In an effort to help more CDFI and MDI credit unions deploy funds to communities and to ensure the highest level of participation possible from eligible financial institutions, the U.S. Treasury Department announced that it has extended its Emergency Capital Investment Program by 60 days. The new deadline is July 6, 2021.
Established by the Consolidated Appropriations Act, 2021, the Emergency Capital Investment Program was created to encourage low- and moderate-income community financial institutions to augment their efforts to support small businesses and consumers in their communities.
Under the program, the Treasury will provide up to $9 billion in capital directly to depository institutions that are certified CDFIs or MDIs to, among other things, provide loans, grants and forbearance for small businesses, minority-owned businesses and consumers, especially in low-income and underserved communities, that may be disproportionately impacted by the economic effects of the COVID-19 pandemic.
The Treasury will set aside $2 billion for CDFIs and MDIs with less than $500 million in assets and an additional $2 billion for CDFIs and MDIs with less than $2 billion in assets.