Opportunity Zone Program
Solutions for Opportunity Zone Investors, Opportunity Zone Fund Managers and the Assets/Companies they invest in.
Founded in 1960, Northern Bank is a top performing, $2.1B asset commercial bank, headquartered just outside of Boston. With innovation at the core of the company vision – innovation is imperative – Northern Bank provides products and services for local businesses to fill gaps in their financial needs. We make decisions quickly but take the time to truly understand our customers. To stay true to our promise, we have launched a specialized practice to serve the banking needs of Qualified Opportunity Zone Funds.
What is An Opportunity Zone?
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The program provides a tax incentive for investors to re-invest their unrealized capital gains into an OZF (OZ Fund) that is dedicated to investing into OZ designated by the chief executives of every U.S. state and territory. States have designated up to 25% of low-income census tracts as Opportunity Zones. There are 8,761 census tracts that have the OZ designation spread across the country. These tracts have an average poverty rate of 32% compared with the national average of 17%.
Opportunity Zone Fund Incentives
Deferral of Capital Gains taxes. Capital gains from the sale of any asset (if reinvested within 180 days) are deferred until the sale of the new investment, or Dec 31, 2026, whichever is earlier.*
Step-up in Basis. Any investment re-invested and held for 5 years gets a tax basis increase of 10%, and any investment held for 7 years gets a tax basis increase of 15% - thereby reducing the original capital gains tax by that amount.
Permanent Elimination. Investments held for 10 years will pay no capital gains tax on the post-acquisition gains. This permanent exclusion only applies to the gains accrued in an Opportunity Fund.
*Northern Bank does not provide tax, legal or accounting advice, nor can we make any representations or warranties regarding the tax consequences of your transaction. We strongly encourage you to seek appropriate professional advice regarding your specific facts and circumstances.
Northern Bank Opportunity Zone Services
Outstanding Customer Service
- OZ Relationship Manager: Every Opportunity Zone Fund customer works with our specialized relationship manager to define a solution tailored to your needs
- Daily Banking Support: Dedicated Business Banking support team
- Security: Our team will work closely with your team to develop control and security procedures to help mitigate your risk for your transaction
Operating Accounts for OZ Portfolio Companies
- Full-service online and mobile banking for portfolio companies
Opportunity Zone Fund Administration
Northern Bank does not provide Opportunity Zone fund administration but we work with experienced companies who deliver fund administration services for their clients.
Let us know if you have any questions.
Northern Bank Cash Management Services
You know the value of smooth cash flow. We have the tools and the cash management professionals to make that happen for your business. No matter your size or location, put Northern Bank to work for you.
Key Features & Benefits
- Knowledgeable service: Our cash management experts understand your business and tailor custom solutions.
- Bank online: Whatever works for your schedule, we make your banking easy and convenient.
- Wires: Initiate domestic and international wire transfers.
- Fraud Protection: Using our Business e-Banking, you can create unique logins for each user and limit access to only the accounts and transactions they need.
Meet William Block
Director of Opportunity Zone Program at Northern Bank
With more than 20 years in the financial services industry, including the Royal Bank of Scotland in England, and HSBC, Chase, and Citi Group in the United States, William has distinguished himself in many facets of the industry from International Banking, and Private Banking to Commercial Lending as well as being a sought after public and educational speaker.
In his transition from the corporate world to consulting, he has assisted his client base to grow in sales, business development, project management, and overall education in the newly formed Opportunity Zones Federal tax bill as well as the USCIS EB-5 Program. William has achieved outstanding personal and team results by bringing projects from conception to completion, while coaching others to perform above, and beyond expectations.
Connect With Wil
Email: email@example.com | Phone: 781-569-2366