The Treasury Department today announced that it will invest $9 billion in community development financial institutions and minority depository institutions through the newly established Emergency Capital Investment Program. The program is designed to support these institutions’ efforts to provide financial products and services for small and minority-owned businesses and consumers that have been affected by COVID-19.
Under the program—which was established as part of the December COVID-19 relief bill—Treasury investments may take the form of senior preferred stock or subordinated debt, depending on the type of applicant and other factors. The program includes set-asides of $2 billion for institutions with less than $500 million in assets and $2 billion for institutions with less than $2 billion in assets. Applications for funding must be submitted by Friday, May 7.
Treasury has also announced additional support for CDFIs and MDIs through the CDFI Rapid Response Program and the Emergency Support and Minority Lending Program.
