In September of 2022, the Department of Treasury provided $8.3 billion of Covid relief to CDFI and MDI banks through a program called Emergency Capital Investment Program (“ECIP”). This program provided substantial equity-like awards ranging from $60-500 million to encourage these organizations to increase their financial services to low- and moderate-income, urban, rural, and minority communities. Some recipients are publicly traded, and these large cash infusions attracted the attention of some deep value-seeking investors. In this article, I will explain why this program presents a rare potential opportunity to earn high financial returns while investing in entities that are making a significant impact in their communities.
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