Community Investment: Commercial
Lending Advance
Commercial Lending Advance
For
Commercial and Agricultural
Lending
The Bank’s Community Investment
Advance (CIA) provides a member
financial institution a lower
cost long term source of funds
for commercial and agricultural
loans that promote economic
development. These discounted
advances are available for
financing that supports
commercial, industrial,
manufacturing, social service
and public facility projects and
activities. Advances can also be
used to support public or
private infrastructure projects,
such as roads, utilities, and
sewers.
A Commercial Lending
Advance under CIA can be used
for financing including loans,
purchase of a participation
interest in a loan for a CIA
eligible project or purchase of
mortgage revenue bonds where all
of the loans financed by the
bond are for CIA eligible
projects. Loans may include
commercial real estate loans,
equipment loans, operating or
working capital loans and
commercial construction and
rehabilitation loans. Loans may
include small agricultural
production and small
agricultural land loans. Loans
may be new originations or
refinance of existing loans.
Please read below, or see the
Commercial Lending Advance
Request for Funds form
for further instruction,
including Definitions. Call the
Community Investment Department
at 800.544.3452, ext. 1173,
for assistance in completing the
request form.
CIA Advantages
-
Promotes community economic
development in targeted area
-
Supports small businesses
and farms
-
Helps businesses retain and
create jobs in the community
-
Reduces interest rate risk
of long term advances
-
Fixed rate advances from one
year to 20 years
-
Priced below corresponding
regular advance rates
-
Minimum borrowing amount
$25,000
What loans
may qualify?
The Bank is targeting specific
economic development projects in
the CIA program, as described in
the
Community Lending Plan
and CICA regulation. This
includes:
-
Loans to Small Businesses
(per SBA and FFIEC reporting
requirements)
-
Small Agricultural
Production Loans (per FFIEC
reporting requirements)
-
Small Agricultural Land
Loans (per FFIEC reporting
requirements)
-
Beginning or young farmer
loans as defined by state
programs
-
Production, processing or
distribution for “Local
Foods” or “Urban Farming” as
defined by state or federal
programs
-
Alternative Energy Loans as
defined by state or federal
programs
Except for
loans to small businesses, the
targeted projects must also be
in a targeted area, or serve
targeted beneficiaries such as
lower-wage workers. Targeted
areas include:
-
Lower income areas (115%
Area Median Income Rural
area or 100% Area Median
Income Urban Area)
-
-
-
Federal Champion Community
-
Federal Enterprise Community
-
Military Base Closing Area
-
Brownfield Tax Credit Area
-
Community Adjustment and
Investment Area
Loans may also be qualified by
Disaster Declaration. Members with
projects located in a
Federal Disaster Area are
eligible for advances on commercial
loans which are used to help finance
repairs or losses related to the
disaster. Loans must be originated
within 18 months of the Federal
Disaster Declaration. Qualifying
loans must be located in the Federal
Disaster Area and loan funds must be
for repairs or losses related to the
disaster. Loans may be made to a
farm, business, social organization
or community. A member must provide
a concise project description in
their
Commercial Lending Advance Request
for Funds that includes the date
of the loan, loan amount, property
address and loan purpose. See
Federal Disaster Areas for
further information.
All loans used to qualify for
CIA must be originated within
three months of the date of an
advance (a “Closed Loan”), or a
member may take on advance based on
an estimate of loans to be closed (a
“Loan to be Closed”). If the latter,
a member must originate qualifying
loans within 12 months of the date
of the advance. At the time of the
advance, or at the end of 12 months,
as applicable, the member must
provide the Bank information to
qualify the loans for the advance.
See the
Commercial Lending Advance Request
for Funds form for further
instruction, including Definitions,
or call the Community Investment
Department at 800.544.3452, ext.
1173 for assistance.
How is a request for funds
made?
The member will submit a
Commercial Lending Advance
Request for Funds to the
Community Investment Department
with each application. The form
must be complete and information
certified by the signature of a
staff person at the member
institution authorized to apply
for advances. Please provide at
least 24 hours for the
processing of a request. To
apply, see the Commercial
Lending Advance Request for
Funds form. Call the Community
Investment Department at
800.544.3452, ext. 1173, to ask
for assistance in completing the
request form.
-
Borrower name or loan number
-
Borrower (project) street
address
-
-
-
Concise project description
-
Number of jobs created or
retained
-
For Small Business Loans,
business NAICS number and
documentation that the
business meets SBA size
limitations
-
For loans Qualified by
Income, attach documentation
of actual wages
This
information will be collected
with the Request for Funds if
the member is using “Closed
Loans”. If a member uses “Loans
to be Closed” the Bank will
follow up with the member after
12 months to obtain this
information.
