FHLB of San Francisco offers aid for banks fighting pandemic strains
WASHINGTON — The Federal Home Loan Bank of San Francisco announced $10.7 billion in resources for its member financial institutions in response to financial strains from the coronavirus pandemic.
Among the products the bank introduced Friday are a new zero-interest loan, match funding for nonprofit organizations and small businesses, and additional funding for economic development grants.
“The new funding tools and additional resources we are announcing today, totaling more than $10 billion, are designed to help our members help their communities meet immediate local needs, and also to support the longer journey to recovery from the financial aftershocks of the pandemic,” Stephen Traynor, acting president and CEO of the Federal Home Loan Bank of San Francisco, said in a press release.
Through the bank’s COVID-19 relief and recovery loan products, members can obtain either a six-month or one-year zero-interest loan up to $10 million to provide financial relief to business owners or other customers seeking assistance due to the pandemic.
The bank can issue a total of $3.36 billion in recovery advance loans through the program, which will be available for members until May 29.
Additionally, the San Francisco bank is supplying an additional $5 billion for its existing community and economic development credit programs.
The bank has also allocated an additional $1 million to its Access to Housing and Economic Assistance for Development — or AHEAD — program.
The program, for which the bank had already allocated $1.5 million in 2020, provides grants between $20,000 and $50,000 for “innovative projects and programs that benefit lower-income people, neighborhoods and communities,” the bank said.