FHLBank Chicago Launches Enhanced Community Advance to Boost Affordable Housing Supply and Local Development

Streamlined solution delivers faster approvals, expanded eligibility and up to 200 basis points in savings for community projects

CHICAGO--(BUSINESS WIRE)--The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced the launch of its enhanced Community Advance product, backed by $10 million in interest rates subsidies for 2025 to help member institutions fund affordable housing, support small businesses, and expand access to capital in underserved communities.

Responding to member feedback, FHLBank Chicago has consolidated multiple products into one streamlined offering with an improved application experience and expanded eligibility. The enhanced Community Advance provides significant benefits, including:

• $10 million in subsidies available for 2025
• Interest rate discounts of up to 200 basis points
• Faster approvals through a frictionless online application
• No match funding or retention requirements
• Expanded eligibility for housing, small business loans, and partnerships with Community Development Financial Institutions (CDFIs)

What’s New

Members can finance loan originations to, or purchases of loans from, non-depository Community Development Financial Institutions (CDFIs) and nonprofit mortgage originators. All eligible small business loan originations now qualify with no area median income limit. Expanded eligibility also now includes mortgage-backed securities, mortgage revenue bonds and low-income housing tax credits.

This product offers tiered subsidized discounts based on financing type, including housing construction and rehabilitation loans, and funding for non-depository CDFIs and nonprofit mortgage originators. Advances are available in both floating and fixed rate advances, with no match funding requirements.

Why It Matters

"The enhanced product reflects our commitment to being a responsive partner," said Michael Ericson, President and CEO, FHLBank Chicago. "By streamlining our approach and expanding eligibility, we're ensuring our members have the tools and flexibility to make meaningful investments that strengthen communities across Illinois and Wisconsin."

The Community Advance also complements other existing FHLBank Chicago products, including the Downpayment Plus^® (DPP^®) Program and Housing Impact Grid within the Mortgage Partnership Finance^® (MPF^®) Traditional Program, creating greater value and community-building benefits for members and their communities.

Get Started

Members can use the online subsidy calculator to estimate their available discount when applying. For more details, visit FHLBank Chicago’s Community Advance page.

This $10 million investment underscores FHLBank Chicago's ongoing commitment to innovative funding solutions that help member institutions bolster affordable housing supply and strengthen communities across our region.

About the Federal Home Loan Bank of Chicago

FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.

“Downpayment Plus,” “DPP,” “Mortgage Partnership Finance,” and “MPF,” are registered trademarks of the Federal Home Loan Bank of Chicago.