The HLB has made significant pricing changes to Community Lending Program (“CLP”) advances and has restructured the lending parameters of the program to make it more advantageous for our members. These changes apply to the Community Investment Program (”CIP”), Rural Development Advance (”RDA”), and Urban Development Advance (”UDA”).
In the past, CLP rates were priced 8 bps above HLB cost of funds to factor in administrative costs. Now members can borrow at the HLB’s actual cost of funds! This added benefit can help our members be more competitive in their markets as well as assist with their asset/liability management by match funding or pool funding assets.
Furthermore, in an effort to add more value for our members, the HLB has expanded the commitment limit on all CLP advances. Now members can submit CIP, RDA, and UDA requests up to the greater of 5% of their advances outstanding or $100 million. The new structure applies to both Project-Specific and Program-Specific commitment requests combined. With Program-Specific lending, all loans originated within the parameters of the approved lending program may be submitted for funding. Loans that were originated prior to the submission of a Program-Specific application are eligible for funding as long as the loans were originated within three months of the requested date.