KeyBank awarded $50 million in tax credits to encourage lending in low income areas

KeyBank awarded $50 mln in special tax credits

CLEVELAND — KeyBank, the main banking subsidiary of KeyCorp, said Wednesday it was awarded $50 million in special tax credits meant to encourage lending in low and moderate income areas.

It was the fourth time KeyBank received such funds, taking its total benefit under the program to $330 million.

The bank said it will use the credits to support small business lending, community commercial real estate and financial services counseling. The credits allow recipients to reduce interest rates on loans to businesses in qualified areas.

In October, KeyCorp said its loss ballooned in the third quarter to $438 million, or 52 cents per share, compared with a loss of $48 million, or 10 cents per share, a year earlier, as it put aside more money for possible loan losses.

KeyCorp shares closed earlier down 8 cents at $5.74.