(July 14, 2022, Hagåtña, Guam) – Community First Guam Federal Credit Union recently received a $10 million secondary capital investment from the U.S. Department of Treasury as part of the Treasury’s Emergency Capital Investment Program (ECIP). The ECIP, established by the Consolidated Appropriations Act of 2021, was created to encourage community financial institutions to support small businesses and low-to-moderate-income households in their communities.
“Because this investment counts as capital, we are able to increase our lending capacity to businesses and families at a time when pocketbooks are being squeezed by rising costs,” said Gerard Cruz, President and CEO of Community First.
Under the program, the U.S. 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. The U.S. Treasury 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.
“This is why our credit union exists,” said Perry Taitano, Chairman of the Board at Community First. “Our core market are members of our community. We are here to contribute to their success.”
According to Cruz, Community First has raised secondary capital from both the public and private markets in the past.
Cruz added, “A strong capital base opens up new growth opportunities for the company and keeps our depositors assured that their deposits are safe.”
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