
allocation awards in the past year include a new state-of-the-art
Boys & Girls Club in downtown Orlando; the Oglala Lakota Career
and Technical Education School, the first ever brick-and-mortar
high school on the Pine Ridge Reservation in South Dakota; an
expansion of Latino-owned Mission Foods, a tortilla manufacturing
plant adding jobs in Grand Prairie, Texas; and the Tate, Etienne,
Prevost Center, which rehabs the former McDonogh 19 School — one of
two schools first integrated in New Orleans on Nov. 14, 1960 -—
into a museum/center focused on desegregation, civil rights, and
restorative justice, plus affordable housing for seniors on the
upper floors.
USBCDE also announced the addition of four new members to its
advisory board, which reviews each deal in partnership with the
bank’s NMTC team, ensuring alignment with its impact strategy. The
new members include:
- Dakota Cole, Secretary of Treasury of The Chickasaw
Nation; in addition to overseeing payroll for 11,000 tribal
employees, $200 million in annual federal awards, and $3.5 billion
in assets, he is Managing Director for Chickasaw Nation Community
Development Endeavor, LLC, a nationally certified community
development entity.
- Phil Glynn, president, Travois, a CDE that provides
financing, development consulting and architectural services to
Native communities coast-to-coast. Since 1995, Travois has brought
$1.4 billion of financing to affordable housing, infrastructure and
community development. This has resulted in over 5,000 new homes
and 5,000 new jobs in American Indian, Alaska Native and Native
Hawaiian communities.
- Jose Martinez, President of Prestamos, a CDFI supporting
Latino-owned businesses and low-income communities in Arizona,
Nevada, New Mexico, Texas and California; and executive vice
president of Economic Development for Chicanos Por La Causa, a
Latino-based Community Development Corporation.
- Esther Shin, MSW, President, Urban Strategies; her
expertise spans the spectrum of community transformation activities
that range from resource development to community engagement to
program development and evaluation; she has led or supported
securing 11 Choice Neighborhood Implementation grants.
Learn more about the U.S. Bancorp Community Development
Corporation here: www.usbank.com/cdc.
About U.S. Bancorp Community Development Corporation:
With $33.2 billion in tax credit equity committed as of June 30,
2020, 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 contribute 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200721005193/en/
Cassie Wagner, U.S. Bank 847.494.9113,
cassie.wagner@usbank.com
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