The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced enhancements to its Community Advance product, doubling the annual interest rate subsidy limit to $400,000 per member and increasing the discount available for eligible activity to 100 basis points. The updates give FHLBank Chicago members additional capacity to support affordable housing, small business lending, agricultural activity, and economic development across Illinois and Wisconsin.
Key enhancements include:
- A $400,000 annual interest rate subsidy limit per member, up from $200,000
- A 100 basis point discount tier for eligible new Community Advances, replacing the current 50 basis point tier
- Additional capacity for members to support affordable housing, small business lending, agricultural activity, and economic development
- Same flexible advance structures available for both fixed and floating rate advances
How Members Use Community Advances
Through the first half of 2026, more than $16 million in Community Advances were funded through Wolf River Community Bank, based in Hortonville, Wisconsin, to support housing, small businesses, and economic development.
“Community Advances give us another way to put our relationship with FHLBank Chicago to work for our communities,” said Austin Godwin, Banking Development Associate at Wolf River Community Bank. “The increased subsidy limit and deeper discount help us support housing builders, small businesses, and economic development opportunities while continuing to meet the needs we see locally every day.”
The enhanced 100 basis points tier applies to eligible activities that previously qualified for the 50-basis points discount, including affordable housing purchase and refinance loans, tax credit investments, small business and agricultural lending, and other qualifying economic development activities. The higher annual subsidy limit will allow members to fund larger or more frequent eligible advances before reaching their annual cap.
“As a member-owned cooperative, FHLBank Chicago is focused on delivering value through our members and helping them meet the needs of their communities,” said Carolyn Jaw, Chief Business Officer, FHLBank Chicago. “By increasing the annual subsidy limit and deepening the discount available for eligible activity, we are giving members more capacity to support affordable housing, small business lending, and local economic development.”
Since the Community Advance launched in 2025, members have used the product to finance affordable housing construction and rehabilitation, nonprofit mortgage originator and CDFI partnerships, small business lending, agricultural operations, and community development projects.
Members can contact their Sales Director or visit FHLBank Chicago’s Community Advance webpage for eligibility information and program resources.
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.
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