Enterprise Financial CDE, LLC, a subsidiary of Enterprise Financial Services Corp. (EFSC), has been selected by the U.S. Treasury Department to receive a $40 million allocation of New Markets Tax Credits to provide financing for community development projects and qualified businesses located in low income communities in Arizona and Enterprise’s other markets.
Locally, Enterprise Bank & Trust, also a subsidiary of EFSC, is one of only three financial institutions selected to receive tax credit allocations. This is the second allocation of new market tax credits that Enterprise has received over the past three years, totaling $75 million.
“This is a program that allows us to contribute greatly to the communities in which we serve,” noted Jack Barry, chairman of Enterprise Bank & Trust’s Arizona region. “This is significant since not only does it allow for community projects in much-needed areas of our community, but it also provides job creation and long-term positive economic impact.”
The New Markets Tax Credit program was established by Congress in December 2000 to allow individual and corporate taxpayers to receive a federal income tax credit for making equity investments in organizations such as Enterprise Financial CDE, LLC that agree to invest in businesses and real estate developments located in low-income communities – areas which had historically been passed over for such investments.
Last year, Enterprise provided $10 million in new markets tax credit allocation to assist with the development of Oasis Hospital, an orthopedic and spinal injury health care facility in central Phoenix.
Enterprise Bank & Trust is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals. In Phoenix, Enterprise Bank & Trust has two branches, one in north Scottsdale and a centrally-located Camelback Corridor location.