NEW YORK — Capital One Bank has received an award of $90 million in New Markets Tax Credits (NMTC) to support the bank’s lending and encourage investments in underserved communities in a number of states, including Mississippi.
The allocation was awarded through the U.S. Treasury Department’s Community Development Financial Institutions (CDFI) fund to Capital One Community Renewal Fund, LLC, a community development entity (CDE) created by Capital One, N.A. as part of the American Recovery and Reinvestment Act recently signed into law by President Obama.
Capital One Bank was one of 32 organizations in the U.S. selected to receive awards totaling $1.5 billion from the U.S. Treasury and is in addition to $3.5 billion in NMTC allocations awarded through the CDFI in 2008. Capital One is one of seven organizations that received an allocation of more than $75 million.
The allocation allows Capital One to continue its efforts to loan and invest at very favorable rates to companies who are developing property, setting up businesses and providing community services in low income communities where the bank does business.
“The New Market Tax Credit Program has been a tremendous success. The funds help us provide direct investments into our communities that are vital to the redevelopment of our neighborhoods. These investments then serve as a catalyst for change spurring job creation and community revitalization,” said Michael Slocum, executive vice president of commercial banking at Capital One Bank. “This additional allocation of funds will help further our efforts to support qualified businesses that want to invest in distressed neighborhoods in our expanded service area, including New York, New Jersey, Louisiana, Texas and Mississippi.”
The NMTC program stimulates economic and community development and job creation in low-income communities by attracting investment capital from the private sector. The program provides tax credits to investors who make qualified equity investments in privately managed investment vehicles called CDEs, which are required to invest the proceeds of the qualified investments in low-income communities.