Fifth Third Secures $50M in New Markets Tax Credits for Community Development Initiatives
Fifth Third New Markets Development Company has secured a $50 million New Markets Tax Credits (NMTC) allocation from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. As a subsidiary of the Fifth Third Community Development Company, LLC (CDC), the company is among 104 community development organizations nationwide to receive part of the $5 billion allocation, announced on September 19.
“Our mission at Fifth Third CDC is to support low-income areas within our footprint that have long faced disinvestment, wealth extraction, and income inequalities,” said Kala Gibson, chief corporate responsibility officer at Fifth Third. “With programs like our place-based neighborhood investment initiative, we’ve been able to inject capital into these communities to bolster existing assets and overcome barriers to economic mobility. This new allocation will allow our Community Development Banking team and Fifth Third CDC to significantly expand our impact.”
The NMTC Program encourages private investments in economically challenged communities by offering federal tax incentives that help close financing gaps, making larger investments feasible. These investments stimulate job creation in sectors such as manufacturing, retail, and technology, while also enhancing access to housing and public services like healthcare, education, and childcare.
Fifth Third CDC plays a pivotal role in real estate investments across the bank’s 11-state region, fostering community growth through projects like affordable housing, small business facilities, and essential community centers. These efforts often provide residents with critical services, including financial education, social programs, and recreational spaces.
“This allocation underscores the national recognition of Fifth Third’s innovative approach to neighborhood-scale community development,” said Susan E. Thomas, president of Fifth Third CDC. “For the communities where we are actively involved, this funding provides us with an additional tool to channel capital where it’s most needed.”
Thomas further emphasized that NMTCs are particularly effective for revitalizing neighborhoods. “As we’ve expanded our place-based development efforts, the absence of NMTCs in our toolkit was limiting our full potential to serve these communities,” she said.
Fifth Third CDC has substantial experience in the NMTC program, participating as both an equity investor and leverage lender. It collaborates with Community Development Entities (CDEs), which focus on low-income communities, to finance qualifying projects. Recent investments include Cincinnati’s CityLink Center, mHUB in Chicago, and AVW Equipment in Maywood, Illinois.
Community economic development is central to Fifth Third’s Neighborhood Program, which implements place-based strategies aimed at creating positive change in nine historically underserved neighborhoods within its operational footprint. Since its launch in 2021, the program has introduced a new model for community development by partnering with local organizations to build ecosystems that drive both financial and social investments, addressing community challenges through collective solutions.
In December 2023, Fifth Third revealed that its initial $180 million, three-year commitment to the Neighborhood Program had been surpassed ahead of schedule, reaching $187 million in just two years. The bank has since extended technical support for the program through 2025 to ensure sustained progress and lasting impact.
“Our mission at Fifth Third CDC is to support low-income areas within our footprint that have long faced disinvestment, wealth extraction, and income inequalities,” said Kala Gibson, chief corporate responsibility officer at Fifth Third. “With programs like our place-based neighborhood investment initiative, we’ve been able to inject capital into these communities to bolster existing assets and overcome barriers to economic mobility. This new allocation will allow our Community Development Banking team and Fifth Third CDC to significantly expand our impact.”
The NMTC Program encourages private investments in economically challenged communities by offering federal tax incentives that help close financing gaps, making larger investments feasible. These investments stimulate job creation in sectors such as manufacturing, retail, and technology, while also enhancing access to housing and public services like healthcare, education, and childcare.
Fifth Third CDC plays a pivotal role in real estate investments across the bank’s 11-state region, fostering community growth through projects like affordable housing, small business facilities, and essential community centers. These efforts often provide residents with critical services, including financial education, social programs, and recreational spaces.
“This allocation underscores the national recognition of Fifth Third’s innovative approach to neighborhood-scale community development,” said Susan E. Thomas, president of Fifth Third CDC. “For the communities where we are actively involved, this funding provides us with an additional tool to channel capital where it’s most needed.”
Thomas further emphasized that NMTCs are particularly effective for revitalizing neighborhoods. “As we’ve expanded our place-based development efforts, the absence of NMTCs in our toolkit was limiting our full potential to serve these communities,” she said.
Fifth Third CDC has substantial experience in the NMTC program, participating as both an equity investor and leverage lender. It collaborates with Community Development Entities (CDEs), which focus on low-income communities, to finance qualifying projects. Recent investments include Cincinnati’s CityLink Center, mHUB in Chicago, and AVW Equipment in Maywood, Illinois.
Community economic development is central to Fifth Third’s Neighborhood Program, which implements place-based strategies aimed at creating positive change in nine historically underserved neighborhoods within its operational footprint. Since its launch in 2021, the program has introduced a new model for community development by partnering with local organizations to build ecosystems that drive both financial and social investments, addressing community challenges through collective solutions.
In December 2023, Fifth Third revealed that its initial $180 million, three-year commitment to the Neighborhood Program had been surpassed ahead of schedule, reaching $187 million in just two years. The bank has since extended technical support for the program through 2025 to ensure sustained progress and lasting impact.
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