Fifth Third Secures $85 Million New Markets Tax Credit Allocation to Accelerate Community-Led Economic Development
Fifth Third New Markets Development Company II has been awarded $85 million in New Markets Tax Credits (NMTCs) by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, reinforcing Fifth Third’s growing role as a national leader in place-based economic development and inclusive finance strategies aimed at revitalizing underserved communities across its footprint.
A Competitive National Allocation Underscores Fifth Third’s Community Development Strategy
The latest NMTC allocation places Fifth Third New Markets Development Company II among just 142 community development entities selected nationwide in the highly competitive Treasury allocation announced on December 23, highlighting both the rigor of the application process and the federal government’s confidence in Fifth Third’s ability to deploy capital effectively in economically distressed areas. The award reflects a broader national effort to channel private investment into communities that have historically faced limited access to capital, infrastructure gaps, and persistent economic inequities, with Fifth Third emerging as a trusted intermediary capable of translating federal incentives into tangible, on-the-ground outcomes.
Second Major NMTC Award in Fifteen Months Signals Momentum
This $85 million allocation marks the second NMTC award to Fifth Third within a 15-month period, following a $50 million allocation awarded in September 2024 to the Fifth Third New Markets Development Company, further strengthening the bank’s capacity to scale impact-driven investments. Together, these allocations significantly expand Fifth Third’s ability to support transformative projects that address housing shortages, commercial revitalization, workforce development, healthcare access, and small business growth in low-income communities, while also demonstrating sustained federal confidence in Fifth Third’s community development platform and governance framework.
Addressing Capital Gaps in Historically Disinvested Communities
At the heart of the NMTC program is the recognition that access to capital remains one of the most persistent barriers facing underserved communities, a challenge that Fifth Third has prioritized through its community development strategy. Kala Gibson, chief corporate responsibility officer at Fifth Third, emphasized that capital access is foundational to community progress, noting that financing is essential not only for housing development but also for revitalizing commercial corridors, supporting small businesses, expanding workforce training, delivering financial education, and empowering individuals to achieve long-term economic stability. Through this latest award, Fifth Third is positioned to accelerate its place-based strategy by directing capital to projects that generate both economic returns and measurable social impact.
The New Markets Tax Credit Program as a Catalyst for Private Investment
The New Markets Tax Credit program, established to stimulate economic growth in distressed communities, functions as a powerful catalyst for private investment by reducing risk and enhancing returns for investors willing to deploy capital in challenging markets. By providing a federal tax credit over a seven-year compliance period, the program enables investors to make larger and more flexible investments than would otherwise be feasible, helping close financing gaps that often prevent critical community projects from moving forward. According to the U.S. Treasury, every dollar of federal NMTC investment generates approximately eight dollars in private capital, creating a multiplier effect that amplifies the program’s impact well beyond its initial allocation.
Expanding Access to Jobs, Services, and Essential Infrastructure
The downstream benefits of NMTC-financed projects extend across multiple dimensions of community well-being, supporting job creation in sectors such as manufacturing, retail, healthcare, and technology while also expanding access to essential services and facilities. Investments facilitated through NMTCs frequently support the development of affordable housing, healthcare clinics, educational institutions, childcare centers, and community spaces that serve as anchors for neighborhood revitalization. By attracting private capital to areas that have long been overlooked by traditional lenders, the program helps create resilient local economies that can sustain growth over the long term.
NMTCs as a Core Tool in Fifth Third’s Community Development Toolbox
Susan Thomas, president of the Fifth Third Community Development Corporation, underscored the strategic importance of NMTCs within the bank’s broader community development toolkit, describing them as one of the most impactful mechanisms available for delivering capital where it is needed most. Through NMTC-financed investments, Fifth Third has been able to support healthcare clinics, community facilities, and locally owned businesses that provide not only employment opportunities but also critical services that improve quality of life for residents. These projects often serve as catalysts for additional investment, helping to stabilize neighborhoods and create pathways for sustained economic mobility.
Demonstrated Impact Through Flagship Community Projects
Fifth Third’s track record with NMTC deployments includes support for high-impact projects such as the Phillis Wheatley Westside YWCA in Atlanta and the Talbert House Hamilton County Crisis Center in Cincinnati, both of which illustrate how targeted capital investments can address complex social challenges while strengthening community infrastructure. These projects exemplify the bank’s ability to partner with mission-driven organizations to deliver facilities and services that meet pressing local needs, from housing stability and crisis intervention to workforce support and community engagement, reinforcing the role of financial institutions as active participants in social progress.
Community Economic Development as a Strategic Priority
Community economic development is not a peripheral initiative at Fifth Third but a central pillar of its corporate strategy, embedded within the Fifth Third Neighborhood Program. This program is designed to create and implement innovative, place-based economic development strategies that address the unique challenges of historically disinvested neighborhoods across the bank’s footprint. By aligning capital deployment with community priorities, Fifth Third seeks to move beyond transactional financing toward long-term partnerships that generate durable economic and social outcomes.
A Place-Based Approach Rooted in Local Collaboration
The Fifth Third Neighborhood Program is distinguished by its collective ecosystem approach, which emphasizes collaboration with local stakeholders, nonprofit organizations, public agencies, and community leaders to identify and address systemic barriers to growth. Rather than applying a one-size-fits-all model, the program focuses on understanding the specific needs and assets of each community, allowing solutions to be tailored to local conditions. This approach increases the likelihood that investments will produce lasting benefits, as projects are designed and implemented in partnership with the people they are intended to serve.
Driving Economic Mobility Through Financial Access
A central objective of Fifth Third’s community development strategy is to expand financial access and promote economic mobility for individuals and families who have historically been excluded from mainstream financial systems. By supporting projects that increase access to affordable housing, small business financing, and workforce education, the bank aims to create pathways for residents to build wealth, secure stable employment, and participate more fully in the local economy. These efforts are designed to produce a positive ripple effect, strengthening not only individual households but entire neighborhoods.
Supporting Small Businesses as Engines of Local Growth
Small businesses play a critical role in community vitality, serving as sources of employment, innovation, and neighborhood identity. Through NMTC-financed investments and complementary community development initiatives, Fifth Third supports the growth of small and minority-owned businesses that often face disproportionate barriers to capital access. By providing flexible financing and partnering with community-based organizations, the bank helps entrepreneurs expand operations, create jobs, and contribute to the economic resilience of their communities.
Advancing Workforce Development and Financial Education
Workforce development and financial education are essential components of Fifth Third’s holistic approach to community revitalization. Investments supported by NMTCs frequently include training facilities, educational institutions, and programs that equip residents with the skills needed to succeed in evolving labor markets. At the same time, financial education initiatives help individuals build financial literacy, manage credit responsibly, and plan for long-term financial stability, reinforcing the link between human capital development and economic opportunity.
Building Healthy and Safe Community Spaces
Beyond economic outcomes, Fifth Third’s NMTC investments contribute to the creation of healthy, safe, and inclusive community spaces that enhance overall quality of life. Healthcare facilities, community centers, childcare providers, and mixed-use developments supported through these investments serve as anchors for neighborhood engagement and well-being. By addressing both social and economic needs, these projects help foster environments where individuals and families can thrive.
Aligning Corporate Responsibility With Business Strategy
The latest NMTC award also reflects Fifth Third’s broader commitment to integrating corporate responsibility with core business strategy, demonstrating that financial performance and social impact are not mutually exclusive. By leveraging federal programs such as NMTCs, the bank aligns its growth objectives with the needs of the communities it serves, creating shared value for shareholders, customers, and local stakeholders alike. This alignment strengthens Fifth Third’s reputation as a responsible financial institution while positioning it for sustainable long-term growth.
Scaling Impact Through Continued Public-Private Partnerships
As Fifth Third deploys its latest $85 million NMTC allocation, the bank is expected to deepen its engagement in public-private partnerships that amplify the reach and effectiveness of community development investments. These partnerships enable the pooling of resources, expertise, and perspectives, increasing the likelihood that projects will achieve scale and sustainability. By working closely with the CDFI Fund, local governments, and community organizations, Fifth Third can continue to translate federal incentives into meaningful outcomes at the neighborhood level.
A Long-Term Vision for Inclusive Growth
Ultimately, the significance of Fifth Third’s latest NMTC award lies not only in the dollar amount but in the long-term vision it supports—a vision of inclusive growth in which capital flows to communities that have historically been left behind, empowering residents to shape their own economic futures. Through its place-based strategies, collaborative partnerships, and disciplined deployment of capital, Fifth Third is positioning itself as a catalyst for transformation, demonstrating how financial institutions can play a constructive role in building more equitable and resilient economies.
Strengthening Communities Through Strategic Capital Deployment
As the Fifth Third New Markets Development Company II moves forward with deploying its $85 million allocation, the focus will remain on identifying projects that deliver measurable impact while fostering economic self-sufficiency. By targeting investments that address critical needs such as housing, healthcare, education, and small business development, Fifth Third continues to reinforce the principle that strong communities are the foundation of a strong economy, and that thoughtful capital deployment can serve as a powerful force for positive change.
About Fifth Third
Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC.
