Monday May 10, 2004
Today, U.S. Representative Anne Northup and Louisville Mayor Jerry Abramson announced that the Louisville Community Development Bank, in partnership with Frost Brown Todd LLC, has received a $62.5 New Markets Tax Credit allocation from the U.S. Department of the Treasury.
The capital raised by virtue of this tax credit incentive will be invested in businesses located in Louisville’s low-income communities, primarily in and around Downtown. The types of businesses that could be funded include mixed-use housing developments, grocery stores, and cultural- and tourist-related businesses, such as hotels and museums.
The New Markets Tax Credit program attracts investments into low-income communities by offering investors a 39% federal tax credit. The capital raised with this incentive must be used to make loans to or equity investments in businesses located in low-income communities.
“Treasury Secretary John Snow called me late last week to notify me of this wonderful news for Louisville. This incentive program will uniquely help the public and private sectors revitalize many of Louisville’s low-income communities,” said U.S. Representative Anne Northup.
“These funds will go a long way toward our efforts to rebuild and revitalize our neighborhoods, allowing us to leverage private dollars to partner with us in these endeavors,” said Mayor Jerry Abramson. “It will accelerate our existing revitalization efforts and create new ones in the neighborhoods that need it the most.”
“We are excited about the opportunity to use New Markets Tax Credits to expand our efforts to serve our community. This enhances our ability to help important community projects become realities,” said Pedro Bryant, President and CEO of Louisville Development Bancorp and of the Louisville Community Development Bank.
“Mergers work in Louisville. By working together and combining the unique strengths of two local companies, we are able to better serve our community with this new investment capital,” said Ed Glasscock, Co-Managing Member of Frost Brown Todd.
271 organizations applied for New Markets Tax Credit allocations totaling $30.4 billion. 62 organizations received a total of $3.5 billion of allocation authority. No other Kentucky-based organization received an allocation.
The New Markets Tax Credit team at Louisville Community Development Bank and Frost Brown Todd will begin identifying qualified projects (including those included in the application’s “pipeline”) and will then evaluate those projects to determine which will be most beneficial to the community and which are in most need of this incentive.
Louisville Community Development Bank is an FDIC-insured, commercial bank with the mission of stimulating economic growth in the distressed neighborhoods of Louisville. The bank is a self-sustaining institution that does not rely on public funding or grants and is one of only 54 banks nationwide to be certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI).
For more information visit the bank's web site at www.morethanabank.com
Frost Brown Todd LLC has more than 370 attorneys in seven offices located in Ohio, Kentucky, Indiana and Tennessee. Visit www.frostbrowntodd.com
online for additional information. For More Information, please contact: Gary Gambrell Craig Greenberg Vice President Attorney Louisville Community Development Bank Frost Brown Todd LLC
2901 West Broadway 400 West Market St. 32nd floor
Louisville, KY 40211 Louisville, KY 40202-3363
502-775-5232 fax 502-581-1087 fax email@example.com firstname.lastname@example.org www.morethanabank.com www.frostbrowntodd.com