Community Small Business Advance

• Agricultural operations
• Commercial, service, or retail operations
• Hospitality and recreation-based businesses
• Internet-related businesses
• Social service providers
• Small-scale industrial and manufacturing operations
• Trades
• Professional services

• Limited to fixed rate, fixed term (A121) advance; subject to standard advance requirements
• Initial rate of 0%
• Program limits:
  • The overall program limit is $10M in interest-rate subsidy with a $250,000 individual member limit.
  • Subsidy is available on a first-come first-served basis.
  • The subsidy is calculated based on the applicable Community Advance rate in effect on the day of application approval.
  • Community Small Business Advance does not impact limits associated with other Community Advance programs.

To qualify, an FHLBank Chicago member must complete the Community Small Business Advance application and demonstrate the eligibility of the small business by providing supporting documentation for both beneficiary criteria:

• Geographic beneficiary: The principal place of business is located in FHLBank Chicago’s District (Illinois or Wisconsin), and in a low- to moderate-income census tract (defined as 80% of area median income or below).

• Activity beneficiary: The small business qualifies by either annual receipts or number of employees, based on the United States Small Business Administration (SBA) regulations, which utilize the North American Industry Classification System Codes.

The member has a limited pass-through rate to its borrower of up to 3.5%.

• Geographic beneficiary: The Community Small Business Advance Project Worksheet (included in the Community Small Business Advance application) and verification of tract median family income at or below 80%
• Activity beneficiary: The Community Small Business Advance Project Worksheet (included in the Community Small Business Advance application) and one of the following:
  • Schedule from the most recent tax return to verify annual receipts; or
  • Recent third-party payroll reporting or quarterly state income tax reporting to verify number of employees
• Documentation: Documented support that the member’s borrower is being charged a rate of no more than 3.5%

Use the subsidy calculator to calculate the subsidy amount of the small business loan.

Note: This number is an estimate and the actual subsidy will be calculated at application approval.

Questions related to Community Small Business Advance can be directed to FHLBank Chicago Community Investment at 312-565-5824 or ci@fhlbc.com.