United Bankshares Secures $75 Million NMTC for Economic Development in Underserved Communities

United Bank Secures $75 Million NMTC Allocation to Boost Economic Development

United Bank announces its receipt of a $75 million allocation from the New Markets Tax Credit (NMTC) program, designed to enhance economic vitality in low-income communities across Alabama, Mississippi, and Northwest Florida. This allocation, awarded by the Department of the Treasury through United Bank’s Community Development Entity, UB Community Development, represents the bank's commitment to fostering economic growth in underserved regions. This marks the eighth NMTC allocation secured by United Bank, bringing its total to $500 million through the Community Development Financial Institutions (CDFI) Fund.

Alex Jones, Executive Vice President of United Bank and President of UB Community Development, emphasizes the significance of this funding in supporting small businesses, larger operating enterprises, and non-profits that are pivotal in job creation and the provision of essential community services, particularly in rural areas. The NMTC program, established by Congress in 2000, aims to stimulate private investment in economically distressed communities by offering a 39% federal tax credit over seven years. This initiative is crucial for banks like United Bank, which focus on community development and economic empowerment.

As a recognized CDFI, United Bank plays a vital role in directing financial products and services toward low-income markets. By securing the NMTC allocations, the bank not only enhances its capacity to finance businesses but also supports job creation in areas that need it most. With over $1 billion in assets and 19 branches primarily serving Southwest Alabama and Northwest Florida, United Bank’s efforts underscore its long-standing mission to uplift communities and provide sustainable economic opportunities.

In addition to its recent NMTC allocation, United Bank has a robust history of community involvement and development. The bank's commitment to fostering economic growth in low-income areas aligns with its strategic objectives and enhances its reputation as a socially responsible financial institution.

For more information about United Bank’s initiatives and services, visit their website at www.unitedbank.