In an on-going effort to meet the needs of our members and their communities during the COVID-19 pandemic, the Federal Home Loan Bank of Chicago (FHLBank Chicago) continues to look for opportunities to support members’ community lending to small businesses and economic development projects.
Beginning June 22, 2020, loans made by members to Paycheck Protection Program (PPP) eligible entities can qualify for our Community Development Advance program. Under this program, members may access our discounted Community Advance rate to support qualifying community lending. Applications for this expanded program eligibility will be accepted through December 23, 2020. All program and advance requirements apply.
Simple Process at a Very Low Rate
New and returning applicants can expect an effortless and streamlined application experience. The Community Development Advance program is a subsidized advance at a notably low rate versus corresponding fixed rate advances of the same maturity.
The recent rate sheet from June 15, 2020 evidencing our Community Advance rate subsidy appears below. As you can see, the dividend benefit further reduces member's Community Advance rates by approximately 21 basis points.
What Are the Program Parameters?
- Member’s borrower must be PPP-eligible; the underlying loan is not required to be for PPP.
- Members will certify as to the PPP eligibility of their borrower; additional documentation will not be required to support eligibility.
- Applications relying on borrowers’ PPP eligibility to qualify for the Community Development Advance will be accepted through December 23, 2020.
- The underlying borrower’s loan must be funded by the member no later than December 23, 2020 and must be less than 90 days old at the time of the member’s advance draw. The member must draw the advance no later than December 31, 2020.
- The existing per-member Community Advances Program limit applies: Maximum advance amount is the greater of $250M or 10% of the member’s non-Community Advance portfolio.
- Members may submit a portfolio of loans to PPP-eligible entities to be funded under a single Community Development Advance.
How to Participate
Members interested in participating must complete the Community Development Advance application. If members have questions regarding the program or application, please reach out to your Sales Director or Community Investment at firstname.lastname@example.org.