• The ESA allows for a broad and diverse range of projects and initiatives to qualify through expanded eligibility criteria without geographic or income restrictions.

• The ESA can provide long-term financing, which can mitigate interest-rate risk, and lock in spreads through a match-funding structure.

• A streamlined application process ensures ease-of-use and an expeditious transaction.

• Financing of projects, small businesses, or organizations directly or indirectly benefiting from government stimulus funding programs resulting from the Housing and Economic Recovery Act of 2008 (HERA) and the American Recovery and Reinvestment Act of 2009 (ARRA).

• Funding for newly developed, existing, and special products, or self-directed initiatives that preserve or create jobs to create economic growth through targeted activities.

• Financing that puts foreclosed properties back into productive use, including bridge, construction, and permanent lending that contributes to the stabilization and revitalization of neighborhoods. This includes initiatives making use of federal Neighborhood Stabilization Program funds.

Did you know that the ESA can also be used for bridge-loan financing?

Applicants are required to provide a description of the initiative to be funded by the ESA that identifies the specific features that meet the above-noted eligibility components.

The ESA is available in maturities with one month and longer. Two kinds of ESA products are always available: Classic and Amortizing.

• Classic advances are fixed-rate advances with interest due monthly and principal due at maturity.
  
  
• Amortizing advances are fixed-rate advances with monthly payments of interest and principal. Principal-amortization periods range from two through 30 years.

• Members must take down an ESA within six months of the date of approval, unless the application included an approved request for a longer take-down period.
• Once the application has been approved, the member calls our Money Desk to take down the funds.

• The ESA is a temporary program with an initial funding cap of $500 million and is set to expire on December 31, 2011. The Bank has the discretion to increase the cap and extend the program beyond its expiration date.  

• An initial $25 million per member limit has been established.
  
  
• FHLB Boston reserves the right to limit the total amount of ESAs available or to limit the number of ESAs available per member.

• If a member is unable to take down an FHLB Economic Stimulus Advance within the specified take-down period, the member may submit a written request for an extension.

• Requests for extensions will be considered on a case-by-case basis.

• To guard against rising interest rates, members may purchase a forward rate commitment to lock in the current rate for disbursement on a future date. Members may call our Money Desk for pricing information on forward rate commitments.

• FHLB Boston does not require any reporting on an ESA, but it does reserve the right to monitor compliance with the certifications made in the application for the advance.

• When making a loan using the funds from an ESA, the member is encouraged to pass the cost benefit on to the end borrower.
  

The ESA is administered by FHLB Boston’s Housing and Community Investment department which will review applications within five business days.

Members can apply here for an ESA.  

For more information about the ESA program, please see the ESA Technical Assistance Training (PDF), or contact Paulette Vass, community development advance manager at 888-424-3863; paulette.vass@fhlbboston.com; your relationship manager; or your community investment manager.