CHICAGO, June 6, 2016 /PRNewswire/ -- The PrivateBank, through its subsidiary, Midwest Industrial Redevelopment Fund, today announced it provided $2.5 million in financing to Alco Products, LLC, in Detroit to increase production capacity and create new living-wage jobs.
Alco Products received low-cost financing through The PrivateBank's participation in the New Markets Tax Credit program, which promotes needed investments in economically disadvantaged communities. New Markets Tax Credits are administered by the CDFI Fund, a division of the U.S. Department of Treasury.
Alco Products produces waterproofing and roofing products for residential and commercial applications. Alco's 100,000-square foot facility is in a distressed area of Detroit, where the poverty rate in the neighborhood exceeds 38 percent. Alco Products is committed to providing important job opportunities for area residents and expects to create nine new full-time jobs as a result of the expansion.
"Alco has been located in Detroit for over 100 years, and the financing from The PrivateBank made it possible for the company to make a significant investment in our current facility and support our local community," said Lee Vandermyde, Chairman, Alco Products. "Our investment will allow Alco to better serve our customers and end markets while continuing to provide job opportunities for workers near our facility."
The PrivateBank established the Midwest Industrial Redevelopment Fund to facilitate the allocation of $50 million in New Markets Tax Credits it received in 2015. The Fund is focused on lending to commercial and industrial companies in Illinois, Indiana, Michigan, Missouri and Wisconsin that will use the financing to create living-wage job opportunities.
"Providing financing for projects in economically disadvantaged communities is a key component of our mission to promote stability in the communities we serve," said Larry D. Richman, President and Chief Executive Officer, The PrivateBank. "We created the Midwest Industrial Redevelopment Fund to support our clients as they create jobs and economic growth in underserved areas and leverage the benefits of the New Markets Tax Credit program."
The Midwest Industrial Redevelopment Fund was one of 76 community development entities in the United States awarded New Market Tax Credit allocation authority in June 2015.
About The PrivateBank
The PrivateBank is a part of PrivateBancorp, Inc., and delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities it serves. As of March 31, 2016, the company had 35 offices in 12 states and $17.7 billion in assets. The company's website is www.theprivatebank.com. The Midwest Industrial Redevelopment Fund community development entity is a wholly owned subsidiary of The PrivateBank.
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SOURCE The PrivateBank