UB Community Development Awarded $45 Million New Markets Tax Credit Allocation

Rhea-AI Summary

UB Community Development, a subsidiary of United Bancorporation of Alabama, has received a $45 million New Markets Tax Credit (NMTC) allocation from the U.S. Department of the Treasury. This award is part of a total of $315 million across four awards, aimed at enhancing economic vitality in low-income communities in Alabama and Florida. The NMTC program seeks to stimulate private investment and economic growth in underfunded areas, focusing on creating jobs and supporting essential services in these regions.

Positive

• Received $45 million NMTC allocation to stimulate economic growth.
• Supports job creation in low-income areas of Alabama and Florida.
• Contributes to a total of $315 million in funding for community development.

Negative

• None.

This is UB Community Development's fourth award, and in conjunction with United Bancorporation of Alabama, Inc.'s prior award represents a total of $315 million.

ATMORE, Ala., Nov. 3, 2022 /PRNewswire/ -- UB Community Development, a subsidiary of United Bancorporation of Alabama, Inc., and affiliate of United Bank, announced recently that the U.S. Department of the Treasury has awarded it a $45 million New Markets Tax Credit (NMTC) allocation. The award reflects United Bank and UBCD's commitment to enhancing the economic vitality of low-income communities in Alabama and Florida.

UB Community Development Awarded $45 Million New Markets Tax Credit Allocation

"UBCD is deeply appreciative of the CDFI Fund's continued support of our mission and acknowledgment of our capacity to work with our distressed communities," said Alex Jones, President of UBCD. "Our focus on funding businesses and non-profits that create quality jobs in low-income communities and essential community services such as healthcare in predominantly rural areas of Alabama and Florida is critical now as we recover from the pandemic and supply chain shortages amid the impact of inflation and the echoes of recession in our communities."

The New Markets Tax Credit program is designed to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the capital to support and grow businesses, create jobs and sustain healthy local economies.

About United Bancorporation of Alabama, Inc.

United Bancorporation of Alabama, Inc. (OTCQX: UBAB) is a $1.3 billion financial holding company that serves Southwest Alabama and Northwest Florida. United is a Community Development Financial Institution (CDFI), which recognizes its commitment to stimulating economic development in underserved communities. UB Community Development (UBCD) focuses on economic and community development through its New Markets Tax Credits, affordable housing, and community facilities programs. Member FDIC.

Contact Information:

Alex Jones
251-446-6017
alex.jones@unitedbank.com
unitedbank.com
ubcommunitydevelopment.com

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SOURCE United Bancorporation

FAQ

What is the significance of the $45 million New Markets Tax Credit allocation for UBAB?

The $45 million allocation enhances UBAB's capacity to invest in low-income communities, promoting economic growth and job creation.

How many total awards has UB Community Development received for community development?

UB Community Development has received a total of four awards, amounting to $315 million.

What communities will benefit from the NMTC allocation awarded to UB Community Development?

The NMTC allocation will benefit low-income communities in Alabama and Florida.

What is the main goal of the New Markets Tax Credit program?

The main goal is to stimulate private investment and economic growth in low-income urban and rural communities.