SPONSORED — The U.S. Chamber of Commerce estimates that there are 33.2 million small businesses across the country and over the past 20 years, small businesses have accounted for roughly 40 percent of gross domestic output – trillions of dollars of economic activity. The Federal Home Loan Banks (FHLBanks) play a critical role in supporting small businesses by providing affordable financing options, fostering economic development, and enhancing access to credit.

Through the Community Investment Program (CIP) and the Community Investment Cash Advance (CICA) program, the FHLBanks offer low-cost financing to their members, including their credit unions. These funds are used to offer affordable loans to small businesses, particularly in underserved or economically distressed areas. CIP and CICA loans can often be a game-changer, helping small businesses access capital for expansion, hiring, or operations, and fostering local economic development

Additionally, the FHLBanks have developed voluntary programs that are specifically designed to provide assistance to small businesses. Take for example FHLBank Boston’s Jobs for New England (JNE) program, which provides below-market-rate financing to members so they can offer low-interest-rate loans to small businesses. Last year, Triangle Credit Union in New Hampshire secured JNE funding to help an Italian restaurant purchase its location, assist a local doctor expand her naturopathic medical clinic, and a local businesswoman purchase a cross-fit training center. Through these efforts, Triangle Credit Union was able to retain 24 jobs and create 8 more. Since it was first launched in 2016, JNE has helped create or retain more than 12,000 jobs.

The Federal Home Loan Bank of New York’s Small Business Recovery Grant is a voluntary program that provides funding to businesses facing economic challenges. Last year, Finger Lakes Federal Credit Union was awarded a $50,000 block grant through the program, all of which was delivered to 11 eligible local small businesses and nonprofit organizations.

These are just two examples of FHLBank credit union members (of which there are more than 1,600) leveraging FHLBank programs to help small businesses and their local communities grow and prosper.