Sunrise Banks has received $60 million in New Markets Tax Credits from the U.S. Treasury’s Community Development Fund (CDFI), one of the largest allocations it has received over the last decade from the program that encourages investing in low-income urban-and-rural communities around the United States.
St. Paul-based Sunrise, one of 35 Treasury-certified CDFIs in Minnesota, is one of 100 banks nationally in the program, which also includes certified nonprofit community lenders, and other financial institutions. Sunrise has received among the largest Minnesota allocations in recent years.
Michael Morrell, a commercial lending officer at Sunrise, said the long-term tax credits, sold to affluent investors and institutions, typically help spur about $8 in private investment for every $1 in federal subsidy.
Related Sunrise-financed projects in recent years include the Twin Cities Habitat for Humanity headquarters and the new Midway YMCA in St. Paul’s Midway, Seward Co-op’s new Friendship Store in a so-called “food desert” on 38th Street S., east of Interstate-Highway 35W, the renovation of long-vacant 800 West Broadway in north Minneapolis and a new clinic for Open Cities Health Center.
Other CDFIs in Minnesota include African Development Center, WomenVenture, Meda, White Earth Reservation Federal Credit Union, Midwest Minnesota Community Development Corp. and Greater Minnesota Housing Fund.
Minnesota CDFIs have received $1.65 billion in New Markets credits since 2002.