National
Conference of Black Mayors Receives Equity Commitment of $125
Million Dollars From US Bank For Post-Hurricane Katrina Rebuilding
Efforts
Washington,
DC -
(BlackNews.com) - US Bancorp Community Development Corporation
(USBCDC) and the National Conference of Black Mayors (NCBM)
have joined forces to provide monetary resources to over 50
cities affected by Hurricane Katrina, as part of the Community
Renewal Act of 2000 and the CDFI New Market Tax Credit Program.
"We
felt the most effective way to respond to the devastation
and destruction caused by Hurricane Katrina is to make a sustainable
impact by preserving and rebuilding residential and commercial
entities on behalf of the mayors we represent and their citizens,"
said Mayor Roosevelt Dorn, NCBM President and Mayor of Inglewood,
California.
"The
best method for us to accomplish our goal is through
our Community Development Entity (CDE) by leveraging
New Market Tax Credits," added Vanessa R. Williams,
NCBM Executive Director.
"This
New Market Tax Credit allocation will be used in Louisiana
and in other blighted areas of Mississippi and Alabama
to rebuild infrastructure and create lost jobs," Williams
concluded.
The executive board of the NCBM will meet in Washington,
DC, September 22-24 to discuss strategies for the launch
of this initiative. A press conference is scheduled
for 3:00pm, Thursday September 22 in the Zenger Room
of the National Press Club.
The New Market Tax Credit Program (NMTC) permits taxpayers
to receive a credit against Federal Income Taxes for
making qualified equity investments in designated CDE's.
Substantially all of the qualified Equity Investments
must in turn be used by the CDE to provide investments
in Low Income Communities. The credit provided to the
investor totals 39% of the cost of the investment and
is claimed over a seven-year credit allowance period.
Up to $3.5 billion in tax credits is available under
the current round of the NMTC Program, which attracts
private-sector capital investment into the nations urban
and rural low-income areas.
iCapital Finance, Inc. of Irvine, California is a full-service
Investment Bank that has expertise in NMTC and has worked
with US Bancorp on other projects including NMTC initiatives
in the State of New Jersey. US Bancorp has agreed to
assist iCapital with its work in New Market Tax Credits
and because of the need in these areas, iCapital requested
the equity commitment from US Bancorp. iCapital is working
with NCBM on other ongoing projects as well.
Randall Letcavage, Managing Director of iCapital states,
"Over the past five years of the New Market Tax Credit
Program there has never been a better use or opportunity
for the program. The NCBM understands that for every
dollar of Tax Credits given and the US Bancorp equity
commitment we could see another $4 to $8 of additional
leverage which means a potential of $700-800 million
in future dollars to help recover from this catastrophic
damage. iCapital is proud of act as the consultant and
play a role in bringing these formidable groups together
to help our country in a time of need."
ABOUT NATIONAL CONFERENCE OF BLACK MAYORS
Established in 1974, the National Conference of Black
Mayors, Inc. (NCBM) is a private, nonpolitical, nonpartisan,
nonprofit, 501(c) (3) tax-exempt organization. NCBM
serves over 500 mayors, nationwide, who represent more
than 30 million citizens. NCBM's mission is to enhance
the executive management capacity of its members for
the purpose of governing viable municipalities. NCMB
is headquartered in Atlanta, Georgia. For more details,
visit www.ncbm.org
ABOUT iCAPITAL FINANCE, INC
iCapital Finance, Inc. is a leading Investment Bank
specializing in servicing Municipalities, Small Cap
Public Companies and Middle Market Private Companies,
offering a wide range of financial advisory services,
including M&A, Equity and Debt Financing, Strategic
Advisory, and Financial Consulting. iCapitals industry
experience and financial resources have helped public
and private companies as well as municipalities in the
business and community development projects.
The information in this Press Release includes certain
forward-looking statements within the meaning of the
Safe Harbor provisions of Federal Securities Laws. Investors
are cautioned that such statements are based upon assumptions
that in the future may prove not to have been accurate
and are subject to significant risks and uncertainties,
including the future financial performance of the Company.
Although the Company believes that the expectations
reflected in its forward-looking statements are reasonable,
it can give no assurance that such expectations or any
of its forward-looking statements will provide to be
correct. Factors that could cause results to differ
include, but are not limited to successful performances
of internal plans, the impact of competitors, and general
economic risks and uncertainties.
PRESS CONTACT:
Dionne Mahaffey-Muhammad
National Conference of Black Mayors
dionnemahaffey@publicist.com
404-314-1715
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