U.S. Bank Receives $55 Million in New Markets Tax Credit Allocation
“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
Recent projects that USBCDE has financed with its allocation include:
An expansion of the
Lakota Tech High Schoolserving members of the Pine Ridge Reservationin 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
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.”