Sullivan’s Grocery Stores

Sullivan’s Grocery, a UB Community Development (UBCD) New Markets Tax Credit Loan & Investment Fund Success Story

UB Community Development, LLC (UBCD), a community development partner  of United Bank, announces $7.5 million allocated from the New Markets Tax Credit (NMTC) Loan & Investment Fund to renovate and expand Sullivan’s Grocery Stores in Mississippi.

All of the stores are located in food deserts, areas with limited access to affordable, nutritious food. Funds will be used to renovate, equip, and stock four existing Sullivan Grocery stores in New Hebron, Raleigh, Ruleville, and Forest, Mississippi. The funding will also be used to establish a new store in Brookhaven, Mississippi.

The predevelopment and construction associated with the projects is expected to create approximately 57 direct, full-time jobs. Once completed, the five stores will create an estimated 57 full-time permanent jobs and 97 part-time jobs in the next seven years. A portion of the funding will go to the development of a new 48,000 square foot store in Brookhaven. The total cost of building, equipping, and stocking the new store will be approximately $1.97 million. The four existing stores will be expanded, renovated, restocked and total more than 67,000 square feet.

Steve Sullivan, CEO of Sullivan’s Grocery said, “These funds will allow us to expand and renovate several existing stores in rural Mississippi. This is where we live, and we are thankful to be able to bring fresh foods to rural markets at an affordable price. We are especially excited about the opening of our new store in Brookhaven. The community has already turned out in support of having a locally owned grocery store in their neighborhood.”

These loans were originated through a partnership with Peoples Bank, a Mississippi-based Community Development Financial Institution (CDFI). Peoples Bank CEO, Dennis Ammann said, “Our partnership with United Bank is an excellent example of two community banks working together to improve the lives of the people in our neighborhoods; helping Sullivan’s Grocery improve and expand local access to fresh produce and meats is an important part of what CDFIs like Peoples & United Bank are all about.”

Sullivan’s Inc. is solely owned by President and CEO Steve Sullivan. With more than 40 years of experience in the grocery business, he is dedicated to his businesses and works full-time as a “hands on” manager. Sullivan’s Inc. currently has approximately 500 employees. Sullivan’s Inc. owns stores in Brookhaven, Bude, Flora, Forest, Hattiesburg, New Hebron, Raleigh, Ruleville, and Vicksburg, Mississippi, as well as Clinton, Amite, Kentwood, and Monroe, Louisiana.

About UB Community Development
UB Community Development’s strong history and experience in New Markets Tax Credit transactions, coupled with our passion for improving the communities around us, make UBCD Alabama’s premier financial partner for economic and community development. Through our NMTC projects, Community Facilities Lending Program and Community Housing Capital Fund, UBCD is working with community development partners in the fields of healthcare, education, manufacturing, public works, and more.

Since 2016, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded United Bancorporation of Alabama (OTC: UBAB), the parent corporation of United Bank and UBCD, $120 million in New Markets Tax Credit allocations. UBA, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a NMTC allocation from Treasury in the last decade. This success was made possible largely because of United Bank’s designation as a Community Development Financial Institution (CDFI) and the organization’s unwavering commitment to its CDFI mission to bring positive and sustainable economic and quality-of-life improvements to underserved communities, not only in its traditional banking footprint, but throughout the entire states of Alabama and Florida.

Additionally, UBCD, as the community development management entity for UBA, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural areas. Finally, UBCD also manages the $4 million Capital Magnet Fund Award that Treasury recently provided to United Bank. The CMF award requires UBCD, in conjunction with United Bank, to inject at least $40 million in capital to facilitate accessible, affordable and quality housing communities. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to receive and administer these programs.

Download the success story here.