About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (January 5, 2021)

handle is hein.crs/goveads0001 and id is 1 raw text is: Congressional ~tResear h Service Consolidated Appropriations Act, 2021 (P.L. 116-260): Emergency Capital Investment Program January 5, 2021 The Coronavirus Disease 2019 (COVID-19) pandemic has had devastating economic effects, including a significant increase in unemployment. Certain studies indicate that low- and moderate-income communities and minorities have borne this economic hardship to a disproportionately high degree, such as by being more likely to experience job loss and difficulty paying for necessities. Division N, Title V, Section 522, of Consolidated Appropriations Act, 2021 (P.L. 116-260), establishes the Emergency Capital Investment Program (ECIP) through which the Treasury Department can make capital investments in certain depositories (i.e., banks, savings associations, and credit unions). The purpose of the program is to increase the availability of credit, grants, and forbearances to groups disproportionately affected by the pandemic. The program shares certain similarities with previous Treasury capital investment programs. Emergency Capital Investment Program Section 522 allows Treasury to make investments in eligible institutions to support their efforts to provide loans, grants, and forbearance for small businesses, minority-owned businesses, and consumers, especially in low-income and underserved communities ... that may be disproportionately impacted by the economic effects of the COVID-19 pandemic. Total investments cannot exceed $9 billion; $4 billion is set aside for institutions with less than $2 billion in assets, of which $2 billion is set aside for institutions with less than $500 million. Eligible institutions include depositories that are either (1) minority depository institutions (i.e., 51% or more owned by individuals who are minorities) or (2) a Community Development Financial Institution (CDFI). CDFIs are entities, some of which are not depositories, certified to receive grants and other assistance from the CDFI Fund established by the Riegle Community Development and Regulatory Improvement Act of 1994 (P.L. 103-325) because their business plans include a focus on fostering economic development in target neighborhoods or groups. Under ECIP, eligible institutions must submit applications to participate, including information about how the investments will be used meet the needs of communities disproportionately affected by the pandemic. The Treasury will purchase capital (e.g., preferred stock or a similar financial instrument) issued by Congressional Research Service https://crsreports.congress.gov IN11565 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most