Paycheck Protection Program Loans (PPP) as collateralMay 04, 2020
Effective May 6, 2020, the FHLB of Cincinnati will expand its list of eligible collateral types to allow members to pledge loans that are guaranteed by the Small Business Administration pursuant to the Paycheck Protection Program (PPP). When pledged, borrowing capacity from PPP loans is added to that from all other sources of eligible collateral. There are no special Advance programs or Advance rates tied to these loans. The FHLB wants to make the pledge of PPP loans as simple as possible, however there are several unique requirements and constraints.
For full details on these changes, see our May 4 email, which can also be found in the Inbox within Members Only. The Addendum to the Blanket Security Agreement for purposes of pledging PPP, along with the template for reporting these loans to the FHLB, can be found on the "Collateral Forms and Documents" page in Members Only.
If you have any questions on completing these forms, please contact our Collateral Operations team at (800) 828-4191, or at CollateralOperations@fhlbcin.com. When calling in, please ask to speak to someone about pledging PPP loan collateral.