The Consolidated Appropriations Act, 2021
Twelve billion dollars have been made available to support Community Development Financial Institutions (CDFIs) and Minority Deposit Institutions (MDIs), as well as those servicing low-income and rural communities through the Consolidated Appropriations Act, 2021.
This legislation authorized the Emergency Capital Investment Program (ECIP) to assist eligible financial institutions and established two additional assistance programs: CDFI Rapid Response Program and Emergency Support and Minority Lending Program.
These generous programs are available to credit unions who meet the specific eligibility and application requirements. Alloya encourages qualified credit unions to pursue CDFI certification or MDI designation. Visit NCUA’s website to learn more:
Key Application Deadlines:
- Emergency Capital Investment Program: Friday, May 7, 2021
- CDFI Rapid Response Program: Thursday, March 25, 2021
- Emergency Support and Minority Lending Program: TBD
Emergency Capital Investment Program (ECIP)
The ECIP provides direct capital investment in financial institutions in the form of an unsecured debt obligation by the U.S. Treasury. You can review the term sheet on the Treasury’s website. The intent is to give the institution additional capital so it may fulfill additional lending, investments or services to targeted communities.
The investment amount is based upon asset size and eligibility, with 15 years to maturity and two years interest free, with rate reduction opportunities thereafter.
How to Apply
Eligible financial institutions must apply by Friday, May 7, 2021 at 11:59 pm ET. The application period may be extended at the discretion of the Treasury Secretary. View ECIP Application Instructions.
CDFI Rapid Response Program (CDFI RRP)
The CDFI RRP provides direct grants to financial institutions with CDFI certification as of February 26, 2021 to respond to the economic impacts of COVID-19 in distressed and underserved communities and people. At minimum, CDFIs will receive $200,000, up to $5 million, for eligible activities in eligible market(s) or the applicant’s approved target market(s).
How to Apply
CDFIs must apply to the CDFI Fund by Thursday, March 25, 2021. There are two major parts to the application:
- Standard Form-424 (SF-424) (submitted through grants.gov) – This form starts your application and contains important fields about your organization’s tax and payment information.
- CDFI RRP Application (submitted through AMIS) – This application will ask for information about your organization, including your organization’s financial data and compliance history.
Emergency Support and Minority Lending Program
This program is intended to support lending to minority small business and consumers. The program is not yet active, but the U.S. Treasury expects to open it by early summer 2021. There are no specific details on the program at this time, but it appears it will be managed by the CDFI Fund and potentially the Minority Business Development Agency (MBDA).
For additional details, visit the MBDA website.
How to Apply
This program is not currently accepting applications. Application deadlines and a link to the application portal will be posted once available.