Industrial Bank has been selected as one of the winners of the 2021 New Markets Tax Credit competition, the company announced Tuesday.

U.S. Assistant Secretary of the Treasury for Financial Institutions Graham Steele and Community Development Financial Institutions Fund Director Jodie Harris announced that Industrial Bank was one of 21 winners in a field of 107 contestants in late October. The bank was noted for its commitment to a low-income impact investment strategy and its capacity to effectively manage and deploy the subsidy.

“The NMTC program helps economically distressed communities attract private growth capital, using tax credits to enable larger investments than otherwise be possible,” said Berdell Knowles, Industrial Bank’s senior CDFI program consultant and CEO of the Knowles Company. “In the 18 years since the program’s inception, the CDFI Fund has made 1,461 allocation awards, which in turn have generated $60.4 billion of investment activity in low-income communities. NMTC allocations are scarce and oversubscribed because they offer such attractive incentives to institutional investors and prior allocatees.”

The bank, which is a certified Minority Development Institution and a Small Business Administration preferred lender, will leverage its NMTC allocation to provide investments to businesses and organizations that can create high-quality, accessible jobs and restore essential commercial services in underserved neighborhoods across Washington, D.C.-Baltimore metropolitan areas, with a particular focus on supporting entrepreneurs of color. B. Doyle Mitchell, the president and CEO of Industrial, was pleased that his institution had been selected.

“Industrial is excited that the fund has given Industrial Bank the opportunity to implement one of its most effective economic development tools and offer much-needed capital to our customers and the communities we mutually serve,” Mitchell said. “We are proud of our legacy of service to the most underserved and vulnerable populations in our communities, and we are excited about the additional services we can offer with New Markets Tax Credit authority.”

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