Community Lending Programs
CLP Advance Rates Lowered and Commitment Limit Expanded
Members can take advantage of the Community Investment Program ("CIP") to gain access to the lowest-priced HLB funding for the financing of community and economic development projects that create housing, improve business districts and strengthen neighborhoods. These funds are available daily throughout the year in the form of CIP Advances and CIP Letters of Credit ("CIP L/C"). CIP Advances feature the lowest advance rates available on a daily basis and can be amortizing, bullet or custom-structured.
The HLB also offers its members two low-cost advance programs specifically designed to finance the economic development needs in your community: the Rural Development Advance ("RDA") and the Urban Development Advance ("UDA"). Suitable RDA and UDA uses include: commercial, small business, manufacturing, social service, and public facility projects and activities as well as the construction or rehabilitation of public or private infrastructure, such as roads, utilities, and sewers.
Eligible Uses of Community Development Funds:
Use a CIP Advance or CIP L/C to:
- Finance housing for families or individuals with incomes at 115% or less the area median income
- Finance economic development projects that benefit low- and moderate- income households at or below 80% of the area median income
Use an RDA to:
- Finance economic development projects in areas with a population of 25,000 or less that benefit families at or below 115% of the area median income
Use a UDA to:
- Finance economic development projects in areas with a population greater than 25,000 that benefit families at or below 100% of the area median income