The Federal Home Loan Bank of Chicago (FHLBank Chicago) announced it will allocate $50 million in interest rate subsidies to expand affordable housing, economic development, and community partnerships in Illinois and Wisconsin through its new Community Impact Advance Pilot Program.
According to the bank, the program provides an up to 2% reduction in interest rates on advances – which are secured loans – with the goal of helping member financial institutions amplify the impact they are making in their markets. The Community Impact Advance Pilot Program runs through June 30, 2027, and funds will be available on a first come, first served basis
FHLBank Chicago has already committed more than $110 million in community investment support in 2024.
“We recognize that economic challenges have created barriers to community investment. After speaking with members of varying sizes and balance sheet composition, the consensus was that expanding interest rate subsidies would be the most impactful way to positively uplift our communities,” said Carolyn Jaw, executive vice president, group head, sales, strategy, and solutions at FHLBank Chicago. “This increase in funding for community development activities builds on our ongoing efforts to create products and support initiatives that help build stronger and more sustainable communities.”
;
