Loading...

Harris, Yellen Announce Billions in Investments to Emergency Capital Investment Program

December 14, 2021 by Reece Nations
Harris, Yellen Announce Billions in Investments to Emergency Capital Investment Program
Vice President Kamala Harris speaks during the Freedman's Bank Forum as Treasury Secretary Janet Yellen looks on in Washington, Tuesday, Dec. 14, 2021. (AP Photo/Carolyn Kaster)

WASHINGTON — Vice President Kamala Harris and Treasury Secretary Janet Yellen announced on Tuesday over $8.7 billion in investments through the Emergency Capital Investment Program for small businesses and low- and moderate-income consumers in rural and underserved communities.

The program’s investments were announced during this year’s Freedman’s Bank Forum and enable the Treasury Department to make direct investments in banks, credit unions and holding companies that are designated as either a Community Development Financial Institution or a Minority Depository Institution. ECIP was established by the Consolidated Appropriations Act passed last year and will go towards supporting 186 community financial institutions, according to a Treasury Department release. 

Support for minority-owned businesses is a key point of emphasis of the program with $3.1 billion in investments being offered to 57 minority depository institutions. Banks and credit unions comprise about 54% and 46% of the institutions recommended for an ECIP investment, respectively.

The investment amounts will range from more than $200 million to less than $100,000 and are intended to support “mission-motivated” institutions in order to sustain investments in low- to moderate-income disproportionately affected by the COVID-19 pandemic, according to the Treasury. These organizations typically require more time-intensive and personalized technical support for borrowers who face economic barriers.

While the Community Development Financial Institution Rapid Response Program announced in June provided $1.25 billion in grants to the organizations, ECIP funds will be provided through preferred stock or subordinated debt investments by the Department of the Treasury. The full list of approved ECIP applicants was included with the Treasury Department’s release announcing the investments.

Institutions receiving ECIP investments are headquartered in 36 states as well as the District of Columbia and Guam. The states with the most ECIP investment offers are Mississippi, Louisiana, North Carolina, California and Texas.

“We know that the communities hurt most by COVID-19 have often been communities of color, and Treasury has implemented relief legislation with equity in mind,” Yellen said in a written statement. “Today, we’re seeing one result of that effort: Treasury, through the Emergency Capital Investment Program, is injecting nearly $9 billion into Community Development Financial Institutions and Minority Depository Institutions.” 

Reece can be reached at reece@thewellnews.com.

In The News

Health

Voting

Treasury

April 5, 2022
by Dan McCue
President Moves to Fix ‘Family Glitch’ in Affordable Care Act

WASHINGTON — President Joe Biden on Tuesday will propose a new rule the administration believes will finally fix the so-called... Read More

WASHINGTON — President Joe Biden on Tuesday will propose a new rule the administration believes will finally fix the so-called “family glitch” in Affordable Care Act coverage, a change that could potentially save hundreds of thousands of American families hundreds of dollars a month. Under the... Read More

January 28, 2022
by Dan McCue
Senators Seek Taxpayer Penalty Relief Amid IRS Backlog

WASHINGTON — Sens. Bob Menendez, D-N.J., and Bill Cassidy, R-La., are leading an effort to convince the U.S. Department of... Read More

WASHINGTON — Sens. Bob Menendez, D-N.J., and Bill Cassidy, R-La., are leading an effort to convince the U.S. Department of the Treasury and the Internal Revenue Service to provide penalty relief for taxpayers amid what they describe as the “extensive” and “ongoing” processing backlogs at the... Read More

January 20, 2022
by Dan McCue
Treasury Department Sanctions Russian-Backed Actors for Activities in Ukraine

WASHINGTON — The Treasury Department on Thursday sanctioned four individuals engaged in Russian government-directed activities to destabilize Ukraine. The four... Read More

WASHINGTON — The Treasury Department on Thursday sanctioned four individuals engaged in Russian government-directed activities to destabilize Ukraine. The four individuals are Taras Kozak and Oleh Voloshyn, two current members of the Ukraine Parliament, and Volodymyr Oliynyk and Vladimir Sivkovich, both former Ukraine officials. In a... Read More

December 16, 2021
by Dan McCue
Biden Signs Bill to Raise Debt Ceiling, Averting Default

WASHINGTON — President Joe Biden has signed a bill raising the debt ceiling by $2.5 trillion, setting aside with the... Read More

WASHINGTON — President Joe Biden has signed a bill raising the debt ceiling by $2.5 trillion, setting aside with the stroke of his pen the daunting prospect that the nation  would default on its debts. The White House announced the signing of the bill without comment... Read More

December 14, 2021
by Reece Nations
Harris, Yellen Announce Billions in Investments to Emergency Capital Investment Program

WASHINGTON — Vice President Kamala Harris and Treasury Secretary Janet Yellen announced on Tuesday over $8.7 billion in investments through... Read More

WASHINGTON — Vice President Kamala Harris and Treasury Secretary Janet Yellen announced on Tuesday over $8.7 billion in investments through the Emergency Capital Investment Program for small businesses and low- and moderate-income consumers in rural and underserved communities. The program’s investments were announced during this year’s... Read More

December 6, 2021
by Dan McCue
Treasury Dept to Step Up Scrutiny of Money Laundering in Real Estate Market

WASHINGTON – The Treasury Department is seeking public comment on ways to reduce money laundering and other corruption in the... Read More

WASHINGTON – The Treasury Department is seeking public comment on ways to reduce money laundering and other corruption in the real estate market, part of a larger effort by the Biden administration to curb illicit financial activity as the economy continues to recover from the coronavirus... Read More

News From The Well