We are pleased to announce that the Board of Directors of the Federal Home Loan Bank of Chicago (FHLBank Chicago) has approved approximately $30 million for a COVID-19 Relief Program consisting of zero-rate advances and grants that are available to all of our member institutions. We know that you will use the advances to strengthen your balance sheets and the grants to provide needed support to your communities.
In the years since the Great Recession, FHLBank Chicago has focused on serving our members and building our financial strength for just such a crisis as we all face today. We hope that this Program will help you provide much needed assistance to your customers and your communities.
The COVID-19 Relief Program opens on Monday, April 27, with funds available through Friday, May 22. In addition to the COVID-19 Relief Program, we have also increased funding for the Community First® Capacity-Building Grant Program to support nonprofit lenders in your communities. And, as you know we have previously announced other temporary relief provisions to help reduce disruptions faced by your borrowers.
Meet Your Immediate Liquidity Needs with Our COVID-19 Relief Advance
We have allocated enough funds for all member and associate member institutions to execute a COVID-19 Relief Advance up to $4 million.
- 1-year zero-rate advance
- Maximum borrowing amount is $4 million
- A request for this advance can be made one time per member or associate member institution
- 2% Reduced Capitalization Advance Program (RCAP) activity stock requirement
- Advance is pre-payable at any time without a pre-payment fee
- Requests for this advance can be made throughout the week, but advance proceeds will be funded once per week on Fridays
- If we are unable to process your advance request in the same week your request is received, your request will be processed on a subsequent Friday
- Funds are subject to collateral eligibility; we encourage you to begin to be ready to borrow by ensuring your institution has the necessary collateral capacity to take out this advance
Support Small Businesses and Nonprofit Organizations with Our COVID-19 Relief Grant Program
We have allocated enough funds for all member and associate member institutions to receive up to $20,000 in COVID-19 Relief Grant funds.
- A request for this grant can be made one time per member or associate member institution
- Beneficiaries are small businesses, as selected by the member or associate member institution, and nonprofit organizations in Illinois and/or Wisconsin
- Member and associate member institutions are asked to submit one request capturing all requested grant funds; the $20,000 can be distributed across multiple beneficiaries
- Grant requests can be made throughout the week, but funding will be processed once per week on Fridays
- If we are unable to process your grant request in the same week your request is received, your request will be processed on a subsequent Friday
Strengthen Nonprofit Lenders with Our Community First Capacity-Building Grant Program
We have increased funding for our Community First Capacity-Building Grant Program from $250,000 to $500,000 to support nonprofit lenders impacted by the COVID-19 pandemic.
- Grants up to $50,000 are available per member or associate member institution
- The 2020 program opened on April 6; the application deadline has been extended to Friday, May 22
- Additional information will be requested from select applicants, with award announcements expected in late August
- Applications must be submitted through a member or associate member institution to email@example.com
For additional details, visit our COVID-19 Resource Center to view FAQs and to learn more about the program requirements and processes for borrowing and requesting grants. You are also invited to join our Weekly Market Update webinar on Thursday, April 23, where we will spend time covering the facets of our COVID-19 Relief Program and answer any questions you may have. Please register for the April 23 webinar here. Our support for you and your communities during this pandemic is ongoing. As additional relief provisions are made, we will share those through our COVID-19 Resource Center.
We are here to support you, now and through any of the unforeseen challenges that may lie ahead.
Please feel free to contact your sales director with any questions.
President and CEO