U.S. Bank is using a portion of a past tax credit allocation to help finance the transformation of the McDonogh 19 School in the lower 9th Ward of New Orleans. It was one of two schools first racially integrated in the city on Nov. 14, 1960 by three, six-year-old African American girls: Tessie Prevost, Gail Etienne and Leona Tate (shown above). Now Tate is leading a renovation of the long-vacant building, which will include a museum focused on desegregation, civil rights, restorative justice and their experience there 60 years ago; space for an anti-racism training organization; and affordable senior housing on the upper floors. Photo: Bill Carson of U.S. Bank.
U.S. Bancorp Community Development Entity, LLC (USBCDE, LLC), the community development arm of U.S. Bank, received $65 million in tax credit allocations from the U.S. Department of Treasury to help address persistent gaps in economic outcomes in lower-income communities. The $65 million allocation is part of the more than $3.5 billion New Market Tax Credit (NMTC) program from the Treasury.
“With this allocation, we’ve maintained our commitment to investing in projects that erode the racial wealth divide, while also focusing on building relationships and a pipeline of projects in rural communities of color,” said Terra Neilson, USBCDE program manager. “Rural Latino, Native American and Black communities have a history of under-investment. Through tax credits, we can drive funding and job creation where it’s needed most and help close the economic opportunity gap.”
The USBCDE was one of only 76 community development entities to receive a share of the NMTC allocation authority package announced last week by the Treasury’s Community Development Financial Institutions Fund. This is USBCDE’s 10th allocation under the NMTC program, and the second year in a row it’s received among the highest amount of funding granted. Since its inception, USBCDE has invested more than $760 million in communities across the country. It’s also partnered with other CDEs to raise more than $5 billion for nearly 160 community development initiatives in 43 states.
Community Development Entities, like USBCDE, allocate tax credits to projects to attract private sector investments in disadvantaged communities that lack access to the long-term capital investment needed to support and grow businesses and create jobs. The program is an effective economic development tool to infuse up-front capital in areas that need it most. According to the Department of the Treasury, NMTC program awards generate more than $8 of private investment for every $1 invested by the federal government.
Some of the diverse projects USBCDE has financed with its allocation awards in the past year include a new state-of-the-art Boys & Girls Club in downtown Orlando; the Oglala Lakota Career and Technical Education School, the first ever brick-and-mortar high school on the Pine Ridge Reservation in South Dakota; an expansion of Latino-owned Mission Foods, a tortilla manufacturing plant adding jobs in Grand Prairie, Texas; and the Tate, Etienne, Prevost Center, which rehabs the former McDonogh 19 School — one of two schools first integrated in New Orleans on Nov. 14, 1960 -— into a museum/center focused on desegregation, civil rights, and restorative justice, plus affordable housing for seniors on the upper floors.
USBCDE also announced the addition of four new members to its advisory board, which reviews each deal in partnership with the bank’s NMTC team, ensuring alignment with its impact strategy. The new members include:
Learn more about the U.S. Bancorp Community Development Corporation at usbank.com/cdc.
Cassie Wagner, U.S. Bank