Enterprise Financial CDE, LLC, the community development entity of Enterprise Financial Services Corp (NASDAQ: EFSC), has been selected by the CDFI Fund of the U.S. Department of Treasury to receive a $65 million allocation of New Markets Tax Credits (NMTC). In Phoenix, Enterprise Bank & Trust is actively seeking investment opportunities for a portion of the funding.
The tax credits are designed to provide financing for community development projects and qualified businesses located in low income communities. Enterprise Financial CDE, LLC was one of only 76 community development entities in the United States selected for an allocation and was awarded the third largest allocation in the nation. This is the fourth allocation of NMTC for Enterprise Financial CDE in the past five years for a total of $183 million. In the past, NMTC projects in Arizona have included projects for Southwest Orthopedic and Spine Hospital and for Habitat for Humanity of Central Arizona.
Jack Barry, President and CEO for Enterprise Bank & Trust’s Arizona region said, “We have used these investment dollars to create projects with a lasting community impact here where there is a true need. We’ve already seen continued development in these communities, allowing them to attract further investment and foster growth.”
Mitch Baris, President of Tax Credit Services for Enterprise, added, “We’re pleased to be selected for our third consecutive NMTC award and fourth in five years. It enables us to continue driving job creation and economic development in low income communities throughout our service area.”
The New Markets Tax Credit program was established by Congress in December 2000 to help economically distressed communities attract private investment capital by investors with a Federal tax credit. Investments made by organizations like Enterprise Financial CDE, LLC through the New Markets Tax Credit Program are used to breathe new life into neglected, underserved low-income communities.
Enterprise Financial CDE, LLC’s service area includes the states of Missouri, Illinois, Kansas and in Arizona the counties of Coconino, Maricopa, Mohave, Pinal and Yavapai.
Enterprise Financial Services Corp operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Founded on the idea of serving the lifetime financial needs of privately-held businesses, their owner families and other entrepreneurs, Enterprise Bank & Trust has operations in Phoenix, St. Louis and Kansas City with more than $3.2 billion in assets and 15,000 families.
In Arizona alone, Enterprise has more than $150 million in existing loans to a diverse client base.