NCUA spreads word about ECIP extension

(July 16, 2021) A 14-day application extension is among the “clarifications and amendments” planned for the capital investment program created for community development financial institutions (CDFIs) and minority depository institutions (MDIs) in the face of the coronavirus crisis, NCUA reminded late last week.

NCUA drew attention to the extension in an “NCUA Express” item made public July 8. The extension is part of revisions being made to the Emergency Capital Investment Program (ECIP) developed by Treasury last year to assist CDFIs and MDIs that may be disproportionately affected by the financial impacts of the COVID-19 pandemic.

In a July 1 announcement, Treasury said the deadline to submit an application under the ECIP would be extended by 14 days once guidance is published by Treasury (which, as of Thursday, had not been released). The previous deadline was July 6. No other details were provided on the planned. clarifications and amendments.

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.

Revisions to already-submitted applications made be requested via Treasury; see the link below.

LINK:

Treasury  Emergency Capital Investment Program