SBA 7(a) Paycheck Protection Program (PPP) Loans are Now Eligible Collateral

  • April 23, 2020

As part of our COVID-19 relief efforts, we are pleased to announce the Federal Home Loan Bank of Chicago (FHLBank Chicago) will accept Paycheck Protection Program (PPP) loans as eligible collateral from member institutions that are approved SBA lenders. This change is effective immediately.

Am I Eligible to Pledge PPP Loans with FHLBank Chicago? What are the Pledge Limits?


Sample Calculation: 

For every $1,000,000 in Collateral Lendable Value (CLV) a member currently has, $284,090 in PPP unpaid principal balance that can be pledged.


How Do I Report This Collateral and What Value Might I Receive?


Where is the PPP Loan Listing File, and How Do I Report PPP Loans as Collateral? 

You will find the PPP Listing File template here, which is an abbreviated version of the Loan Listing File for other collateral types.

Once the PPP loan listing file is completed, login to eBanking and Select Collateral > Upload Files.

If you are also pledging PPP loans to one of the Federal Reserve Banks in Chicago, St. Louis, and Minneapolis under either the Federal Reserve’s Paycheck Protection Program Liquidity Facility (PPPLF) or the Primary Credit Facility, you will be required to provide a loan listing to each institution, which ensures that each loan is only pledged once.

Operational Readiness with FHLBank Chicago

If you are not currently pledging collateral to FHLBank Chicago, review the Steps for Uninterrupted Access on the COVID-19 Resource Center, especially Step 3, to ensure you are operationally-ready to pledge PPP loans to FHLBank Chicago. 

If you are currently pledging collateral, you can leverage existing collateral to fund PPP loans and other liquidity needs via competitively-priced advances. As an important reminder, your collateral is your currency to leverage the full benefit of your membership with FHLBank Chicago.

Stay Connected

FHLBank Chicago continues to closely monitor developments and will adhere to any future guidance provided by regulatory or federal directives and will notify you of any future changes at that time. Visit our COVID-19 Resource Center to learn more about these accommodations and to stay up-to-date on future relief provisions.

We are always here to support you, now and through any unforeseen challenges ahead.

Please feel free to contact your Sales Director with any questions.

Additional Resources

Contact Us

Please direct all media inquiries to:

Casey Reidy 
Director, Communications

Heather Bockstruck
Assistant Director, Communications