SunTrust Selected for New Markets Tax Credit Allocation
17 Apr, 2012, 02:30 ET
ATLANTA, April 17, 2012 /PRNewswire/ -- SunTrust Banks, Inc. (NYSE: STI) was selected by the U. S. Treasury Department's Community Development Financial Institutions Fund earlier this year to receive $45 million in tax credit allocation authority in the 2012 round of the New Markets Tax Credit (NMTC) Program. The Company's subsidiary, SunTrust Community Capital, was one of 70 recipients receiving awards totaling $3.6 billion. This latest allocation to SunTrust is in addition to $295 million in previous rounds of which SunTrust has deployed $243.9 million. This is the fifth year SunTrust has been selected as a recipient.
The NMTC Program is designed to attract private-sector capital investment into the nation's urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs.
The award will allow SunTrust to continue to make loans and investments with reduced interest rates and/or non-traditional terms and conditions.
"SunTrust is extremely proud of its continuing success in the New Markets Tax Credit industry, and we are hopeful that Congress will extend the New Markets Tax Credit Program to enable us to continue making these impacts for low-income communities and low-income persons," said Chris McGillis, President of SunTrust Community Capital, LLC. "The program enhances our capabilities as a leading provider of community development financial solutions to clients throughout the Southeast and Mid-Atlantic. Our clients' efforts, supported by this capital investment, helps create jobs and solid economic opportunities in areas of severe economic distress."
The NMTC program, established by Congress in December of 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities.
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of December 31, 2011, SunTrust had total assets of $176.9 billion and total deposits of $127.9 billion. The Company operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves clients in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides mortgage banking, insurance, brokerage, investment management, equipment leasing and investment banking services. SunTrust's Internet address is suntrust.com.
SOURCE SunTrust Banks, Inc.
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