The U.S. Treasury Department has announced that it will be providing additional clarifications and amendments to the Emergency Capital Investment Program, and that the deadline to apply will be extended by 14 days from the time of publication of the clarifications and amendments. No date was indicated when the additional clarifications and amendments would be provided. The original deadline to apply was July 6.
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 U.S. 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.
Secondary capital through the Emergency Capital Investment Program is available to credit unions that meet the following criteria:
- they have submitted an application for CDFI Certification by Dec. 27, 2020, and are currently certified at the time of application; or
- have MDI status at the time of application; and
- are low-income designated and federally insured.
Credit unions that want to revise their already-submitted application should submit a request to email@example.com. All other questions regarding this program should be directed to firstname.lastname@example.org.
Credit union professionals can access an on-demand webinar from Inclusiv, a strategic partner of the New York Credit Union Association, titled “Inclusiv Town Hall: COVID-19 Crisis, Pt. 20,” which outlines the framework necessary for completing the ECIP application. The webinar features Tom Fay of the NCUA’s Office of Examination and Insurance discussing secondary capital plans. The webinar can be accessed here (access passcode: 1yeVCr#7).