U.S. Bank and American Express Partner on $74 Million Economic Growth Investment to Create Jobs in Alaska and Several Southern and Western States
SALT LAKE CITY--(American Express and U.S. Bank, the lead bank of U.S. Bancorp (NYSE: USB), have joined forces to spur business growth in economically challenged communities and provide jobs for at least 3,000 workers.)--
“Our shared mission of actively developing and supporting communities makes a partnership with American Express a natural fit”
U.S. Bancorp Community Development Corporation (USBCDC), a wholly-owned subsidiary of U.S. Bank, arranged and will manage a $74 million New Markets Tax Credit fund for American Express. The fund has provided capital for the construction and operation of 11 real estate developments and operating businesses throughout seven southern and western states including Alaska, Arizona, California, Louisiana, Oregon, Utah and Washington. The projects are anticipated to directly produce more than 1,600 construction jobs, increase the sustainability of 100 jobs and create more than 1,300 full-time positions.
According to Tracey Gunn Lowell, vice president of tax credit syndications for U.S. Bank, the projects vary from the construction of a community center and new school, to the upgrade of a manufacturing and industrial plant, to the development of a mixed-use commercial and retail center.
“We’re happy to partner with American Express, another leader in community development, to do our part to jump start economic growth through the creation of construction and full-time job opportunities,” said Gunn Lowell. “The company’s role with us as a socially conscious investor is truly helping to strengthen communities in need by investing in projects that trigger jobs now, as well as serve as catalysts for small business growth in the future.”
American Express Centurion Bank and American Express Bank, FSB, the company’s two Utah-based banks, have structured this innovative investment as part of their community reinvestment strategy. A leader in community development, American Express is partnering with U.S. Bank to address the economic challenges that face low- and moderate-income communities by stimulating small businesses, real estate development and job growth.
“One of our key goals is to revitalize communities that are struggling economically,” said Jane Shock, vice president of the American Express CCD. “Our investment with USBCDC will give small and mid-sized businesses and real estate developments in several distressed communities a chance to access capital and create jobs.”
USBCDC originated the New Markets Tax Credit investments in partnership with experienced Community Development Entity partners, which bridge investor equity into low-income communities. U.S. Bank is the nation’s most active New Markets Tax Credit investor, having committed more than $3.6 billion of equity in support of community development projects since the inception of the program in 2000.
“Our shared mission of actively developing and supporting communities makes a partnership with American Express a natural fit,” said Maria Bustria-Glickman, vice president of New Markets and Historic Tax Credit investments for U.S. Bank. “We’re grateful for this opportunity and for the efforts of our strong CDE partners for helping to make this possible.”
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at www.americanexpress.com and connect with us on www.facebook.com/americanexpress, www.twitter.com/americanexpress and www.youtube.com/americanexpress.
About U.S. Bank and U.S. Bancorp Community Development Corporation
U.S. Bancorp Community Development Corporation, a wholly-owned subsidiary of U.S. Bank, finances community development and affordable housing projects through the use of New Markets Tax Credits, Historic Tax Credits, Affordable Housing Tax Credits, and Investment Tax Credits in Renewable Energy. USBCDC is the most active New Markets Tax Credit investor in the country, investing billions of dollars nationwide in hundreds of transactions. These equity investments have provided much needed revitalization and new resources to communities throughout the country. Learn more at usbank.com. U.S. Bancorp is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.
About the New Markets Tax Credit Program
Enacted by Congress in 2000, the New Markets Tax Credit Program is administered by the U.S. Treasury Department’s Community Development Financial Institutions Fund. The NMTC Program encourages the investment of private investor capital in low-income communities in order to spur community and economic revitalization. The program allows tax-paying investors to receive a credit against federal income taxes for making equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. Through 2009, NMTC investments of $15.5 billion have generated a total of $50 billion in capital that has been invested in some of the nation’s most underserved communities. For more information, visit www.cdfifund.gov.
Posted: January 12, 2012