New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) Program attracts private capital into low-income communities by awarding investors tax credits against their federal income tax in exchange for making investments in qualified projects.
UBCD uses the NMTC program to help fund small businesses and finance projects related to education, healthcare, manufacturing, hospitality, non-profits and community centers. The projects funded through UBCD’s NMTCs are creating jobs, providing goods and services, housing options, improving access to healthcare, and access to affordable healthy food.
2020 NMTC Projects
5 Standalone Projects
$65,000,000 Total NMTC Allocation
$145,000,000 NMTC Placed Capital Investment
$44,000,000 United Bank Loans
Coastal Growers Peanut Shelling Plant
UBCD placed $10 million of their New Markets Tax Credit (NMTC) allocation into Coastal Growers to construct a new peanut shelling facility in Atmore, Alabama.
UBCD, jointly with Baker Tilly, assisted in sourcing an additional $50 million in New Markets Tax Credit allocations from partner Community Development Entities including MuniStrategies, allocating $5 million, Rural Development Partners $15 million, Waveland $15 million, and National Impact Fund $15 million. Additionally, United Bank applied for and received a $40 million Business and Industry Loan Guarantee from USDA Rural Development to support the project financing.
Farmer-owned Coastal Growers currently works with 100 regional farms with over 200 employees and $4.8 million in total wages. Upon completion, they anticipate working with 130 regional farms supporting almost $8 million of wages.
The new 475,000-square-foot facility will source peanuts within a 200-mile radius from farms in Mississippi, Alabama, Georgia and Florida. The project will create 95 construction jobs and 130 permanent jobs with training and career advancement opportunities. The project anticipates shelling 140,000 tons of peanuts annually, which will be sold domestically and internationally.
The support of several entities, including the City of Atmore Industrial Development Board, the City of Atmore, the Alabama Farmers Association (ALFA), and Alabama’s Workforce Training Program (AIDT), made the project possible. Additional support includes a new rail transload facility which will service several nearby businesses in addition to Coastal Growers, and the potential future expansion of a blancher at the project site.
Community Facilities Lending
Adequate, up-to-date infrastructure and public services play a key role in a community’s quality of life.
However, in rural or economically stressed regions and communities, there often isn’t adequate funding to support the establishment, maintenance and replacement of essential public services and facilities. In addition to contributing to the quality of life for residents, these facilities and capabilities can be critical in helping communities attract businesses and much-needed employment to the communities.
2020 CFL Projects
The Community Facilities Lending (CFL) program gives UB Community Development (UBCD) the ability to offer long term — up to 35 years — fixed-rate financing to eligible municipal and non-profit borrowers.
$40,000,000 Total CFL Allocation
$12,000,000 Total CFL Transactions
12 Projects Closed
Atmore New Sanitation Facility $1,000,000
The City of Atmore’s 20 sanitation workers provide services for more than 9,200 residents. The new facility, which replaced a 60-year-old building, is a 6,000-square-foot pre-engineered metal building with new amenities like state-of-the-art ventilation and climate control work environment.
Satsuma Fire Truck $476,442
The Satsuma, Alabama Fire Department serves more than 7,000 Satsuma residents within 10 square miles. After the purchase of the new fire truck, the city will have four fire trucks in addition to new equipment for the new truck.
Creola City Hall $375,000
Funds will be used to purchase and renovate their leased 6,000-square-foot office facility. City Hall will have expanded capacity, allowing for individual office space for the Mayor, building inspector, city clerk and administrative staff. Additional amenities will include public computer access to Creola citizens and an added public works department.
Capital Magnet Fund
The Capital Magnet Fund (CMF) program is designed to attract private investment in affordable rental housing.
The UBCD team uses it’s CMF awards to provide supplemental funding with flexible terms to affordable housing projects that may not be feasible without this critical source of capital.
Since 2017, UBCD has provided funding to 32 projects across Alabama, Tennessee, and Georgia, representing almost 1,800 apartment homes built or preserved for families and senior adults.
2020 CMF Projects
$10,000,000 Awards since 2017
32 Total Projects
$300,000,000 Private Capital Invested
Graceway Apartments Fairhope, Alabama
Graceway Apartments, completed in Summer of 2020, is a 48-unit apartment community for senior adults ages 55 and above. Graceway features a community clubhouse with exercise room, computer center, and common area for gathering. There is also a walking trail and covered gazebo for use by the residents. The community is in close proximity to shopping and medical services.