ECIP funding determination announced; second round rescinded
Published by: Emily Leite
June 14, 2023 | Government Affairs
When the Fiscal Responsibility Act of 2023 was enacted on June 3, most of the predicted government funding and economic disruptions were averted, lessening further exacerbating the already daunting circumstances facing credit unions in deposit generation, pricing and funding, and liquidity management. While the Act was mostly positive for credit unions, it rescinded COVID relief-related funding, including any “unobligated” Emergency Capital Investment Program (ECIP) funds. Unfortunately, the U.S. Treasury recently announced it was compelled to rescind any second-found ECIP funding that was not awarded prior to June 3, which included pending applications. This means any credit union with a pending second-round ECIP funding application is unable to receive ECIP funding.
Please reach out if Treasury’s ECIP determination impacted your credit union. The League is exploring alternative options to help credit unions access funds needed to support local communities.
Contact Emily Leite for questions or assistance.