KeyBank (NYSE: KEY), a Cleveland, OH-based financial services company, has been awarded $50m in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury as part of federal tax incentive program that encourages increased lending and investing in low- and moderate-income areas.
Key will use the credits to support small business lending, community commercial real estate and financial services counseling in qualified areas throughout the 14 states in which it operates.
Commenting on the allocation, KeyCorp National Sales Manager, Community Development Banking, James Poznik, was reported to say: “These new tax credits will provide a significant infusion of investment capital for community revitalization projects.
“They will enable us to go beyond traditional resources to raise additional capital for the development of projects that would otherwise not receive financing.
“When we can provide more creative, flexible financing solutions for business expansion in low-and moderate-income communities, this creates jobs and provides services to areas that need them”, Poznik added.