US Treasury grants Truist $65m NMTC allocation to spur investment in underserved communities
Truist Community Development Enterprises (CDE), a subsidiary of US-based bank Truist Financial Corporation, has landed a $65 million New Markets Tax Credit (NMTC) allocation from the US Treasury to distribute to community development projects supporting underfunded and low-income communities across the country.
Truist lands $65 in New Markets Tax Credits
NMTCs typically come with favourable interest rates and non-traditional financial terms and conditions, helping to attract investment from private entities, banks and corporations.
Investors then leverage the NMTCs to finance development projects in underserved and low-income communities, often in the form of affordable housing, educational and healthcare initiatives and small business support, under the ultimate goal of stimulating economic growth and powering new job creation.
This announcement marks the twelfth time Truist CDE has received NMTCs from the Treasury’s Community Development Financial Institution (CDFI) Fund, and it has been granted more than $750 million in allocation authority to date.
Truist CDE is part of Truist Community Capital (TCC), a client-focused business founded as a result of the merger between BB&T Corporation and SunTrust in December 2019 that brought the wider Truist Financial Corporation into being.
While Truist CDE allocates the capital to investors, TCC works on a broader level to connect developers, local governments and non-profit organisations with tailored solutions to “take projects from concept to reality”.
Jamise Goodman, NMTC programme director for Truist CDE, says this year’s allocation will “help spark economic development and employment opportunities in low-to-moderate-income communities across the regions we serve”.
Kathy Farrell, head of commercial real estate at Truist, adds that the bank’s NMTC programme has supported underserved communities in the US with new healthcare facilities, educational opportunities and job creation that together “inspire and build better lives and communities”.
“This new round of allocation will build on the impactful investments Truist is making to enhance neighbourhoods, support residents and improve access to vital services,” she adds.
