Treasury plans to make clarifications and amendments to a capital investment program created for community development financial institutions (CDFIs) and minority depository institutions (MDIs) that may be disproportionately affected by the economic impacts of the COVID-19 pandemic, and those updates will be followed by an additional 14-day application period extension.
This information was pushed out Thursday by the National Credit Union Administration (NCUA) in an “express” communication for supervised credit unions. The NCUA was referring to an update to the Emergency Capital Investment Program (ECIP) page on Treasury’s website July 1.
The deadline for ECIP applications was last extended to July 6. In its July 1 update, Treasury did not provide details regarding the planned ECIP clarifications and amendments, but it said the 14-day application period extension would begin upon publication of its “forthcoming guidance.”
The ECIP was established under the Consolidated Appropriations Act, 2021. Under this program, Treasury will provide up to $9 billion in capital directly to depository institutions that are certified CDFIs or MDIs. The funding may be used to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers – especially those in low-income and underserved communities – that may be disproportionately impacted by the economic effects of the COVID-19 pandemic. Treasury says it 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.
Treasury said organizations can request an opportunity to revise their already-submitted applications by sending an email to ecip@treasury.gov; all other questions about the program should be directed to ecipinquiries@treasury.gov.