U.S. Department of Treasury Announces
Over $2 Billion in ECIP to 84 Credit Unions
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Capital investments in CDFI-certified and minority designated credit unions aim to expand capacity, lending, and access to responsible financial products and services to help members and small businesses revitalize and rebuild local communities.
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Today, Vice President Kamala Harris and Treasury Secretary Janet Yellen announced $8.7 billion of capital provided to community development financial institutions (CFDIs) from the U.S. Department of Treasury's Emergency Capital Investment Program (ECIP), which aims to support, prepare for, and respond to the economic impacts of the COVID-19 pandemic. A total of 84 CDFI and minority designated credit unions received ECIP investments, ranging from less than a million to over $200 million, for a total of over $2 billion in long term secondary capital loans.
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Announced as part of the economic stimulus package in late 2020 that allocated $12 billion in grants and investments to CDFIs and minority depository institutions (MDIs) and as a result of Inclusiv’s intense advocacy work along with key industry partners, ECIP made available $8.7 billion to expand the capacity of these financial institutions. CDFI and/or MDI credit unions are able to meet the needs of their communities, lend deeper, and expand access to affordable, responsible, as well as sustainable financial products and services for small businesses, low-income consumers, and communities of color, who were heavily impacted by the economic downturn from the pandemic.
Since the passing of the legislation, Inclusiv provided around-the-clock support, guidance, technical assistance and advocated on behalf of our movement. From Town Hall calls with Treasury officials to persuading NCUA to allow credit unions to accept 30-year investments, the Inclusiv team worked tirelessly to facilitate access to these unprecedented resources.
2021 has been a historic year for CDFI credit unions: 244 received $403 million in Rapid Response Program awards in June, 13 credit unions received $2.8 million to scale up small dollar loans and another 94 credit unions received $11.7 million in Technical Assistance grants in September, and 66 credit unions received $39 million in Financial Assistance grants in early December. The millions of dollars channeled to credit unions this year has almost doubled the total amount our industry has received since the inception of the CDFI Fund in 1996. This unprecedented amount of funding both affirms and furthers the barrier-breaking financial inclusion work that credit unions were founded to do and continue to exemplify in their communities.
Congratulations to all ECIP recipients.
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"It is an honor to participate in the US Treasury Freedman's Bank Forum today and to hear first-hand from Vice President Harris and Secretary Yellen the historic announcement of the ECIP recipients. This long-term investment in community development and minority designated credit unions will transform the scale and impact on low-income and historically excluded communities for generations to come. We recognize and celebrate the accomplishments of capital recipients today and pledge to support them as they leverage and deploy this capital to promote financial inclusion and equity," said Cathie Mahon, Inclusiv's President and CEO.
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"This is a historic moment for our credit union and for our community. With this well-deserved transformational investment, we will be able to increase our lending and keep empowering our members to build wealth and pursue their dreams," said Luis Pastor, President/CEO, Latino Community Credit Union and appointed member of the CDFI Advisory Board.
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"We’re honored to have been selected as part of the ECIP. The important work that CDFIs are doing on a daily basis is critical to improving the financial standing of those that are financially underserved in our country, many of whom were disproportionately impacted by COVID-19. The capital that we are receiving will enable us to expand our outreach into communities of need and do more for those we serve," said Jeff Ivey, President/CEO, River City.
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"GTE Financial is extremely proud to continue its people-helping-people mission through our focus on affordable lending and providing financial opportunity in underserved and disenfranchised markets. It’s a privilege to do this work. Thank you to all involved who continue to make a difference,” said Brian Best, President/CEO, GTE Financial.
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"This investment from the Treasury Department is a game-changer for our credit union and the low income and minority communities we serve. Historically, capital has been our biggest limitation to meet the needs of our community, and this secondary capital investment will help us expand our services and increase our lending to more business and consumers within our footprint. We’re grateful for this Administration’s commitment to community development and for Inclusiv’s leadership that was instrumental in making these resources available to us," says Aissatou Barry-Fall, President/CEO, Lower East Side People’s FCU.
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Photo: Vice President Kamala Harris and Treasury Secretary Janet Yellen, Freedman's Bank Forum, December 14, 2021
Photo: Cathie Mahon and Luis Pastor, Freedman's Bank Forum, December 14, 2021
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About Inclusiv
At Inclusiv, we believe that true financial inclusion is a fundamental right. We dedicate ourselves to closing the gaps and removing barriers to financial opportunities for people living in distressed and underserved communities. Inclusiv is a certified CDFI intermediary that transforms local progress into lasting national change. We provide capital, make connections, build capacity, develop innovative products and services and advocate for our member community development credit unions (CDCUs). Inclusiv members serve over 15 million residents of low-income urban, rural and reservation-based communities across the US and hold over $218 billion in community-controlled assets. Founded in 1974, Inclusiv is headquartered in New York, NY, with offices in Madison, WI. For more information about Inclusiv visit us at Inclusiv.org and connect with us on Facebook, LinkedIn and Twitter.
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About Inclusiv
At Inclusiv, we believe that true financial inclusion is a fundamental right. We dedicate ourselves to closing the gaps and removing barriers to financial opportunities for people living in distressed and underserved communities. Inclusiv is a certified CDFI intermediary that transforms local progress into lasting national change. We provide capital, make connections, build capacity, develop innovative products and services and advocate for our member community development credit unions (CDCUs). Inclusiv members serve over 15 million residents of low-income urban, rural and reservation-based communities across the US and hold over $218 billion in community-controlled assets. Founded in 1974, Inclusiv is headquartered in New York, NY, with offices in Madison, WI. For more information about Inclusiv visit us at Inclusiv.org and connect with us on Facebook, LinkedIn and Twitter.
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Inclusiv was instrumental in establishing the CDFI Fund in 1994, is a permanent member of the national CDFI Coalition and is the CDFI and community finance authority for the credit union industry. Our member CDCUs represent the majority of all CDFI-certified credit unions. Today, CDFI certification is an essential credential for credit unions with a focus on financial inclusion. Inclusiv is the credit union industry's best resource for learning more about certification and technical and financial assistance grants. For more information on our advocacy on behalf of CDFI credit unions, click here.
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