Emergency Capital Investment Program's Round II Rescinded: Exploring Alternatives to Continue Making an Impact
The recent rescindment of the funding for the second round of the Emergency Capital Investment Program (ECIP) has presented a new challenge for community development credit unions. However, this setback should not deter CDCUs from continuing the important work of serving the underserved and under-resourced communities. There are several avenues to explore to secure the funding necessary to continue making a positive community impact.
Assessing Internal Capital Resources: Start by evaluating your credit union's internal capital resources. Take stock of your current capital position, including retained earnings, member shares, and other available funds. This analysis will help you determine how much additional capital is required and guide your exploration of the best funding options for your credit union. By leveraging your existing resources, you can take a proactive approach to meet the needs of your community.
Forging Strong Local Partnerships: Building robust partnerships with local financial institutions, community development organizations, and other stakeholders can provide access to additional capital and resources. Collaborate with these entities to explore joint ventures, co-investment opportunities, or shared lending programs that align with your mission. By pooling resources and expertise, you can enhance your ability to secure the funding needed to support your community development initiatives.
Leveraging Inclusiv Capital's Expertise: As a member of the Inclusiv Network, you have access to the expertise and support of Inclusiv Capital. As a Community Development Financial Institution (CDFI) and CDFI intermediary, we specialize in providing capital and financial solutions to community development credit unions. We understand the unique challenges you face and can assist you in identifying alternative funding sources, navigating the capital-raising process, and developing strategies to support your community impact goals.
Exploring Other Funding Programs: While the ECIP's Round II has been rescinded, there are still other funding programs and grants available to community development credit unions. Research and explore options such as grants from federal, state, and local government agencies, private foundations, and other CDFI funding programs. These resources can provide the necessary capital to support your community development projects. Stay proactive and keep an eye out for funding opportunities that align with your credit union's goals and objectives.
Planning for the Future: It's important to take a long-term perspective and develop a strategic plan for your credit union's capital needs. Consider factors such as growth projections, regulatory requirements, and the evolving needs of your community. By proactively planning for future capital needs, you can position your credit union for continued success and ensure the sustainability of your community impact efforts. Stay focused on your mission and work towards building a strong financial foundation that supports the needs of the underserved and under-resourced communities you serve.
Inclusiv is here to support you throughout this process. We encourage you to leverage the resources and guidance available to you as a valued member. Explore the various funding options, engage in strategic partnerships, and stay informed about funding programs that can assist you in achieving your community development objectives.
As the landscape evolves, we will continue to provide updates and information that can help our members navigate these changes effectively.