In the United States, the Treasury Department will invest more than $8.7 billion in community finance institutions, with the aim of reaching communities that have been disproportionately impacted by the covid-19 pandemic, the agency said in a statement.
The investment must be officially announced by the vice president, Kamala Harris, and the secretary of the Treasury, Janet Yellen, at the Freedman Bank Forum, this Tuesday (14).
The amount will be implemented through the Emergency Capital Investment Program (ECIP) to increase lending to small businesses owned by social minorities as well as low- and moderate-income consumers in underserved communities, including rural areas.
“We know that the communities most affected by covid-19 are often communities of non-white people, and the Treasury implemented the relief legislation with equity in mind,” said Yellen, who presented the nearly $9 billion investment as a result of such effort.
ECIP will be offered in 36 states, the District of Columbia and Guam Island. Among the institutions recommended for this type of investment, about 54% are banks and 46% are credit unions, according to the Treasury.
ECIP investments will range in size from less than $100,000 to over $200 million. A total of $3.1 billion is being offered to 57 minority depositary institutions, the department says.
Reference: CNN Brasil
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