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Rural Development Advance

Rural Development Advance (RDA)

The Rural Development Advance (RDA) provides financing for economic development projects in rural areas that benefit individuals or families with incomes at 115% or less of the area median income. A rural area is defined as a unit of general local government with a population of 25,000 or less.

RDA funding is a non-competitive source of low-priced, medium-term funds that are available in the form of advances to Federal Home Loan Bank of New York (FHLBNY) member community lenders. As part of the suite of Community Lending Programs, RDA Advances are priced below regular FHLBNY advance rates. RDA Advances may be used to finance commercial and economic development projects that meet any of the geographic, individual, or small business criteria listed below:

Geographic Criteria

  • Located in a neighborhood with a median income at or below 115% of the area median income;
  • Located in a rural Champion Community, or a rural Empowerment Zone, or a rural Enterprise Community, as designated by the Secretary of USDA;
  • Eligible for a federal Brownfield Tax Credit;
  • Located in an Indian area, as defined by the Native American Housing Assistance and Self Determination Act of 1996;
  • Located in an area affected by a federal military base closing or realignment; and/or
  • Located in an area identified as a designated community under the Community Adjustment and Investment Program
  • Located in a state declared disaster area, or other area that qualifies for assistance under another Federal or State targeted economic development program, approved by FHFA.

Individual Criteria

  • The annual salaries for at least 51% of the permanent full- and part-time jobs, computed on a full-time equivalent basis, created or retained by the project, other than construction jobs, are at or below 115% of the median income;
  • At least 51% of the families who otherwise benefit from (other than through employment) or are provided services by the project have incomes at or below 115% of the median income.

Small Business Criteria

  • Projects that qualify as small businesses as defined by section 3(a) of the Small Business Act and implemented by the Small Business Administration under 13 CFR Part 121.
  • Projects may qualify based on SBA’s size standards or if a project received an SBA Loan (Note: If a loan is qualified based on SBA Loan, a copy of the supporting loan documentation will be required at application).

Eligible Lending Activity

  • All loans within the submitted CLP Application must have closed within 90 days of receiving an advance from the FHLBNY.
  • Once a CLP Application is approved, a commitment will be issued for up to 90 days, based on the oldest loan in the loan pool (e.g., 90 days – oldest loan in the loan pool).

Member Limits*

  • A member’s Maximum Borrowing Capacity is the lesser of 3% of Asset size or $100 million. Members may request an exception to the maximum up to $200 million per member. Exception requests will be considered on a case-by-case basis.
  • A member’s Minimum Borrowing Capacity is $25 million per member.
  • Members may not borrow more than $100 million in each quarter.

*Note: Member Limits are inclusive of all CLP Programs except DRF and BDA. The FHLBNY reserves the right to change member limits at any time, without prior notice.


Advance Tenors**

  • Advance tenors for CLP advances are restricted to one (1) to five (5) years.
  • All FHLBNY credit conditions apply.

**Note: Applicable to CIP, UDA and RDA Program. See the Disaster Relief Program page for DRF related limits and advance tenors.

Examples of commercial and economic projects that qualify for RDA funding

  • Small business loans
  • Daycare centers
  • Manufacturing facilities
  • Retail stores
  • Mixed-use buildings
  • Healthcare facilities
  • Educational facilities
  • Warehouse facilities
  • Grocery stores
  • Equipment purchases for commercial expansion
  • Community services, such as fire stations and trucks
  • Acquisition, construction, refinancing or rehabilitation
  • Construction or rehabilitation of public or private infrastructure, such as roads, utilities, and sewers
  • Debt refinancing or consolidation for commercial business

Apply for Rural Development Advance program

Members must enroll in the CLP System to submit applications for CLP funds. Members can apply directly in the System or complete and upload the CLP Application below (with the requested detail for each submitted loan) into the System.

CLP Documents

CLP System User Guide Community Lending Programs System User Guide
CLP-001 Community Lending Programs Guidelines
CLP-002 Community Lending Programs Application

Contact Us

To learn more about our program, email:

[email protected]

RDA Success Stories

Member: HSBC Bank USA
Project Name: Parise's Auto & Towing and C.W. Cold Storage
Member: Sun National Bank
Project Name: Congress Hall