Banesco USA Approved to Receive $237.5 Million Investment from the U.S. Treasury's Emergency Capital Investment Program
The Capital will Accelerate Banesco USA's Support of Minority Communities in South Florida and Puerto Rico
MIAMI, Dec. 15, 2021 /PRNewswire/ -- Banesco USA announces it is an approved participant in the U.S. Department of the Treasury's Emergency Capital Investment Program (ECIP). Banesco USA is eligible to receive an ECIP investment in an amount up to $237.5 million, which will enable the bank to increase lending and further provide a positive financial impact to the small and minority-owned businesses, and low- and moderate-income (LMI) 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.
In a release issued yesterday by the U.S. Department of the Treasury, it was announced the Treasury 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. 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 strong 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.
The communities which Banesco USA serves in South Florida and Puerto Rico were disproportionately harmed by the economic impact of the pandemic. 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. Today's announcement will allow Banesco USA to do even more.
"Access to ECIP capital enables Banesco USA to expand its product offerings and significantly increase its lending capabilities. 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," said Calixto (Cali) Garcia-Velez, President & CEO of Banesco USA.
"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 are committed to being good stewards of the ECIP investment capital and will continue to use sound and prudent lending practices," added Kenneth Schoeni, Chief Financial & Risk Officer of Banesco USA.
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. Mr. Garcia-Velez added, "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."
If you are a minority-owned business owner, an owner of a business which provides benefits to LMI communities, or need additional information, please visit www.BanescoUSA.com.
To view the U.S. Department of the Treasury's press release, please visit https://home.treasury.gov/news/press-releases/jy0530.
About Banesco USA
Founded in 2006 and based in Coral Gables, Banesco USA is an independent Florida state-chartered bank (https://banescousa.com/OFR-Cert-of-Good-Standing.pdf) with $2.0 billion in assets as of Sept. 30, 2021. The bank has four branches in South Florida: Coral Gables, Hialeah, Aventura, and Brickell; and one in San Juan, Puerto Rico. A location in the Doral area is coming soon. Visit www.BanescoUSA.com for additional information.
Media Contacts
Jessica Wade Pfeffer | 305-804-8424 | [email protected]
Tyler Sminkey | 786-390-8510 | [email protected]
SOURCE Banesco
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