April 23, 2020 / Source: FHFA

News Release

FHFA Supports Small Business by Allowing Federal Home Loan Banks to Accept Paycheck Protection Program Loans as Collateral

FOR IMMEDIATE RELEASE

4/23/2020

​Washington, D.C. – To support small and community banks, the Federal Housing Finance Agency announced that Federal Home Loan Banks (FHLBanks) can accept Paycheck Protection Program (PPP) loans as collateral when making loans, called advances, to their members.

FHLBanks can accept loans guaranteed by the Small Business Administration under PPP provided FHLBanks comply with certain safety and soundness requirements. On April 3, the Small Business Administration launched PPP, a $349 billion emergency loan program. Congress is currently considering increasing the funding available through PPP.  

To date, the FHLBanks have been able to meet the needs of their members, especially small and community banks, during the COVID-19 national emergency. Accepting PPP loans will provide additional liquidity for small and community banks to borrow from their FHLBank to support the small businesses in their communities. See the Supervisory Letter here.

To see the actions FHFA has taken to help Americans impacted by the coronavirus remain in their homes please visit FHFA's Webpage on Coronavirus Actions​. ​

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.

Contacts:

Media:   Raffi Williams Raffi​​[email protected]