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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: National Association Member FDIC.

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Speaker 2: Erness What's Up?

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Speaker 3: A lot of people still are not familiar with opportunity,

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Speaker 3: like they heard of it, but they don't really know

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Speaker 3: what it is or how people have benefited from it.

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Speaker 3: So since you were a part of it, can you

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Speaker 3: kind of explain your work in the opportunity zones and

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Speaker 3: where does that stand currently?

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Speaker 2: Sure?

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Speaker 4: So number one, let me just say I always say

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Speaker 4: that the why is more important than the what, and

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Speaker 4: so for me, the why was I grew up in

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Speaker 4: a single parent household mired in poverty in North Charleston,

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Speaker 4: South Carolina, and one of the things I recognized as

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Speaker 4: a lawmaker was that so often opportunities were elusive for

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Speaker 4: us who lived in the wrong zip code, And so

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Speaker 4: when I designed the Opportunity Zone project, it was designed

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Speaker 4: around the why I felt like, if I could bring

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Speaker 4: the resources back to the community, more kids who were

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Speaker 4: smarter than I would have more opportunities than I had

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Speaker 4: when I was growing up. And so the why opportunity

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Speaker 4: zones were even created was because I understood personally watching

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Speaker 4: some of the smartest people I've seen on the planet,

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Speaker 4: we just lived in the wrong zip code. If I

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Speaker 4: could help those kids be empowered to make the difference

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Speaker 4: in their own lives and their mama's lives, then the

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Speaker 4: world would be a better place because these kids deserve

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Speaker 4: the greatest access that anybody else I've seen, and too

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Speaker 4: many of them had too few opportunities. So that's the

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Speaker 4: why behind opportunity zones. Opportunities zones did two things. Basically.

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Speaker 4: Number one, it gave two incentives that those who had

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Speaker 4: capital to take a look at the hardest hit economic

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Speaker 4: areas in the country. Those areas would be designated by

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Speaker 4: the governors of the states, not those of us in Washington,

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Speaker 4: because Lord knows people in Washington cannot define poverty in

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Speaker 4: North Charleston, South Carolina, or Simpsonville, South Carolina, or someplace

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Speaker 4: in Arkansas or Iowa. That has to be done by

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Speaker 4: people closer to the challenging areas themselves. And so the

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Speaker 4: governors were given the power to designate within their states

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Speaker 4: the areas that are considered by the low income areas.

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Speaker 2: Probably three quarters of.

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Speaker 4: Those areas are majority minority in most states, not all states,

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Speaker 4: but at the end of the day, it was happened

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Speaker 4: since the creation of those zones. We gave two incentives

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Speaker 4: to investors. One was a five year investment, you would

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Speaker 4: get a ten percent step up in your basis. A

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Speaker 4: seven year investment you get a fifteen percent step up

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Speaker 4: in your basis. That is attracted into the opportunity zones nationwide,

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Speaker 4: somewhere near seventy billion dollars of commitments and investments in

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Speaker 4: the poorest areas of our country, leading to a twenty

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Speaker 4: percent increase in property values, with over sixty percent of

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Speaker 4: the people living in opportunity zones owning their own property.

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Speaker 4: So that's one of the ways that you actually create

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Speaker 4: equity and seeing those property values go up. Number two,

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Speaker 4: it saw wage growth go around eight percent versus the

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Speaker 4: average in our country during those years was around three

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Speaker 4: point two percent. And then finally we saw access to

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Speaker 4: opportunity because we saw more entrepreneurs creating jobs and opportunity.

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Speaker 2: Zones that we saw before.

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Speaker 4: So wage growth was up, property values was up, and

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Speaker 4: the good news is gentrification was under five percent for

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Speaker 4: those seven years that we've had. Opportunity zones expires next year,

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Speaker 4: so we're gonna have to go back to the drawing

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Speaker 4: board to get the next round of opportunity zones available

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Speaker 4: for the market.

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Speaker 5: From my perspective, it sounds like from what you're saying

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Speaker 5: that you know everything that you just laid out, that

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Speaker 5: you feel like this has worked. I wonder, and you

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Speaker 5: can correct me if I'm wrong. In order to even

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Speaker 5: invest in opportunity zones, you have to use capital gains,

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Speaker 5: and that's where financial education comes into it, really, right,

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Speaker 5: because a lot of us have to even have accounts

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Speaker 5: to have capital gains. And so I wonder, how do

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Speaker 5: you make sure that the average person or the average

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Speaker 5: entrepreneur is able to invest if they don't even have

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Speaker 5: privilege or even understand that process.

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Speaker 2: Yeah, we've had a ton of events around the country.

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Speaker 4: As a matter of fact, this is one of those

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Speaker 4: biparts and coalitions that put the heat during the role

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Speaker 4: of the opportunity zones. I went across the country. I

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Speaker 4: did an event in DC with Mayor Bowser. She and

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Speaker 4: I went into Ward seven Ward eight and did an

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Speaker 4: Opportunity Zone event where we had over four hundred folks

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Speaker 4: show up and we talked about the incentives at the

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Speaker 4: city was laying on top of the national framework of

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Speaker 4: the opportunity zones.

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Speaker 2: We've seen that happen throughout the country.

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Speaker 4: I was in South Carolina, rock Hill, South Carolina, with

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Speaker 4: a good friend of mine who's a Democrat. Mayor John

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Speaker 4: Getty's in rock Hill, and he said, because of opportunity zones,

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Speaker 4: he's seen the first affordable housing come back to the

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Speaker 4: city in more than three decades.

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Speaker 2: So what we did was we did another event there.

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Speaker 4: I brought in minority investors, including TI and many others

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Speaker 4: to have a roundtable discussion to make sure that our

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Speaker 4: community understood the advantages, the challenges, and the real time

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Speaker 4: opportunities being presented through the opportunity zones. We did that

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Speaker 4: four or five years ago. We had investors around the country.

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Speaker 4: We had Bishop Jakes working in Georgia with Opportunities One

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Speaker 4: legislation working in the area to create more affordable housing,

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Speaker 4: and so we've seen an uptake of folks coming across

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Speaker 4: the country looking for ways to get invested in there.

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Speaker 4: But the good news is opportunity zones and having a

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Speaker 4: qualified opportunity fund only requires one person with a capital

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Speaker 4: gains tax burden who wants to reduce that burden. That

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Speaker 4: one individual can create their own qualified Opportunity Zone fund.

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Speaker 4: But the advantage was you have to stay for.

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Speaker 2: The long term. I don't want running and gunning.

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Speaker 4: I don't want you coming into community, make a couple

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Speaker 4: of dollars and running back out. All the incentives required

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Speaker 4: a five year or longer investment and getting that information

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Speaker 4: out to the community. It's one of the things that

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Speaker 4: we worked on through the seminars, the events, the meetings,

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Speaker 4: and then a national rollout that happened in twenty eighteen

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Speaker 4: twenty nineteen twenty twenty. We're on the tail end of

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Speaker 4: the Opportunity Zone, so we're going to have to have

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Speaker 4: that kind of rollout again so more people will have

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Speaker 4: more information to make the right decision to reinvest in

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Speaker 4: the community.

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Speaker 2: They come from.

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Speaker 6: An illegal alien from Guatemala charged with raping a child

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Speaker 6: in Massachusetts, an MS thirteen gang member from Al Salvador

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Speaker 6: accused of murdering a Texas man of Venezuelan charged with

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Speaker 6: filming and selling child pornography in Michigan. These are just

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Speaker 6: some of the heinous migrant criminals caught because of President

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Speaker 6: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 6: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 6: crossings are at the lowest levels ever recorded, and over

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Speaker 6: one hundred thousand illegal aliens have been arrested. If you

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Speaker 6: are here illegally, your next you will be fine nearly

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Speaker 6: one thousand dollars a day, imprisoned and deported, you will

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Speaker 6: never return. But if you register using our CBP home

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Speaker 6: app and leave now, you could be allowed to return legally.

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Speaker 6: Do what's right. Leave now. Under President Trump, America's laws,

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Speaker 6: border and families will be protected.

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Speaker 2: Sponsored by the United States Department of Homeland Security,