Emergency Capital Investment Program (ECIP)

Capital assistance program to USA and territories financial institutions in low- and moderate-income communities to address community and economic development needs. Funding is intended to offset the economic effects of the Coronavirus (COVID-19) health crisis and respond to the needs of small businesses, consumers, nonprofit organizations, community development, and other projects providing direct benefits to LMI communities, Low-Income individuals, and Minorities within the Minority, Rural, and Urban Low-Income and Underserved Areas served by the applicant.
The Emergency Capital Investment Program (ECIP) 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, Treasury will provide capital directly to depository institutions that are certified Community Development Financial Institutions (CDFIs) or minority depository institutions (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.Program Highlights:Incentivizing impactful lending: Treasury’s investments in participating institutions will be at a capped low-cost dividend or interest rate, with no dividends or interest payable or accruing during the first 24 months after issuance. This structure provides an incentive for impactful lending. Treasury is developing additional “deep impact” metrics to further incentivize targeted investments by participants in those communities most in need of capital.Ensuring capital treatment that maximizes program effectiveness: Treasury has collaborated closely with federal banking regulators to ensure the preferred stock investments under ECIP qualify for beneficial capital treatment. This will allow institutions to leverage their capital to maximize lending reach and impact.Planning for the long term: Treasury intends for this program to immediately provide support to CDFIs and MDIs, improving the fiscal health of participating institutions and enhancing real-time impact. Over the long term, Treasury expects the program will strengthen the viability of the CDFIs and MDIs, sustaining their role as important vehicles for fostering access and inclusion in low-income and traditionally underserved communities.