Introducing the 2022 COVID-19 Recovery Advance

  • April 11, 2022

Last month, during the 2022 FHLBank Chicago Member Meetings, we announced a new advance opportunity that supports members as they recover from the pandemic. This new advance program, the 2022 COVID-19 Recovery Advance, provides significantly-below-market rate advances with a one-year term.

Our 2022 COVID-19 Recovery Advance opens on Monday, May 2, 2022, with funds available through Friday, May 27, 2022. Members may apply here.

Introducing the 2022 COVID-19 Recovery Advance

We have allocated funds for all member and associate members to execute the 2022 COVID-19 Recovery Advance up to $5 million. The advance terms include:

Advance Structure:

  • 1-year term under the A121 advance type (Fixed Rate, Fixed Term)
  • Maximum borrowing amount up to $5 million
  • Significantly-below-market rate advance, with the fixed-rate announced weekly
  • 2% Reduced Capitalization Advance Program (RCAP) activity stock requirement

Other Eligibility Notes:

  • A request for this advance can be made one time only per member or associate member institution.
  • Unlike the prior COVID-19 Relief Advances, a prepayment fee will be charged for 2022 COVID-19 Recovery Advances.
  • Funds are subject to our regular collateral requirements; in the near term, we encourage you to ensure your institution has the necessary collateral capacity to take out this advance.

IMPORTANT NOTE: Application for this advance is a mandatory takedown and the advance must settle before it can be prepaid.

See the table below for summary schedule of fixed-rate announcement, application deadline, and advance settlement.

Next Steps

Applying for the 2022 COVID-19 Recovery Advance:

Weekly Fixed-Rate Email Sent by 8:30 a.m. from "Relief Advance" (reliefadvance@fhlbc.com)Application Submitted by Eligible Institution to Received Fixed-Rate2022 COVID-19 Recovery Advance Settlement Date
Week 1: Monday, May 2Friday, May 6 (1 p.m.)Monday, May 9
Week 2: Monday, May 9Friday, May 13 (1 p.m.)Monday, May 16
Week 3: Monday, May 16Friday, May 20 (1 p.m.)Monday, May 23
Week 4: Monday, May 23Friday, May 27 (noon)Tuesday, May 31
*Once an advance has settled, institutions will no longer receive the weekly fixed-rate email in future weeks

 

My Institution Has an Existing COVID-19 Relief Advance:

  • Contact your Sales Director for cost-efficient strategies to avoid wire transactions or to fund any maturity gaps.

For More Information

For additional details, visit our COVID-19 Resource Center to view our FAQ and to learn more about the advance requirements and processes for borrowing and applying.

Please contact your Sales Director with any questions.

Contact Us

Please direct all media inquiries to:

Casey Reidy 
Assistant Director, Communications 
creidy@fhlbc.com
312.565.5291