Carver Financial Corporation, the holding company for Carver State Bank, was notified today that it will receive an allocation of $50 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund. Today’s award is the second won by Carver, which also received a $30 million award in 2018. Carver deploys NMTC awards across Georgia, making direct capital investments in high-impact projects that spur economic development in underserved communities.
“Carver is proud that our work in underserved communities is being recognized, and that we have another opportunity to bring quality jobs and community benefits like quality healthcare and healthy food to even more Georgia communities,” said Robert E. James, II, President of Carver Development CDE, the NMTC implementation arm of Carver. “The NMTC award is an outstanding tool that helps Carver deliver on our mission – Providing the Building Blocks to Financial Freedom,” said Chairman and CEO Robert E. James, Sr.
Carver State Bank was founded in 1927 in Savannah, Georgia. As a Black-owned bank, and a Treasury certified CDFI, Carver has embraced its mission by offering commercial and consumer deposit accounts and loan products, including SBA and other small business loans, together with sophisticated tools like New Markets Tax Credits, which the bank deploys in urban and rural communities in Georgia.
The New Markets Tax Credit Program was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban and rural communities. These areas lack access to the long term capital needed to support and grow businesses, create jobs, and sustain healthy local economies. A New Markets Tax Credit is a 39 percent federal tax credit, earned over seven years, on investments made in economically distressed communities.
With Carver’s prior award, it leveraged $30 million in allocation into almost $65 million in total investments in community and healthcare facilities, as well as manufacturing and other small businesses in rural and urban communities throughout Georgia, creating 389 permanent jobs and 227 construction jobs. With today’s announcement, Carver remains the only community bank in Georgia to ever win a NMTC allocation, and the only Georgia entity outside metro Atlanta to ever win an allocation.
Carver Financial Corporation, Carver State Bank, and Carver Development CDE are equal opportunity lenders.