FHLB Cincinnati discounted Advance programs help ease COVID-19 economic fallout

FHLB Cincinnati is expanding availability of discounted Advances to help members address the impact of the novel coronavirus (COVID-19) pandemic in their communities. The FHLB created a new, zero-interest rate Advance program, RISE (Responsive, Inclusive, Supportive and Empowering) and is temporarily modifying its existing discounted Advance programs.

The newly created RISE Program will offer up to $2 billion in six-month Advances at zero percent interest, for a limited time beginning May 1, 2020 at 10 a.m. EDT. These Advances can be used to support COVID-19 related assistance by all Fifth District members, including loans originated by member financial institutions under the Coronavirus Aid, Relief and Economic Security (CARES) Act, loans to support members’ customers who have been directly impacted by COVID-19, assisting mortgage servicers with required investor remittances during borrower forbearance periods as well as deferring insurance premium payments and lease payments. Funds are available on a first-come, first-served basis.

In addition, the Community Investment Program (CIP) and Economic Development Program (EDP), which offer Advances at deep discounts, have expanded. Total funding for these programs is increased to $1.50 billion from $1.25 billion and the maturity requirement of one-year or greater will be temporarily suspended for COVID-19 related activity initiated by September 30, 2020. These Advances can be used to support COVID-19 related assistance by all Fifth District members, including loans originated by member financial institutions under the CARES Act, loans to support members’ customers who have been directly impacted by COVID-19, assisting mortgage servicers with required investor remittances during borrower forbearance periods as well as deferring insurance premium payments and lease payments. CIP and EDP changes are effective immediately.

“FHLB Cincinnati remains dedicated to meeting members’ funding needs so they may in turn support the housing finance, small business lending and community development needs of their communities,” said Andrew S. Howell, President and CEO. “In any and all operating environments, the FHLB is focused on remaining a reliable partner to our members. Working together, we will meet the challenges presented by the current environment.”