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Banesco USA to get $238M from US Treasury’s Emergency Capital Investment program

Banesco USA announced has been approved to participate in the U.S. Department of the Treasury’s Emergency Capital Investment Program (ECIP), for which it is eligible to receive an investment of up to $237.5 million.

With the funds it will be able to increase lending to small and minority-owned businesses, and low- and moderate-income consumers in the communities it serves in South Florida and Puerto Rico.

“This support will go far to directly benefit populations which have been disproportionately impacted by the COVID-19 pandemic,” the financial institution with a branch in Hato Rey stated.

The US Treasury announced it will invest more than $8.7 billion through ECIP in institutions across the country – Banesco USA is the only bank recipient located in Florida or Puerto Rico, the financial institution confirmed.

ECIP was established by the Consolidated Appropriations Act of 2021 and encourages mission-motivated community financial institutions to expand their efforts to support small and minority-owned businesses and LMI consumers in their communities.

As a minority-led MDI (Minority Depository Institution), Banesco USA has a track record of lending to minority borrowers and projects which deliver significant community economic benefits in the predominantly minority communities it serves.

The ECIP capital invested in Banesco USA enables the bank to expand its lending to minority-owned businesses, develop new lending products, and increase its sustained support of businesses and organizations which provide benefits to LMI populations.

“Access to ECIP capital enables Banesco USA to expand its product offerings and significantly increase its lending capabilities,” said Banesco USA President Calixto (Cali) Garcia-Velez.

“This combination will serve to accelerate the positive impact Banesco USA facilitates in our communities. The lending we are able to offer, for both individuals and businesses, will immensely expand and those benefits will reverberate for years to come,” he said.

The communities which Banesco USA serves in South Florida and Puerto Rico were “disproportionately harmed by the economic impact of the pandemic,” bank officials said.

“The bank responded swiftly to those communities’ needs with loan accommodations for existing borrowers, participation in the PPP program, continued lending to minority-owned businesses and borrowers, and increased investment in Puerto Rico,” it noted. “Today’s announcement will allow Banesco USA to do even more.”

Kenneth Schoeni, chief financial & risk officer of Banesco USA, said “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.”

“We’re committed to being good stewards of the ECIP investment capital and will continue to use sound and prudent lending practices,” he said.

The bank is well-positioned to leverage the support from ECIP to expand its existing successful lending experience and execute new strategies to reach a broader population, said Garcia-Velez, adding that “minority borrowers have always been an integral part of Banesco USA’s customer base and we look forward to expanding our relationships with our community.”

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This story was written by our staff based on a press release.

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