ICBC USA provides $1.5 million USD revolving credit facility to Asian Americans for Equality for Small Business COVID Relief Program

Project narrative

In April 2020, the Industrial and Commercial Bank of China USA NA (ICBC USA) entered into a $1.5 million USD unsecured revolving credit facility agreement with Renaissance Economic Development Corporation, Inc. (REDC)— a subsidiary of Asian Americans for Equality, Inc. (AAFE) nongovernmental organization — for purposes of lending to small businesses for relief during the COVID-19 pandemic. The loan carries a fixed interest rate of 3% per year and a final maturity date of April 23, 2027. The accrued interest on the outstanding principal balance was to be paid in 83 monthly installments, commencing on June 1, 2020. The outstanding principal balance and any accrued unpaid interest was due on the maturity date (a grace of about 7 years). At December 31, 2022, the the outstanding borrowing on the credit line was equal to $709,961 USD. Although the credit line is unsecured, the REDC borrowers collateralized the underlying loans. REDC launched the program, Emergency Small Business Relief Loan Fund, on March 27, 2020. The program also received financing from the New York Community Bank. REDC ended the program in 2021.