April 5, 2011
The U.S. Treasury Department’s New Markets Tax Credit Program has awarded St. Paul’s Sunrise Community Banks $25 million in tax credit authority to stimulate investment in low-income communities throughout the Twin Cities.
Sunrise Community Banks, the parent company for Franklin Bank, Park Midway Bank, and University Bank, was one of 99 applicants headquartered in 27 states who received a total of $3.5 billion in tax credits for economic development and community revitalization through the New Markets Tax Credits program.
Administered by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund, the New Markets Tax Credit (NMTC) Program will help Sunrise Community Banks and other organizations accelerate economic development and job creation in the nation’s low-income communities by attracting investment capital from the private sector. Sunrise Community Banks will accomplish this by providing tax credits to investors who make qualified equity investments in vehicles called CDEs (Community Development Entities). The credit provided to an investor totals 39 percent of the cost of the investment and is claimed over a seven-year period.
Sunrise Community Banks will use part of the allocation to create small business loan pools to expand the bank’s lending to small and local businesses in highly-distressed neighborhoods of Saint Paul and Minneapolis.
“We have actively participated in the New Markets Tax Credit program during the last two years; however, this is Sunrise Community Banks first allocation award,” says David Reiling, CEO of Sunrise Community Banks. “As Minnesota’s Socially Responsible Bank, we’re delighted that the Treasury Department has given us the opportunity to drive job creation and economic development in low-income areas of the Twin Cities.”
For more information about Sunrise Community Banks, visit the bank’s Web site at: http://www.sunrisebanks.com.
About Sunrise Banks: Sunrise Banks, N.A., based in St. Paul, Minnesota, strives to be the most innovative bank empowering financial wellness. Sunrise is certified by the U.S. Treasury as a Community Development Financial Institution (CDFI), a designation earned by approximately 100 banks nationwide. Sunrise Banks is also a member of the Global Alliance for Banking on Values, a public benefit corporation and a certified B Corp for its demonstrated commitment to transparent corporate governance and positive community impact. Learn more at SunriseBanks.com, on Twitter @SunriseBanks, or on Facebook. Member FDIC.