Certified by the U.S. Department of Treasury as a Community Development Entity (CDE)

UB Community Development (UBCD) is certified by the U.S. Department of Treasury as a Community Development Entity (CDE). This distinction was earned, in part, because of United Bank’s demonstrated community involvement, including execution of programs related to financial literacy, homebuyer initiatives and credit building programs. Founded in 1904, United Bank has a history of providing exceptional customer service and innovative technology to our customers, which has endured the test of time and is at the heart of our continued expansion into new markets.

In 2016, United Bancorporation of Alabama, Inc., the holding company for United Bank, received $65MM in New Markets Tax Credit, and remains the only community development entity headquartered in Alabama to receive the allocation. In 2017, following the successful deployment of more than $90MM of New Markets Tax Credit, UB Community Development received a $55MM allocation of New Markets Tax Credit. This allocation further validates our team’s extensive expertise and passion to bring community oriented economic development projects to qualifying areas. UBCD’s New Markets Tax Credit program is part of a federal tax credit program enacted by Congress in 2000, designed to stimulate private investment in urban neighborhoods and rural communities.

UBCD’s New Markets Tax Credit program and the Community Facilities Lending Programs provide funding options for eligible projects located in qualifying census tracts.  The qualifying census tracts consist of locations where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median.

Simply put, the New Markets Tax Credit allocation allows UBCD to raise capital from private investors in exchange for the rights to claim the tax credits over a 7-year period. The capital raised by investors in exchange for the tax credits is used to provide low-interest loans to qualified businesses in rural communities.

UBCD is currently using the tax credit program, Community Housing Capital, and Community Facilities Lending Program allocation to fund small businesses and finance projects related to education, healthcare, affordable housing, manufacturing, hospitality, non-profits and community centers. The projects funded through UBCD’s New Markets Tax Credit, Community Housing Capital, and Community Facilities Lending Programs will create jobs in communities, provide goods, services and housing options and ultimately improve access to quality healthcare and affordable food options in those areas.

Our past performance and experience in NMTC transactions coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for rural economic and community development.