A program adopted by Congress at the end of 2020, which has attracted little press coverage, could provide great benefit to qualified community financial institutions. The Consolidated Appropriations Act, 2021 (Act), effective December 27, 2020, establishes an Emergency Capital Investment Fund (ECIF) modeled loosely on the Community Development Capital Initiative (CDCI) and Small Business Lending Fund (SBLF) programs of the Troubled Asset Relief Program (TARP) era.

The Act establishes an aggregate amount of $9 billion for Treasury Department investment in preferred stock, or debentures if a subchapter S corporation, of community financial institutions. Continue reading >