FHLBanks provide significant support to members and the communities members
serve to navigate economic fallout of COVID-19
Support reflects a wide range of customized programs with discounted pricing and other terms. Highlights:
Every FHLBank offered discounted advances to members targeted to families
Individual FHLBanks introduced new programs or expanded existing facilities to make grants to a wide range of constituents including small businesses, nonprofits, frontline workers, underserved communities and other organizations
The FHLBank system helped expedite the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) by supporting along with their regulator an initiative that led to the Federal Reserve providing funding and, in some cases, accepting PPP loans as collateral for advances
FHLBanks established funding for targeted lending programs and grants specifically focused on the needs of small businesses and the creation and preservation of jobs
FHLBanks granted program exceptions and increased flexibility in core member programs including Acquired Member Asset secondary mortgage purchases and Affordable Housing Program awards
FHLBanks increased their levels of charitable giving
Since the start of the pandemic, the FHLBanks have remained committed to keeping their employees and members safe, arranging to work remotely and at the same time operating at full capacity to fulfill their mission of providing reliable liquidity to members. By launching a series of specialized programs, the FHLBanks have provided a direct economic subsidy to programs that provided liquidity and other special funding to offset the economic adversity of the pandemic.
Most of these programs have sunset or been fully deployed, while others remain open. The aggregate impact of the programs has been significant and provided a broad spectrum of liquidity and other support.
A summary of the COVID-related special programs provided by the FHLBanks can be found here.
