Treasury Dept. and Congressman Clay Announce $135 Million in New Market Tax Credits to Create Jobs, Provide Small Business Capital and Strengthen Neighborhoods in St. Louis Region
FOR IMMEDIATE RELEASE: April 24, 2013
MEDIA CONTACT: STEVEN ENGELHARDT (314) 504-4029
Treasury Dept. and Congressman Clay Announce $135 Million in New Market Tax Credits to Create Jobs, Provide Small Business Capital and Strengthen Neighborhoods in St. Louis Region
St. Louis Development Corporation, US Bank, Enterprise Bank Are Winners in National Competition
-Washington, DC – As part of a $3.5 billion national investment to grow jobs and revive struggling neighborhoods, the U.S. Treasury Department and Congressman Wm. Lacy Clay (D) Missouri, announced today that three St. Louis financial & development entities are among 85 recipients nation-wide who have been selected to receive New Market Tax Credit funding.
“This is tremendous news for the entire St. Louis region, said the Congressman, who is a senior Member of the U.S. House Financial Services Committee. “The New Market Tax credits are a powerful tool to helpolder urban communities like ours. These federal tax credits will help developers and financial entities who are working to build up economically distressed neighborhoods by encouraging private sector investment that creates jobs. New Market Tax Credits provide gap funding to help finance difficult projects in parts of our region that have not seen new investment in decades. I want to thank President Obama and Secretary Lew for being so responsive to my efforts to win this funding for the St. Louis region, and I want to congratulate US Bank, the St. Louis Development Corporation and Enterprise Bank.
Congressman Clay is proud to announce these awardees for
the New Market Tax Credit program in the St. Louis region:
US Bank Community Development Entity, LLC: $65 million
US Bank will use its New Market Tax Credit Allocation to provide below market equity and debt products to real estate projects and operating businesses that create quantifiable, meaningful and catalytic outcomes for low income communities. USCDE intends to offer equity, senior debt, and/or subordinated debt.
Enterprise Bank (Enterprise Financial CDE, LLC): $40 million
Enterprise Financial CDE, LLC (EFCDE) will use its New Market Tax Credit Allocation for investments in operating businesses and targeted real estate investments in need of patient capital. EFCDE will only select highest impact businesses that can demonstrate the ability to transform low-income communities by providing quality jobs and goods and services to its residents. The CDE intends to offer equity, equity equivalent terms and conditions, senior debt, and/or subordinated debt.
St. Louis Development Corporation: $30 million
St. Louis Development Corporation will use its New Market Tax Credit allocation to provide flexible loans, and in some cases equity, to real estate and operating businesses. The STLCDE intends to offer equity, senior debt, and/or subordinated debt.
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