The COVID-19 outbreak has hurt economic prospects for individuals and businesses. Tragically, this damage was particularly severe in areas long ignored and abused by the capital.

To remedy this economic suffering, the Emergency Investment Program (ECIP). The ECIP was formed in the budget package. The US Treasury Department officially launched the program on March 4, 2021.

The ECIP would transfer up to $9 billion to community development financial institutions (CDFIs). And to minority depository institutions (MDI). It is financing the one who has suffered the most from the consequences of the epidemic. And also provide financial assistance to those who have suffered decades of economic neglect.

What is the Emergency Capital Investment Program?

The 2021 Consolidated Appropriations Act established the Emergency Capital Investment Program (ECIP). The program allows banking institutions to provide loans to small businesses and consumers.

CDFIs or MDIs can receive up to $9 billion from the Treasury Department under the ECIP. The money is allocated for small loans, grants and minority-owned abstentions.

A total of $2 billion was made available to CDFIs and MDIs with less than $500 million in assets. An additional $2 billion has been set aside for CDFIs and MDIs with less than $2 billion in assets.

What is the difference between CDFIS and MDIS?

Community Development Financial Institutions (CDFIs) are non-profit financial institutions. The goal is to promote community development in underserved communities. To qualify as a CDFI, a financial institution must be certified by the government.

DFIs provide loans that are often easier to obtain than bank loans. The CDFIs will provide grants to companies affected by the pandemic in disadvantaged regions.

Minority Depository Institutions (MDIs) are deposit taking institutions (consumer banks and thrift companies). MDIs meet one of the two requirements listed below:

  • Minorities own at least 51% of the shares with voting rights;
  • The majority of board members are minorities. The organization primarily serves neighborhoods with large minority populations.

MDIs should help small businesses. Minority depository institutions must offer financial products to low and moderate income groups.

Other banking institutions may also provide loans for bad credit guaranteed approval $1000, in this difficult time. These settings are less reliable, but may be the solution if you have an emergency.

The ECIP request

Applicants must apply for the ECIP using an online platform. The application deadline was September 1, 2021. An applicant must complete the ECIP request form. Then the Treasury will review the application and decide if it is accepted.

Applicants must submit an emergency investment loan plan. The plan is part of the application process and must:

  • Demonstrate loans of 30% or more to low to moderate income (LMI) borrowers. Also, other targeted demographics, or a mix of the two over the past two fiscal years;
  • Explains how the applicant’s strategy and operational objectives will meet the community development requirements;
  • Involves a community outreach and communication strategy;

Investment restrictions and termination

The treasury can make up to $4,000,000,000 available in all program investments for eligible institutions. Whose total assets up to $2,000,000,000 that quickly demand to receive capital investment under the program.

But no less than $2,000,000,000 can be made available to eligible institutions. Whose total assets are less than $500,000,000 and apply quickly.

The initiative will end in six months. After the President declared the COVID-19 pandemic a national emergency.

Will ECIP benefit small businesses?

CDFIs and MDIs assist businesses in their respective communities and do not operate nationally. Therefore, to qualify for ECIP financial assistance, you must do so through a CDFI or MDI in your area.

CDFIs can be located using Opportunity Finance Network’s CDFI Finder. If you are looking for an MDI, the Office of the Comptroller of Currency (OCC) has a list of MDIs. Where you can find which MDIs currently exist, along with the areas each serves.

Major financial institutions have yet to reveal how the $9 billion in ECIP funds will be allocated. Businesses and individuals cannot currently apply for this funding directly. The only application documents available to date were for CDFIs and MDIs.

A partnership with a CDFI or MDI will help position you to take advantage of the ECIP. Keep in touch with a representative of the institution. They will alert you when financial aid is available.

Additionally, the Treasury Department recently announced the CDFI Rapid Response Program. It is a $1.25 billion program that offers funds through CDFIs for pandemic-related needs. Another recently announced complementary program is the Minority Loan and Emergency Support Program.

It is a $1.75 billion initiative to expand lending, grantmaking and investment activities. The program targets low- and middle-income minority communities. In addition, it targets minorities with significant unmet needs for capital or financial services.

To learn more about how you can use ECIP or any of these programs, contact a CDFI or MDI in your area.


ECIP is a lending program for low-to-moderate income financial institutions. It helps to provide loans and grants. It grants forbearance to small businesses and people affected by the COVID-19 outbreak.