Community Investment: Rural Capital
Advance
Rural
Capital Advance
RCA Pool of Funds
Help Members Stimulate Economic
Growth in Rural America
Rural Capital Advance: Overview
FHLB Des Moines developed our Rural
Capital Advance (RCA) product to
give our members another tool to
grow their business and grow their
community. The program was created
in response to members and rural
development experts to provide for
more investment capital for rural
areas.
FHLB Des Moines' Rural Capital
Advance is intended to support and
stimulate economic growth in rural
America. The Bank made a five-year
commitment to set aside $100 million
a year beginning May 1, 2005.
Members are provided discounted
rates for eligible Rural Capital
Advances. The price of this advance
is currently the Bank's cost of
funds plus administrative costs,
which cover the Bank’s expenses.
It's a cost-effective way to support
economic development in rural
communities.
Rural Capital Advance Special
Features
-
Only for commercial loans (see
Loan Qualifications)
-
Only for rural areas
-
Minimum advance amount of
$25,000
-
Up to $6 million advance limit
*
* This
program will add an additional
$1 million to a members existing
$5 million Community Investment
Advance limit, to be used
exclusively for Rural Capital
Advances. Members may also elect
to take all of their Community
Investment Advance limit as a
Rural Capital Advance.
Definition of Rural Area
For a Rural Capital Advance, a
"rural" area is defined as a unit of
general local government with a
population of 25,000 or less; an
unincorporated area outside a
Metropolitan Statistical Area (MSA);
or an unincorporated area within a
MSA that qualifies for housing or
economic development assistance by
the USDA.
You can determine if an address is
considered rural utilizing the
Geocoding/Mapping System for Business
Programs on the Property Eligibility
link on the
USDA website.
If a property is eligible for USDA
business programs, it would be
considered rural.
