Community Development Credit Unions Are Advancing an Equitable Economic Recovery with the Emergency Capital Investment Program
NEW YORK (September 22, 2022) Yesterday, the U.S. Department of the Treasury announced that is has made more than $8.28 billion in investments in Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI) through the Emergency Capital Investment Program (ECIP). ECIP recipients, particularly CDFI and MDI credit unions, play key roles as financial first responders. Their well-documented ability to extend capital to people and communities excluded by the mainstream financial system will ensure ECIP funds reach and help spur needed economic activity in low-income communities and communities of color across the country.
“Inclusiv congratulates all of its member credit unions that have received ECIP awards. This program is transformative, not just for the participating financial institutions, but for the community development movement as a whole. ECIP will help these locally-responsive, community-based lenders increase their impact significantly and will highlight their critical role in the US financial system.” – Cathie Mahon, President/CEO, Inclusiv
Emergency Capital Investment Program investments are key to advancing an inclusive recovery by supporting CDFI and MDI credit unions in providing capital and services to historically underinvested and excluded people, small businesses, and communities, especially low-income communities and communities of color. Inclusiv supported our member Community Development Credit Unions (CDCUs) in applying for ECIP, and more than 80 credit unions were approved for more than $1.8 billion in funds. These CDCUs will use the funds to expand their lending programs and community services to serve more members and meet the credit needs of their communities:
“Despite HOPE’s outsized impact, our assets have been small relative to the needs of people and places across the deep south. Fortunately, the Emergency Capital Investment Program forever changed the scale and reach of HOPE Credit Union in our regions. Just last week, we announced a $1 billion commitment to finance businesses, homeowners, and provide access to equitable, non-predatory banking services for families throughout the deep south. This is anchored by Treasury’s $92.6 million ECIP investment in HOPE. With it we will support $800 million to a billion dollars in private deposits of capital to our communities that will benefit more than 150,000 people in the nation’s most diverse region.” - Bill Bynum, CEO, HOPE
“In the three months after our investment, our lending has increased by 10%. This injection of capital has allowed us to expand our mortgage lending offerings to the states of South Carolina, Georgia and Virginia. We are going to begin a regional solution, not just a state solution. We have increased our staff by 8%. This will continue to be critical to support our expansion. We have also increased our operational capacity by launching remote account opening. It will allow us to lend deeper and expand access to affordable, responsible, sustainable solutions for businesses, low-income consumers and Latino consumers.” – Luis Pastor, CEO/President, Latino Community Credit Union
“ECIP provides us the capital we need to be a strong financial institution for our communities in need. It enables us to invest in our partnerships and expand our capacity and reach with our new Mobile Branch and offer in-person financial services in the Bronx as a pathway to a full-service branch. In July we launched our Mobile branch and enrolled 60 new members and 4 Selected Partners Groups (SPGs). The ECIP investment will enable us to continue to be a deep lender at a bigger scale: 85% of our loans go to low-income New Yorkers of color and our members in the persistent poverty county of the Bronx, many of whom are struggling to find affordable homes, access employment and sustain and grow small businesses. – Aissatou Barry-Fall, CEO, Lower East Side People’s Federal Credit Union
“Self-Help is honored to be among the community-focused financial institutions selected to participate in ECIP. At Self-Help, we’ve had the privilege of working with many communities that have historically not been served well by the financial sector and we’ve seen the impact that access to capital can have. Every day, we make loans to people who are already doing impressive things: investing in their neighborhoods, getting an education, supporting their families — despite facing major obstacles. When our borrowers have had the opportunity to access financing, they have been able to do even more: start and expand small businesses, provide needed services in their communities, and become first-generation homeowners. We look forward to the impact this program will have across the country, not just for our borrowers, but for all the communities served by ECIP awardees.” – Martin Eakes, Co-Founder and CEO, Self-Help
“Suncoast’s participation in the US Treasury’s ECIP program is a great thing for our community! The fact that we were able to assist the US Treasury by bringing $175 million into the state of Florida will have a lasting impact for years to come. We are so proud to be a part of this effort.” – Kevin Johnson, President/CEO, Suncoast Credit Union
“It is our honor to have been selected to receive $10 million in ECIP loan capital to support the mission-focused work we are doing to provide access where no other financial institution will go. We are committed to Southeast Alaska communities and providing important financial services and loans, including in remote communities not connected to the road system. Since late 2019, TFCU has deployed over $8.5 million in loans through our remote community microsites alone, helping people and small businesses finance property, vehicles, boats and more. To further advance the ECIP funding received, the Tongass Federal Credit Union board of directors approved a matching grant for Southeast Conference to create a revolving loan fund to support small businesses that otherwise may not be approved for loans through traditional banking options.” – Helen Mickel, President and CEO, Tongass Federal Credit Union
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For media inquiries, contact:
Kyiakhalid Ruiz
Director of Communications, Inclusiv
(212) 809-1850 x.210
kruiz@inclusiv.org