Eligible credit unions interested in getting some of the $9 billion in capital provided for under the recently enacted Emergency Capital Investment Program at Treasury were encouraged to begin working on their applications sooner rather than later during a webinar hosted by the federal credit union regulator.
During the webinar, hosted by the National Credit Union Administration (NCUA), Martha Ninichuk, director of the agency’s Office of Credit Union Resources and Expansion (CURE), said once the application process opens up the funds are expected to go quickly.
The program, created under the Consolidated Appropriations Act, 2021, is intended to assist communities in low-income and underserved communities that may be disproportionately impacted by the economic effects of the COVID-19 pandemic. NCUA said eligible institutions include credit unions with a designation of community development financial institution (CDFI) or minority depository institution (MDI). Those categories of institutions include 747 federal and federally insured, state-chartered credit unions, according to Thursday’s presentation.
Ninichuk explained that the money provided under the ECIP is from Treasury and provided in the form of debt. She said the window for applications, when it opens, is expected to run two to three months. “Given the strong subscription we think will happen to obtain these funds, it may go pretty quickly,” she said. “As much as the credit unions can prepare their application information in advance before that window opens, we strongly suggest they do so.”
An online presentation document outlines the following regarding the process for seeking ECIP funding:
- To be eligible to receive a capital investment under the program, an eligible credit union must complete the Emergency Capital Investment Program Application Form.
- The form can be located at the U.S. Department of Treasury via this link: https://home.treasury.gov/policy-issues/cares/emergency-capital-investment-program
- For each application received, Treasury will consult with NCUA to determine whether the credit union may receive a capital investment under the Program.
- Responses to the Emergency Investment Program Application, including the Emergency Investment Lending Plan, may be used to determine investment amounts or prioritization of determinations.
Ninichuk pointed out that details on the ECIP are still being finalized by Treasury. “Please know that application requirements may change once the details are finalized,” she said.