TowneBank Establishes Program to Help Organizations with New Market Tax Credits
March 16, 2010
Hampton Roads-based TowneBank is asking businesses, non-profits and other organizations across Virginia and northeastern North Carolina to contact them to learn about opportunities for tax credit financing if they are interested in programs to benefit underserved populations.
Towne is compiling a list of prospective projects to coincide with an announcement that it has formed a new community development entity, the Towne New Markets CDE
, which will enable it to apply for a 2010 allocation of New Market Tax Credits (NMTC) from the U.S. Treasury Department.
Since the inception of the program in 2000, $26 billion in NMTCs have been allocated to CDEs to be deployed to low-income areas throughout the country by creating sources of private capital to supplement standard financing. They have been powerful tools to spur development in a full range of businesses, as well as to create jobs, revitalize communities, and enhance the tax base.
The Towne New Markets CDE
will primarily target medically underserved areas, the emerging technology sector and charter schools in low income communities throughout the Commonwealth of Virginia and northeastern North Carolina. “The application for NMTC allocations is competitive, but we believe that TowneBank’s track record, our business and capitalization strategies, as well as our talented board and our focus areas provide us with a good chance to receive an allocation,” says Ute Heidenreich, president, Towne New Markets CDE, Inc.
To apply for the credits, Heidenreich says Towne New Markets CDE is inviting businesses and organizations, in need of funding to serve targeted populations, to contact her. Local governments, economic development entities, foundations, or other agencies that are aware of such initiatives, are also encouraged to do so. “We want to develop a pipeline of worthy projects that might need financing and let them know how the NMTC program can benefit them,” says Heidenreich. Interested parties can reach Heidenreich at 757.628.6364 or by email at firstname.lastname@example.org.