CIP / EDF

    Important Changes to CIP/EDF

    On January 1, 2013, the Seattle Bank implemented two important changes to the CIP/EDF application process.

    With these changes, Seattle Bank members applying for a CIP/EDF discount must:

    • Submit a completed CIP/EDF – Required Loan Funding Information form for the Seattle Bank’s approval at least one business day prior to the effective date of the advance.
    • Draw the CIP/EDF advance within 90 calendar days of funding the qualifying loan.

    Please contact Mandie Ludlam in our Community Investment Department with any questions regarding the bank’s CIP/EDF, or to find out if a prospective loan or investment would qualify under the program.

    The Seattle Bank offers two programs that provide discounted funding to Seattle Bank members supporting affordable housing and economic development initiatives in their communities:

    • The Community Investment Program (CIP) offers reduced-rate funding for affordable single- and multi-family housing, including manufactured housing.
    • The Economic Development Fund (EDF) offers reduced-rate funding for community economic development, including: small businesses; commercial, industrial, manufacturing, social service, and public facility projects and activities; and public or private infrastructure projects, such as roads, utilities, and sewers.

    CIP/EDF advances may also be used to finance investments in low-income housing tax credits, mortgage-backed securities, and mortgage revenue bonds, as well as to invest in loan consortia if the underlying loans are CIP/EDF eligible.

    CIP/EDF advances may be used to finance an eligible loan—or pool of eligible loans—originated by a Seattle Bank member no more than 90 days prior to the effective date of the CIP/EDF advance.

    CIP/EDF advances are available in terms from three to 30 years with fixed or variable rates. The Seattle Bank may make funds available for short-term CIP/EDF advance from time to time. Currently, CIP/EDF advances are available with terms ranging from 12 to 35 months.

    Eligibility

    CIP funding must benefit households earning up to 115 percent of area median income

    EDF funding must benefit at least one of the following:

    • Rural areas at or below 115 percent of area median income or urban areas up to 100 percent of area median income
    • Projects in which at least 51 percent of the services provided or jobs created or retained are for households with incomes at or below 115 percent of area median income in rural areas or 100 percent of area median income in urban areas
    • An Indian area, as defined by NAHASDA, Alaskan Native Village, Native Hawaiian Homeland, federally or state-declared disaster area, an area that is eligible for a Brownfield Tax Credit, or an area affected by a military base closing and that is a “community in the vicinity of installation” area as defined by the Department of Defense.
    • Small businesses that meet the following Small Business Administration definition: “A small business is a concern that is organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Further, the concern cannot be dominant in its field, on a national basis. Finally, the concern must meet the numerical small business size standard for its industry.” Please refer to the “Table of Small Business Size Standards (pdf),” to confirm whether a project qualifies as a small business under this definition.

    Projects funded with CIP/EDF advances may also benefit from a discount on our Standby Letters of Credit (LOCs), which provide Seattle Bank members with an efficient and low-cost way to secure contractual agreements with third parties and guarantee their financial strength to perform as agreed in a contract. Standby LOCs may be issued for up to 20 years when used to finance housing or to support an interest-rate swap and may be secured with a variety of collateral types.

    Application

    Funding is available continuously through a noncompetitive application process. To apply, please complete and submit the CIP/EDF Application (pdf).

    For more information on CIP/EDF, contact Community Programs Analyst I Mandie Ludlam at 206.340.2389.