March 27, 2023

Southern Bancorp receives $45 million in New Markets Tax Credit score funds

Southern Bancorp introduced Monday (Nov. 7) it’s receiving $45 million within the newest spherical of New Markets Tax Credit score (NMTC) funding.

The cash comes from the U.S. Treasury Division’s Neighborhood Improvement Monetary Establishment (CDFI) Fund, which is awarding $5 billion in NMTC to 107 Neighborhood Improvement Entities, or CDEs, from throughout the nation.

These CDEs will in flip present loans, investments, or monetary counseling in low-income city and rural communities.

Southern Bancorp has acquired a complete of $100 million in NMTC awards over the earlier two years – all of which has been allotted for certified initiatives.

“We’re honored to obtain our third allocation of New Markets Tax Credit from the CDFI Fund,” mentioned Southern Bancorp CEO Darrin Williams. “Southern Bancorp has a confirmed monitor file of placing funding capital to work in locations that want it most, and we are going to use this award to assist initiatives designed to help severely distressed communities all through our service space.”

The New Markets Tax Credit score Program, established by Congress in December 2000, permits certified enterprise taxpayers to obtain a non-refundable tax credit score towards federal revenue taxes for making fairness investments in severely distressed communities.

The tax credit are offered to traders to boost capital for particular initiatives and are claimed over a seven-year interval. The CDE then makes use of the charges earned from the allocation to make additional investments in low-income communities.

“The NMTC program is a win-win-win state of affairs, as a result of whereas traders obtain a return on their capital, they and the certified enterprise in the end make a long-lasting financial affect in low-income, severely distressed communities,” mentioned Invoice Wright, Southern Bancorp’s West Area CEO and NMTC Program Director. “There’s a robust want for the sort of funding in our communities, and I’m proud to say we’ve put 100% of our earlier two years’ allocations to work all through our footprint, and we look ahead to rapidly placing the newest spherical to work inside these communities.”

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