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%