In 2020, the $2 trillion CARES Act and the $900 billion Coronavirus Response and Relief Act included $12 billion in funding for community development financial institutions (CDFIs) and minority depository institutions (MDIs), ensuring resources will be directed to some of the communities hardest hit by the COVID-19 pandemic. Below are sources of government funding from which credit unions may benefit.
I. CDFI Fund Resources Specific to COVID-19
The CDFI Fund promotes economic revitalization in low-income communities by providing financial assistance to CDFIs, such as the Rapid Response Program (RRP) for COVID emergency relief and Technical Assistance and Financial Assistance grants. This is a unique source of grants for community development credit unions in the fight to bring economic relief to hardest-hit communities.
Who is eligible? Credit unions must be a certified CDFI through an application process from the U.S. Department of Treasury.
For more information on the CDFI Fund, click here.
II. Emergency Capital Investment Program
The Emergency Capital Investment Program (ECIP) helps community-based financial institutions support consumers and local small businesses in underserved communities with low-cost, long-term capital investments. It’s intended to position eligible lenders to make new loans as the economy recovers over the next few years — particularly small businesses loans.
Who is eligible? Credit unions must be certified as a CDFI or a minority depository institution (MDI), as well as low-income designated.
For more information on ECIP, click here.
III. Paycheck Protection Program
The Paycheck Protection Program (PPP) provides loans to help businesses struggling due to the pandemic's economic impact. Businesses may be eligible for loan forgiveness.
Credit unions, as PPP lenders, can help underinvested communities access these funds.
Who is eligible? All existing SBA-certified lenders will have delegated authority to process PPP loans. All federally insured depository institutions and credit unions, if they have not applied, may participate when they apply and are approved and enrolled in the program.
For more information on the PPP, click here.
Inclusiv Helps Credit Unions
Inclusiv is the only CDFI-certified intermediary and national advocate for community development credit unions. Learn about our CDFI expertise or about the benefits of membership, including free CDFI annual certification reporting (ACR) and eligibility analysis. As well, we provide free, live weekly informational sessions every Wednesday at 3 p.m. EST to assist credit unions interested in the CDFI program.
- Every third Wednesday of the month, the office hour will be dedicated to MDIs (November 17 is next). Check out Inclusiv's CDFI services for MDIs.
Inclusiv's consulting services also helps credit unions of all types and sizes expand and improve their financial service offerings.
Please visit Secondary Capital or contact capital@inclusiv.org for the ECIP.
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Information about these programs are evolving. Inclusiv will share new information as it becomes available.