President's Message: Covid-19 Relief Advances
April 21, 2020
COVID-19 Relief Advances
To assist our members and housing associates with their funding needs related to the COVID-19 pandemic, FHLBank Topeka is making available a special advance offering consisting of the following:
- $1.5 billion in zero cost 6-month advances
- $1.5 billion in 6-month to 2-year maturity advances that are priced at FHLBank’s debt cost
FHLBank has established specially priced COVID-19 Relief Advances to support loans made by members under the Coronavirus Aid, Relief and Economic Security (CARES) Act, as well as members’ customers who have been directly impacted by COVID-19.
We realize some small businesses in your community may not have received Paycheck Protection Program (PPP) loans but are still struggling to stay afloat. These advances are an additional opportunity to help these businesses in your community.
The discounted advances provide economically beneficial terms to FHLBank members and housing associates and will be made available on a first-come, first-served basis, subject to the applicable member caps. Funding under these programs will be available beginning Wednesday, April 22, 2020, at 9 a.m. CDT and continue until the funds are exhausted or June 30, 2020, whichever occurs first. Because we anticipate a high level of interest in these advances, they will be available daily until noon CDT to allow sufficient time to process and wire funds.
Maximum Borrowing Amounts
Because the demand for these specially priced advances is expected to be high, per institution caps have been established as follows:
- $3 million per member or housing associate on the zero cost 6-month advance offering; and
- $5 million per member or housing associate on the at-cost 6-month to 2-year maturities.
Proceeds of these advances may be utilized for, but are not limited to:
- Funding Small Business Administration (SBA) loans as prescribed under the 2020 CARES Act.
- Funding other activities associated with the COVID-19 pandemic, which may include but are not limited to:
- Servicing advances associated with payment deferrals.
- Supplementing other delays in payments associated with the ordinary course of business.
- Facilitating other activities to supplement cash flow disruption of members and their customers.
- For insurance companies, activities such as deferring premium payments for customers or taking other measures to enhance the cash flow of customers will qualify.
- Other activities to assist customers and communities may qualify and members are encouraged to contact FHLBank to discuss other uses that may qualify.
How to Request an Advance
Members and housing associates are asked to complete the COVID-19 Relief Advances Certification Form prior to accessing advances. The certification also contains additional detail on how requests will be processed.
The form can be authorized by individuals that have borrowing authority and can be submitted via email to FHLB_ProdAdmin@fhlbtopeka.com. Upon submission of this form, a Lending officer will contact you to draw the advance. Certifications will be processed in the order they are received.