U.S. Department of the Treasury, Emergency Capital Investment Program: "Application and Lending Plan Evaluation Factors"
Summary
An Emergency Capital Investment Program (ECIP) evaluation form setting out the criteria on which ECIP applicants are scored. Capacity to Execute on Lending Plan carries 650 points, covering track record in lending to LMI or minority individuals, past experience managing federal programs, reasonableness of lending plan projections and internal capacity. Responsiveness to Community Needs carries 350 points, covering understanding of target markets, LMI individuals and minority and historically disadvantaged individuals, and a Community Outreach and Communication Plan. Financial ability to pay dividends and interest is scored pass/fail against a minimum pro forma coverage ratio, and if ECIP is oversubscribed the overall score may be used to determine investment amounts.
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“U.S. Department of the Treasury, Emergency Capital Investment Program: ‘Application and Lending Plan Evaluation Factors.’”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-emergency-capital-investment-program-ap-852735dd63/
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Application and Lending Plan Evaluation Form
ECIP applicants will be evaluated and scored based on the following criteria. The Financial Ability and
Proclivity and the Capacity to Execute on the Lending Plan sections may be used to determine investment
amounts for individual applicants. In the event the ECIP is oversubscribed or exceeds the statutory set
asides for asset size, the overall score may be used to determine investment amounts.
Financial Ability and Proclivity Weighting (0 points)
Financial ability to pay dividends and interest payments (A
minimum pro forma dividend/interest coverage ratio of 1
1 Pass/Fail
to 1 is required. The investment amount may be lowered
in order to satisfy the minimum coverage ratio.)
Weighting
Capacity to Execute on Lending Plan (650 points)
A. Track record that demonstrates the capacity to
Outstanding = 260 pts (100%)
execute the lending plan, including the quality of the
High Satisfactory = 234 pts (90%)
data provided in Question 1 of the ECIP application
1 Satisfactory = 208 pts (80%)
related to lending to LMI or minority individuals
Low Satisfactory = 182 (70%)
Weak = 156 (60%)
B. Financial ability to execute on the lending plan
A. Past experience managing federal programs or awards,
Outstanding = 130 pts (100%)
Community Reinvestment Act examination findings
High Satisfactory = 117 pts (90%)
and ratings or prior violations of fair lending laws and
2 Satisfactory = 104 pts (80%)
regulations.
Low Satisfactory = 91 (70%)
Weak = 78 (60%)
B. Proclivity to pay dividends and interest payments.
Outstanding = 130 pts (100%)
High Satisfactory = 117 pts (90%)
Reasonableness of lending plan projections based on
3 Satisfactory = 104 pts (80%)
market size and condition
Low Satisfactory = 91 (70%)
Weak = 78 (60%)
Outstanding = 130 pts (100%)
High Satisfactory = 117 pts (90%)
Internal capacity of the applicant (e.g., staffing and
4 Satisfactory = 104 pts (80%)
networks)
Low Satisfactory = 91 (70%)
Weak = 78 (60%)
Weighting
Responsiveness to Community Needs (350 Points)
Outstanding = 140 pts (100%)
Lending plan demonstrates an understanding of all the
High Satisfactory = 126 pts (90%)
institution's target markets, including the impact of
1 Satisfactory = 112 pts (80%)
COVID-19 on these markets, and is tailored to meet those
Low Satisfactory = 98 (70%)
needs.
Weak = 84 (60%)
Outstanding = 70 pts (100%)
Lending plan demonstrates an understanding of LMI
High Satisfactory = 63 pts (90%)
individuals in target markets, including the impact of
2 Satisfactory = 56 pts (80%)
COVID-19 on LMI individuals, and is tailored to meet their
Low Satisfactory = 49 (70%)
needs.
Weak = 42 (60%)
Lending plan demonstrates an understanding of minority Outstanding = 70 pts (100%)
individuals and historically disadvantaged individuals in High Satisfactory = 63 pts (90%)
3 the institution's target markets who lack access to capital, Satisfactory = 56 pts (80%)
including the impact of COVID-19 on those communities, Low Satisfactory = 49 (70%)
and is tailored to meet their needs. Weak = 42 (60%)
Outstanding = 70 pts (100%)
Community Outreach and Communication Plan that
High Satisfactory = 63 pts (90%)
provides quantitative details and demonstrates the
4 Satisfactory = 56 pts (80%)
applicant consulted with the community and responded to
Low Satisfactory = 49 (70%)
their concerns.
Weak = 42 (60%)
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- Original
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