Reaching Underserved Communities: The Impact of Public-Private Partnerships

This session will highlight the impact of the US Treasury’s Emergency Capital Investment Program. Background: The Consolidated Appropriations Act, 2021 established the Emergency Capital Investment Program (ECIP) within the U.S. Department of Treasury (Treasury). This legislation provided direct investments to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) bank entities and credit unions.
The $8.57 billion ECIP/catalytical capital investments increased each institutions lending capacity to low and moderate income (LMI) and underserved individuals and communities.

The panel will discuss the early success and impact these investments have had in expanding loans to underserved communities; By year end 2023 ECIP recipients originated $58.3 billion in total loans, of which 74% were Qualified Lending to underserved borrowers. About 35% of total loans were Deep Impact Lending to the most underserved borrowers. The Treasury 2023 impact report that highlights the key impacts ECIP participants are having in their communities. The report also highlights ECIP participants with strong track records of engaging in Deep Impact Lending which is truly taking impact mainstream to main street! The 2024 results should be completed and highlighted during the panel. Socially motivated investors, including those engaged in the EOC, have indicated an interest in aligning their grantmaking, investments and deposits with Treasury’s community finance policies.

Types of Lending and Impact of these loans to be discussed:
People: Low to Moderate Income (LMI), Other Targeted Populations, low income borrowers, Mortgages to Other Targeted Populations
Places: Rural Communities, Urban Low income, Persistent Poverty Counties, Minority Communities, Indian Reservations, Native Hawaiian
Projects: Affordable Housing, Public Welfare Investments that primarily benefit LMI Communities or other targeted communities.

This lending has been transformative to both the financial institutions (the ECIP investment recipients) AND the communities they serve. We will highlight the impact the loans have made with specific short impact stories.