Introducing the 2022 COVID-19 Recovery Advance
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-Rate | 2022 COVID-19 Recovery Advance Settlement Date |
|---|---|---|
| Week 1: Monday, May 2 | Friday, May 6 (1 p.m.) | Monday, May 9 |
| Week 2: Monday, May 9 | Friday, May 13 (1 p.m.) | Monday, May 16 |
| Week 3: Monday, May 16 | Friday, May 20 (1 p.m.) | Monday, May 23 |
| Week 4: Monday, May 23 | Friday, 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.