United Bankshares Secures $75M NMTC for Economic Growth in Low-Income Communities

United Bank Secures $75 Million NMTC Allocation to Boost Economic Growth in Low-Income Communities

United Bank, a financial institution with deep roots in the southern U.S., announces a significant development in its commitment to community enhancement. The bank secures a $75 million allocation through the New Markets Tax Credit (NMTC) program from the Department of the Treasury via its Community Development Entity, UB Community Development. This award, which marks the eighth NMTC allocation for United Bank, underscores its ongoing mission to invigorate economic activity in low-income areas across Alabama, Mississippi, and Northwest Florida. With this latest allocation, the total NMTC awards received by the bank and its community development entity reach an impressive $500 million, demonstrating a sustained effort to address economic disparities in these regions.

The NMTC program, initiated by Congress in 2000, is designed to stimulate investment and economic growth in distressed urban and rural communities. By offering investors a 39% federal tax credit over seven years, the program incentivizes financing for businesses and nonprofits that create jobs and provide essential services. Alex Jones, Executive Vice President of United Bank and President of UB Community Development, expresses gratitude for the support received from the CDFI Fund, emphasizing the organization's dedication to funding initiatives that foster job creation and community welfare, particularly in rural areas. This focus aligns seamlessly with United Bank's broader mission as a recognized Community Development Financial Institution (CDFI), where the provision of financial products and services targets low-income markets.

United Bank's commitment to community development is evident in its operations, which include more than 19 branches primarily serving Southwest Alabama and Northwest Florida. Founded in 1904, the bank has grown its assets to over $1 billion, reflecting its stability and dedication to serving underprivileged communities. The NMTC allocation will empower United Bank to continue financing small businesses and nonprofits, which play a crucial role in job retention and community service provision. This alignment of financial support with community needs positions United Bank as a vital player in the economic landscape of the regions it serves.

In addition to this recent NMTC allocation, United Bank continues to reinforce its reputation as a CDFI, emphasizing the importance of community engagement and economic sustainability. Through strategic financial initiatives, the bank aims to create lasting impacts in low-income areas, ensuring that vital resources are accessible to those who need them most. As it moves forward, United Bank remains committed to fostering economic vitality and improving the quality of life for residents in its service areas.