Banesco USA approved to receive $237.5 million investment

from the US Treasury’s ECIP

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Miami

“Access to ECIP capital enables Banesco USA to expand its product offerings and significantly increase its lending capabilities. The lending we are able to offer, for both individuals and businesses, will immensely expand and those benefits will reverberate for years to come,”

Calixto (Cali) Garcia-Velez, President & CEO of Banesco USA

Banesco USA is the only bank in South Florida and Puerto Rico to benefit from the US Treasury's ECIP. This investment will have a long-standing impact on our community and the future of minority-owned businesses and community members.

* By filling out this form you agree to a Banesco USA officer to contact you. This is not a loan application.

If you are a minority-owned business owner, you may be able to benefit from this program. Schedule a consultation with one of our business bankers.

Miami

What is it?

Emergency Capital Investment Program (ECIP)

will increase lending to small and minority-owned businesses, and low and moderate-income consumers in underserved communities, including rural areas

How much?

$8.7 billion in investments

to increase lending to small and minority-owned businesses, and low-and moderate-income consumers in underserved communities, including rural areas

Miami
Miami

How many?

186 community financial institutions

will benefit. ECIP enables US Treasury to make direct investments in banks, credit unions and holding companies that are designated as a Community Development Financial Institution (CDFI) or a Minority Depository Institution (MDI)

Treasury will invest more than $8.7 billion in community financial institutions for the purpose of lending in communities disproportionately impacted by the COVID-19 pandemic.

Frequently asked questions:

What is the purpose of this program?

To promote the growth of communities which have been disproportionately impacted by the COVID-19 pandemic, particularly minority individuals and minority-owned businesses, an Emergency Capital Investment Program (ECIP) was established by the Consolidated Appropriations Act, 2021. It allows the US Treasury to invest in financial institutions that will generate impact and manage the resources to benefit communities directly.

What is the Emergency Capital Investment Program?

Established by the Consolidated Appropriations Act, 2021, the Emergency Capital Investment Program (ECIP) was created to encourage low- and moderate-income community financial institutions to augment their efforts to support small businesses and consumers in their communities.

Under the program, Treasury will provide up to $9 billion in capital directly to depository institutions that are certified Community Development Financial Institutions (CDFIs) or minority depository institutions (MDIs) to, among other things, 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. Treasury will set aside $2 billion for CDFIs and MDIs with less than $500 million in assets and an additional $2 billion for CDFIs and MDIs with less than $2 billion in assets.

What financial institutions were eligible to apply for ECIP investment? What was the selection criteria?

Treasury enabled an application portal as the only way for eligible low- and moderateincome community financial institutions to apply.

The Consolidated Appropriations Act, 2021, indicates that the ECIP is intended to support low- and moderate-income communities, minority communities, rural communities, underserved areas, consumers, small businesses, and nonprofit organizations, among others. Treasury took factors such as these statutory considerations into account when it determined the investment amount that eligible institutions would receive under the ECIP, particularly if the aggregate amounts requested by eligible institutions exceed available program funds. Using information provided in ECIP applications, Treasury determined a methodology for allocating available funds and determining investment amounts.

What is a Minority Depository Institution according to the FDIC?

As a Minority Depository Institution, Banesco USA has a strong track record of lending to minority borrowers and projects which deliver significant community economic benefits in the predominantly minority communities it serves in South Florida and Puerto Rico.

The FDIC’s Statement of Policy Regarding Minority Depository Institutions (MDIs) outlines two definitions of how FDIC-insured commercial banks and savings associations may qualify for MDI status. An MDI may be a federal insured depository institution for which (1) 51 percent or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. Ownership must be by U.S. citizens or permanent legal U.S. residents to be counted in determining minority ownership.

The FDIC maintains a list and tracks the insured MDIs it supervises, i.e., state-chartered institutions that are not members of the Federal Reserve System (Federal Reserve), as well as MDIs that are supervised by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. The FDIC takes this broad approach given its role in considering applications for deposit insurance and in resolving institutions in the event an MDI were to fail, regardless of the institution’s charter. The FDIC’s published list of FDIC-insured minority depository institutions does not include women-owned or women-managed institutions because they are not included in the statutory definition.

What institutions received ECIP funds?

The institutions to which Treasury is offering an ECIP investment are headquartered in 36 states, the District of Columbia, and Guam. The states with the largest number of institutions being offered ECIP investments include Mississippi, Louisiana, North Carolina, California, and Texas. Among the institutions recommended for an ECIP investment, approximately 54% are banks and 46% are credit unions. The ECIP investments will range in size from over $200 million to less than $100,000. A total of $3.1 billion in ECIP investments is being offered to 57 minority depository institutions. Click here to view the institutions that received ECIP awards.

How do these funds affect Banesco USA?

Access to ECIP capital enables Banesco USA to expand its product offerings and significantly increase its lending capabilities. This combination will serve to accelerate the positive impact Banesco USA facilitates in our communities. This investment will create a multiplier effect and allow Banesco USA to further expand lending to minority and LMI communities by an estimated $8.5 billion over the next 10 years.

What is the bank’s financial health?

Banesco USA reported a strong 2021 first semester resulting in a 12% annualized increase in total assets to $2.05 billion1. During this period, Banesco USA showed a significant annualized loan growth of 16%, well above the 0.2% Florida Southeast market average, and an impressive 34.5% growth in demand deposits. Additionally, the Bank reported $11.2 million pre-tax operating income (excluding gains from sales of investments and loan provisions), a 52% year-over-year increase, and $8.2 million in net income.

In a recent press release, Kroll Bond Rating Agency (KBRA) affirms the deposit and senior unsecured debt ratings of BBB, the subordinated debt rating of BBB-, and the short-term deposit and debt ratings of K3 for Banesco USA (“Banesco”, or “the bank”). The Outlook for all long-term ratings is Stable.

For questions about Banesco USA Visa®
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International Account Officer or call toll free from:

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Venezuela: 0-800-122-8226
Email: customerservice@banescousa.com
Monday to Friday from 8:30 AM - 5:00 PM

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