Economic Development Programs
The Community Investment Cash Advances (CICA) programs offer funding, often at below-market interest rates and for long terms, for members to use to provide financing for projects that are targeted to certain economic development activities. These include commercial, industrial, manufacturing and social services projects, infrastructure, and public facilities and services. CICA lending is targeted to specific beneficiaries, including small businesses and certain geographic areas. Two types of CICA programs benefit households at specified income levels. These are:
• Rural Development Funding (RDF): Projects in rural areas for beneficiaries with incomes at or below 115% of the area median income;
• Urban Development Funding (UDF) Program: Projects in urban areas for targeted beneficiaries with incomes at or below 100% of the area median income; and
In addition, FHLBank members may obtain advances through the Community Investment Program (CIP) to finance projects located in low- or moderate-income (80% of ara median income) neighborhoods or that benefit low- or moderate-income families. (The CIP is also used for affordable housing. For more information, go to affordable housing program page.)
Currently, all the FHLBanks offer CIP and one or more types of CICA programs for economic development. (see FHLBanks' Community Investment Officers and Community Investment Programs.) Members may use the proceeds of CICA funding to finance targeted economic development projects directly (loan originations and purchases) or indirectly (lending to other lenders for eligible purposes). Each FHLBank has a Community Lending Plan, in which its program objectives for economic development are described. Approved “housing associates” (non-member lenders such as state housing finance agencies and tribal housing authorities) may use certain CICA programs.
Review the following links to obtain additional information about CICA/CIP for economic development at the FHLBanks.
FHLBank Community Lending Plans