ATMORE, Ala., July 15, 2020 /PRNewswire/ — UB Community Development, LLC (UBCD), a community development partner of United Bank, announced today the company has been awarded an allocation of $65 million in New Markets Tax Credits (NMTC). Through the NMTC program, the Community Development Financial Institution Fund (CDFI Fund) allocates tax credit authority to Community Development Entities (CDEs) via a highly competitive application process. UBCD was one of 73 CDEs awarded an allocation. This award marks our company’s third NMTC allocation, totaling $185 million that has been deployed into over $400 million in investments throughout Alabama and Florida communities.
The NMTC program helps economically distressed communities attract private investment capital. The tax credits help to fill financing gaps for projects in these areas by enabling investors to make larger investments. Since the program’s inception, $44 billion in NMTC funds have been invested in low-income communities. UBCD has been an active participant in placing their $120 million NMTC allocation as well as sourcing more than $150 million additional NMTC projects in qualifying census tracts in Alabama and Florida. Our experience in NMTC transactions has supported job growth through projects such as healthcare facilities, manufacturing, education, hospitality, non-profits, community centers, retail and grocery stores in food deserts.
CDEs, like UBCD, use their authority to offer tax credits to investors in exchange for an equity investment into the eligible projects. With these capital investments, UBCD facilitates loans and investments to businesses and non-profits operating in distressed areas that have better rates and terms and more flexible features than traditional market loans.
«Ensuring access to capital is essential to sustaining and growing small businesses across our markets,» Alex Jones, UBCD President, said. «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.»
In 2016, United Bancorporation of Alabama became the only CDE headquartered in Alabama to receive a New Markets Tax Credit allocation. This $65 million allocation was made possible because of United Bank’s designation as a Community Development Financial Institution (CDFI) and UBCD’s designation as a Community Development Entity (CDE) with a mission to bring economic viability to rural and low-to-moderate income areas. Since earning the CDFI designation in 2010, United Bank’s team has focused on creating products and services that positively impact consumers and small businesses. United Bank has been recognized by the FDIC for its work in these areas.
For more information about UB Community Development, or for help with planning your next funding project, contact Alex Jones, President, UB Community Development at (251) 446-6017 or email Alex.Jones@unitedbank.com. For more information about United Bank, please contact Tonya Lambert, SVP, Chief Marketing and Public Relations Officer, at (251) 446-6004 or email at Tonya.Lambert@unitedbank.com.
About United Bank
United Bank is a $742,977,301 financial institution that has enjoyed 116 years of continuous service to Atmore, Alabama and surrounding communities. United Bank has offices in Atmore, Brewton, East Brewton, Flomaton, Monroeville, Frisco City, Bay Minette, Foley, Lillian, Loxley, Magnolia Springs, Silverhill, Spanish Fort, Daphne, Summerdale and Semmes in Alabama. United Bank serves Santa Rosa County, Florida in Jay, Milton, and Pace. For more information about United Bank, please visit our website at www.UnitedBank.com. Member FDIC.
About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, affordable housing and more. For more information about UB Community Development, visit our website at www.UBCommunityDevelopment.com.
SOURCE UB Community Development