2017 Economic Development Program Plus

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1 2017 Economic Development Program Plus

2 Agenda Federal Home Loan Bank of Dallas Community Investment Mission 2017 EDP Plus Allocation Amount and Program Revisions Overview of the Economic Development Program Overview of the Economic Development Program Plus Walk-Through of the EDP Plus Application 1

3 Community Investment It s Our Mission: The Federal Home Loan Bank of Dallas (FHLB Dallas) is a member-owned financial intermediary with the primary mission of supporting homeownership, affordable housing, and community lending through its member institutions. 2

4 Agenda Federal Home Loan Bank of Dallas Community Investment 2017 EDP Plus Allocation Amount and Program Revisions Overview of the Economic Development Program Overview of the Economic Development Program Plus Walk-Through of the EDP Plus Application 3

5 2017 EDP Plus Allocation Amount and Program Revisions FHLB Dallas has allocated $750,000 to the Economic Development Program Plus (EDP Plus ) grant program for Maximum EDP Plus Per-Grant Amount $20,000 or no more than 10 percent of the related EDP advance, whichever is less $25,000 or no more than 15 percent of the related EDP advance, whichever is less Annual Member Maximum $80,000 $100,000 Small Business Requirements Small Business Requirements The member certifies on the application that the small business is contributing an amount at least equal to 10 percent of the member's EDP advance. The recipient is not required to work with a Small Business Development Center (SBDC) or provide a reference letter from the SBDC. The small business provided evidence of equity in an amount at least equal to 15 percent of the member's EDP advance. The recipient was required to work with an SBDC and provide a reference letter at the time of application. Additional information is available online at fhlb.com/community 4

6 Agenda Federal Home Loan Bank of Dallas Community Investment 2017 EDP Plus Allocation Amount and Program Revisions Overview of the Economic Development Program Overview of the Economic Development Program Plus Walk-Through of the EDP Plus Application 5

7 Economic Development Program (EDP) FHLB Dallas Submit EDP Application Member Submit Loan Application Borrower Favorably Priced Advance Favorably Priced Loan 6

8 Economic Development Program (EDP) Favorably priced advances to support the financing of economic development projects in targeted communities Eligible Uses of Funds Include: Financing for commercial, industrial, social service, and public facility projects Small business financing Terms Advance terms from three months to 30 years Amortizing, fixed-, and floating-rate advance structures Features Available three-month rate locks on advance commitments Noncompetitive, year-round funding 7

9 EDP Project Qualifications Defined Qualifications Native American areas Federal- or state-approved disaster areas Areas affected by federal military base closings Small businesses as defined by the Small Business Administration 8

10 EDP Project Qualifications Targeted Income Location Urban areas (population > 25,000) Up to 100 percent of the Area Median Income (AMI) Rural areas (population < 25,000) Up to 115 percent of AMI Wages 51 percent of project employees have incomes at or below 80 percent of AMI Services 51 percent of families who benefit or are provided services by the project have incomes at or below 80 percent of the AMI 9

11 Agenda Federal Home Loan Bank of Dallas Community Investment 2017 EDP Plus Allocation Amount and Program Revisions Overview of the Economic Development Program Overview of the Economic Development Program Plus Walk-Through of the EDP Plus Application 10

12 Economic Development Program Plus (EDP Plus ) FHLB Dallas Submit EDP and EDP Plus Applications Member Submit Loan Application & Business Plan Borrower Favorably Priced EDP Advance and EDP Plus Grant Favorably Priced Loan and EDP Plus Grant 11

13 EDP Plus Grant Program First-come, first-served noncompetitive grant program designed to promote small business development EDP Plus grant must be used in conjunction with an EDP advance with a term of at least one year Examples of how an EDP Plus grant may be used by a small business: Purchase, construct, or expand buildings Purchase machinery and/or equipment Acquire working capital Cover closing costs 12

14 EDP Plus Grant Program EDP Plus grants may constitute no more than 10 percent of the EDP advance amount, up to a maximum of $20,000 Documentation required from the small business owner: Business Plan Member must certify that the small business owner has contributed an amount equal to at least 10 percent of the institution s EDP advance Member institutions are eligible for up to $80,000 in EDP Plus grants annually The interest rate mark-up on loans being made with the corresponding advance cannot exceed 400 basis points 13

15 Agenda Federal Home Loan Bank of Dallas Community Investment 2017 EDP Plus Allocation Amount and Program Revisions Overview of the Economic Development Program Overview of the Economic Development Program Plus Walk-Through of the EDP Plus Application 14

16 Applying for EDP Advances and EDP Plus Grants Contacts Member Services 844.FHL.BANK ( ) Additional information is available online at fhlb.com/community 15

Federal Home Loan Bank of Des Moines

Federal Home Loan Bank of Des Moines Community Investment Programs November 2013 Introduction Phil Everitt Des Moines Vice President Member Services Stacy Snyder Des Moines Rental Housing Manager History