The U.S. Department of the Treasury’s second application round of Emergency Capital Investment Program funding closes January 31, 2023. Treasury anticipates between $160 million and $340 million will be available for investment in qualified institutions in the second round. Applications are due January 31, 2023, at 11:59 p.m. ET.

For more information, please visit the U.S. Treasury’s website.

Credit unions participating in the second round of ECIP funding and that meet the eligibility requirements under the NCUA’s Subordinated Debt rule may also apply for regulatory capital treatment under the pre-approval requirements outlined in the rule.

As in the ECIP’s first round, Treasury requires approved, qualified financial institutions to select a maturity of either 15 or 30 years during the closing process. Currently, the NCUA’s Subordinated Debt rule limits the maximum maturity of Subordinated Debt Notes to 20 years.

Last September, the NCUA Board issued a notice of proposed rulemaking to, among other things, provide flexibility on the maximum maturity of Subordinated Debt Notes. The Board is currently reviewing comments received on this rulemaking and will consider a final rule in the first half of 2023.

In the meantime, a credit union applying to the NCUA for regulatory capital treatment should indicate in its application that it would elect either the 15- or 30-year maturity in the event the NCUA Board finalizes the September 2022 proposed rule permitting a longer maturity period. If the Board does not finalize the proposed changes, second-round issuances will be subject to the 20-year maturity limit in the current Subordinated Debt rule.

The NCUA encourages credit unions to submit their Subordinated Debt applications to the appropriate NCUA supervision office by February 28, 2023. Contact your appropriate supervision office with any questions about the application process.