United Bank Wins Sixth New Markets Tax Credit Allocation for $65 Million

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Sep 27, 2023, 07:00 ET

Award is Reflection of the Bank's Continued Commitment to Community and Economic Development

ATMORE, Ala., Sept. 27, 2023 /PRNewswire/ -- United Bank is pleased to announce it has been awarded a $65 million New Markets Tax Credit Allocation by the Department of the Treasury through UB Community Development (UBCD). The award is the result of United Bank's ongoing commitment to enhancing the economic vitality of low-income communities in Alabama and in Northwest Florida. Today's announcement marks the sixth allocation United Bank and UBCD have received from the CDFI Fund totaling $360 million for Alabama and Florida.

"We are deeply appreciative of the CDFI Fund's continued acknowledgment of our capacity to work with distressed communities in meeting their needs. Our focus on funding businesses and non-profits which create quality, accessible jobs and critical infrastructure in predominantly rural areas of Alabama and Florida, is particularly crucial now as we struggle to reclaim lost ground from the pandemic, supply chain issues and subsequent economic hurdles," said Alex Jones, Senior VP of United Bank and President of UBCD.

The New Markets Tax Credit was enacted by Congress in 2000 as a federal effort to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities which lack access to the capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The New Markets Tax Credit is a 39 percent federal tax credit, taken over seven years on investments made in those communities.

United Bank is a Community Development Financial Institution (CDFI). With a primary mission of promoting community development, offering financial products and services to low-income target markets, CDFIs promote economic growth by financing businesses, creating jobs and rebuilding neighborhoods. United Bank earned its designation by going above and beyond traditional community involvement to include expanded financial literacy projects, enhanced credit building and homebuyer initiatives, and the creation of small business lending and support programs

About United Bank: United Bank is a $1 billion plus financial institution, founded in 1904. United Bank has 19 branch offices that primarily serve four counties in Southwest Alabama and Northwest Florida. United Bank is an Equal Opportunity Provider. For more information about United Bank and UB Community Development please visit our website at www.unitedbank.com or www.ubcommunitydevelopment.com. Member FDIC.

SOURCE United Bancorporation