Banesco USA received $250 million in investment from the U.S. Department of Treasury's Emergency Capital Investment Program.

from the US Treasury’s ECIP

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Miami

“Having access to even more ECIP capital than expected means Banesco USA is able to further expand our lending capabilities to our South Florida and Puerto Rico communities. The ECIP funding enables us to leave a lasting impact that will be seen for years to come.”

Calixto (Cali) García-Vélez, President & CEO of Banesco USA

Banesco USA is the only bank in 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.

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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 minority borrowers, minority-owned businesses, small businesses, and borrowers located in underserved or minority communities.

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 announced continued year-over-year growth with its 2021 results, including a 12% growth in total gross loans, an impressive 63% growth in net income to $20.5 million, and a 10% increase in total assets to $2.1 billion. The bank’s successful and impactful 2021 results are complemented by receiving rating affirmation from Kroll Bond Rating Agency (KBRA). The assigned ratings confirm an eventful year that included the appointment of its new President and CEO, and becoming the only bank recipient in Florida or Puerto Rico to be eligible for a significant investment of up to $250 million by the U.S. Department of the Treasury’s Emergency Capital Investment Program (ECIP).

Who is this program for?

The investment enables Banesco USA to support locally-owned businesses which have always been crucial to success in the communities we serve. We want to continue developing professional businesses like doctors, lawyers, and engineers, along with other businesses that make a difference in the community.

Is this like other programs (i.e. PPP)?

No. The Paycheck Protection Program was administered by the Small Business Administration (SBA) and included language for individual and small business applications as well as forgiveness that does not apply to the ECIP. In the case of the ECIP, the Treasury is awarding Tier 1 capital to banks for the purpose of providing loans to minority-owned businesses and minority borrowers.

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Email: customerservice@banescousa.com
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