U.S. Bank Receives $55 Million in New Markets Tax Credit Allocation
29 September 2023 - 5:33PM
Business Wire
U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, and its
community development entity (CDE) – USBCDE, LLC – received $55
million of New Markets Tax Credit (NMTC) allocation from the U.S.
Department of Treasury. The allocation is part of the federal
government’s $5 billion NMTC program, which helps economically
distressed communities attract private investment capital.
USBCDE, LLC has now been awarded more than $1 billion in total
allocations, one of only three CDEs to do so. It is one of 102 CDEs
to receive a share of the NMTC allocation authority package
announced by the Treasury’s Community Development Financial
Institutions Fund (CDFI Fund). The bank received its first award in
2006; this is its 13th allocation under the NMTC program; and the
sixth year in a row it has received an award. Since its inception,
USBCDE has invested more than $910 million in 46 states plus D.C.,
helping create more than 59,000 jobs and increasing the capacity
served at community facilities like schools and health care centers
by more than 1.9 million people annually.
“These allocations of NMTCs are an important tool in helping to
catalyze growth and build wealth in communities that have
historically lacked access to capital,” said U.S. Bancorp Impact
Finance Managing Director of Community Finance Solutions Laura
Vowell. “We’re committed to investing in projects and with partners
that prioritize increasing access to capital and helping to close
the racial wealth gap.”
Recent projects that USBCDE has financed with its allocation
include:
- An expansion of the Lakota Tech High School serving members of
the Pine Ridge Reservation in South Dakota. This project has two
components: an addition to the existing building for additional
classroom space as well as the construction of a new stand-alone
automotive tech and welding training facility that will help Lakota
Tech students learn skills that employers seek.
- Development of the Children’s Village at Lotus House, a
multi-provider children’s resource center in Miami, serving women,
families and children experiencing homelessness.
- Development of a community-owned grocery store and community
space in Detroit, increasing access to healthy and sustainably
grown foods while building community ownership and
empowerment.
- The renovation of a long-vacant shopping center in Dellwood,
Missouri, into a vital resource for the predominantly Black
community that provides early childhood education, workforce
development, co-working space, a restaurant, and a bank.
Fee income collected through these projects is also reinvested.
Impact Finance distributes it as grants to organizations with a
racial equity focus and has provided $7.6 million to organizations
and communities since 2013.
In addition to being a vocal advocate for more equitable access
to capital in the NMTC industry, Impact Finance has provided
technical assistance, grant dollars and referrals for third-party
support to several person of color-led CDEs to assist in completing
the allocation application. USBCDE also deploys some of its own
allocation to emerging and person of color-led CDEs through the
intermediary CDE model – a partnership that helps the CDE build a
NMTC track record, offers an opportunity to deploy this resource
within their selected community and is a potential factor for
success in gaining future allocation.
Overall, about 20% of this year’s allocatees and allocation went
to CDEs led by persons of color.
“We’re happy to see with this round of allocations continued
improvement in representation, particularly an increased
representation in Native-led CDEs and investment in Native areas,”
Vowell said. “We’re excited for all of the allocatees and look
forward to helping support their success.”
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $681
billion in assets as of June 30, 2023, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. Union Bank, consisting
primarily of retail banking branches on the West Coast, joined U.S.
Bancorp in 2022. U.S. Bancorp has been recognized for its approach
to digital innovation, social responsibility, and customer service,
including being named one of the 2023 World’s Most Ethical
Companies. Learn more at usbank.com/about.
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Heather Peters heather.peters@usbank.com (865) 281-1977
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