Capital One Receives $100 Million Tax Credit to Fund Redevelopment; Benefits Low-Income Neighborhoods in Hurricane-Impacted Areas of Louisiana
MCLEAN, Va.--(BUSINESS WIRE)--June 5, 2006--Capital One Financial Corporation (NYSE:COF) today announced it has received an allocation of $100 million in New Markets Tax Credits to provide loans to businesses willing to invest in low-income Louisiana communities located in the Gulf Opportunity Zone.
The Gulf Opportunity Zone Act of 2005 provides for public assistance from the federal government to the 31 southernmost parishes of Louisiana and other areas of the Gulf Coast impacted by Hurricanes Katrina and Rita.
The allocation was awarded to Capital One Renewal Fund, LLC, a Community Development Entity (CDE) created by Capital One. CDEs are entities certified by the U.S. Treasury Department to compete for New Markets Tax Credits allocations.
Tax credits awarded by the government through the New Markets Tax Credits program facilitate bank loans at below market rates.
"The New Markets Tax Credit Program has been instrumental in Capital One's efforts to provide loans to quality businesses in areas of financial distress," said Rob Stuart, Capital One's commercial banking arena manager. "This allocation will enable Capital One to continue to provide capital to underserved areas and pass along greater economic benefits to the borrower. New Markets Tax Credits offer an incentive for businesses to invest in low-income communities and those investments can serve as a catalyst for community revitalization."
For information about how to apply for loans in the Gulf Opportunity Zone through the New Markets Tax Credits program, interested businesses should email Spencer Gagnet at Spencer.firstname.lastname@example.org.
About Capital One
Headquartered in McLean, Virginia, Capital One Financial Corporation (www.capitalone.com) is a financial holding company, with more than 316 locations in Texas and Louisiana. Its principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., and Capital One, N.A., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One's subsidiaries collectively had $47.8 billion in deposits and $103.9 billion in managed loans outstanding as of March 31, 2006. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 500 index.
CONTACT: Capital One Financial Corporation, McLean Steven Thorpe, 504-533-2753 email@example.com SOURCE: Capital One Financial Corporation