United Bank Receives $8 Million in Capital Magnet Funds Award from U.S. Department of Treasury
Atmore, AL – Robert R. Jones, III, President and CEO of United Bank, a subsidiary of United Bancorporation of Alabama, Inc. (OTCQX: UBAB), announced today that United Bank has received an award of $8 million from the U.S. Department of Treasury’s Capital Magnet Fund (CMF) program. The award will be managed by UB Community Development, LLC, a community development partner of United Bank. United Bank was one of 48 entities nationwide to receive a Capital Magnet Fund award from among the 137 applicants. United Bank was one of two applicants to receive an $8 million award, which was the largest award granted to a single entity.
These awards were made through the Fiscal Year (FY) 2020 round of the Capital Magnet Fund, and will support financing for the preservation, rehabilitation, or development of affordable housing for low-income individuals and families. Many low and moderate-income households are cost-burdened, paying more than 30% of their income for housing. The Coronavirus pandemic has laid bare the tenuous position that many households face with being able to find and afford housing. Utilizing the CMF award, United Bank will work with development partners and investors to increase the availability of quality affordable housing.
While discussing the CMF Award, Mr. Jones noted: “United Bank & UB Community Development have become leaders in providing innovative capital solutions to affordable housing developments across the Southeast. We realize our efforts in one area support our efforts in other areas of focus. Everything we do is interdependent, connected and has transformed us into a successful, impactful multi-bottom line Company. Our Company is working together, furthering our multi-bottom line mission by caring for and giving back to our employees, neighbors and communities.”
In addition to the CMF award, the U.S. Department of Treasury, through its New Markets Tax Credit Program, has awarded UBAB and UBCD $185 million in New Markets Tax Credit allocations since 2016. UBAB, and subsequently UBCD, are the only community development entities (CDE) headquartered in Alabama to receive a New Markets 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 mission to bring positive and sustainable economic and quality-of-life improvements to low-income and underserved communities, not only in its traditional banking footprint, but throughout Alabama and Florida.
Additionally, UBCD, as the community development management entity for UBAB, manages a $40 million Community Facilities Lending Program, which provides accessible, low-cost capital to local government and non-profits in rural and persistent-poverty areas. Like the New Markets Tax Credit awards, UBCD is the only Alabama-based entity to administer the CMF and Community Facilities awards.
For more information about UB Community Development, or for help with planning your next funding project, contact Alex Jones, President, UB Community Development at (251) 446-6017 or email email@example.com.
About United Bank
United Bank is a $993,000,000 financial institution that has enjoyed 116 years of continuous service to Atmore, Alabama and surrounding communities. United Bank has offices in Atmore, Brewton, East Brewton, Flomaton, Monroeville, Frisco City, Bay Minette, Foley, Lillian, Loxley, Magnolia Springs, Silverhill, Spanish Fort, Daphne, Summerdale and Semmes in Alabama. United Bank serves Santa Rosa County, Florida in Jay, Milton, and Pace. For more information about United Bank, please visit our website at www.unitedbank.com. Member FDIC.
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, affordable housing and more. For more information about UB Community Development, visit our website at www.UBCommunityDevelopment.com.