American War Cemetery

Bank Benefits

Benefits to Banks for CRA Investment and Lending

Community Reinvestment Act Compliance.

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Community Reinvestment Act Compliance.
CRA Impact Reports for regulators
Tax Credit Deductions
Investments
Loans
Board Service
Seminars
Internal Rate of Return
Community Betterment
Access to New Small Business Clients

The main problem tab right now is the tab called the "plan." The chart under the "Plan" needs to be removed completely. I think you could change that tite to "The First VVSBC in Colorado Springs." Then, you could put the items that relate to the market in Colorado Springs into the subcategory.

Why Banks Invest in VVOF

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  • CRA Reporting & Expertise: They provide shareholders with customized and extensive CRA Reporting and have an experienced CRA consultant as part of their team!

  • Financially: Each bank (or Limited Partner) owns a pro-rata share of the Fund, whereby risks and returns are divided among all shareholders

  • CRA qualified investments in each bank’s targeted assessment area(s) are purchased and earmarked, dollar for dollar, to each bank per CRA exam.

FUND CRA EARMARKING PROCESS

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STEP 1

Banks purchase shares in the BHF and provide the Fund Manager with their county-level assessment areas (AAs).

STEP 2

The BHF makes qualified investments in those targeted AAs which are purchased and earmarked dollar for dollar to each bank.

STEP 3

Banks receive comprehensive documentation from BHF stating that the main purpose of each investment is community development

STEP 4

Prior to each bank’s CRA exam, a complete summary of all earmarked investments is provided to the bank.

STEP 5

After each bank’s CRA exam, shareholders provide notification of their public performance evaluation and any changes to the AAs.

Bank and Investor Wealth Maximization

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Veteran Victory provides a positive community impact by creating 125 jobs, 200 temporary jobs, 10 business offices, 40 new jobs through the entrepreneurship and 100 units of new or improved apartment housing in each city. This impact helps reduce risk because institutions in the community have a vested interest in its success.

Tax-advantaged investors in the Fund are projected to develop from 80%-200% more after-tax wealth compared to non-tax-advantaged investors in the Fund. Investing full pre-tax capital gains into the Fund projects to a final after-tax MOIC of 3.1x on the full capital gain.

After-tax projections are projected to result in 100% more wealth generation for the average U.S. taxpayers assuming 44% combined federal and state income tax rate, 23.8% federal capital gains tax rate, 8.2% state capital gain tax rate, and full Opportunity Zone Fund tax benefits on both federal and state capital gains taxes.

Stacks of Coins

How QOZ Works

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Additionally, after-tax income received over the life of the investment is assumed to be held as cash rather than reinvested. Each investor’s tax rates and ability to benefit from any Opportunity Zone Fund tax benefits will vary based on the investor’s particular circumstances.

Investors who invest pre-tax capital gains into the Fund can invest more money than if they had paid taxes before investing, effectively borrowing from the government (with a negative interest rate if they hold for at least 5 years).

Tax-advantaged Fund investors who hold their investment for the entire Fund term of at least 10 years also qualify for the elimination of capital gains taxes on the capital gains basis generated by the Fund.

This document is not an offer or solicitation to sell or acquire securities or any other financial products and is not a prospectus.