Now Accepting PPP Loans as Eligible Collateral

last updated on Tuesday, May 19, 2020 in Business News

Federal Home Loan Bank of Des Moines (the Bank) remains committed to meeting your financial institution’s needs through all of the uncertainty that has been brought on by the coronavirus pandemic. We understand the impact that this crisis has had on you, your customers and your communities. Since the Federal Housing Finance Agency announced that the Federal Home Loan Banks can accept Paycheck Protection Program (PPP) loans as collateral, we have been working to create eligibility requirements and put technical systems in place to allow our members to pledge these loans as collateral.

Beginning Tuesday, May 19, 2020, the Bank is now able to accept PPP loans as collateral. 

Eligibility Requirements Overview

PPP loans pledged are limited to $5 billion total and cannot represent more than 20 percent of a member’s Total Collateral Capacity. This collateral type is only available to depository members with Blanket APSA agreements who meet approved credit requirements. Members must originate PPP loans. Purchased loans are not eligible. Loans greater than 30 days delinquent are ineligible.



Due to the COVID-19 pandemic, FHLB Des Moines (the Bank) will accept electronically signed, newly originated loans made in accordance with the SBA Paycheck Protection Program (PPP) requirements and guidelines. These electronically signed loans will remain eligible as collateral even if a wet-inked signed copy is not obtained.

This is a change from our announcement to members on May 19, in which we stated the Bank would allow the eligibility of new loan originations with electronic signatures until a wet-inked signed copy could be obtained.

Pledging and Reporting Process

  • Must notify Advance Collateral before initial pledge of PPP loans,
  • Use collateral type code 1286
  • Monthly Loan Listing is required using the General File Format
    • List the Unpaid Principal Balance (UPB) and Government Guaranteed UPB as the same dollar amount
    • List the Government Guaranteed Percentage as 100
    • View the loan listing reporting schedule

Loan-to-Value (LTV) Discount

The LTV Discounts Chart has been updated with this new collateral type. LTV Discounts are applied to the eligible unpaid principal balance of pledged loans.

Type Code Collateral Type LTV Discount
1286 SBA-Guaranteed Paycheck Protection Program Loan View Current LTV Chart


Contact us

Contact the FHLB Des Moines Collateral team with questions.

Your relationship manager is also available to answer questions.

  1. Collateral
  2. Credit and Collateral