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8-K - FEDERAL HOME LOAN BANK OF NEW YORK - Federal Home Loan Bank of New York | form_8-k.htm |
FOR
IMMEDIATE RELEASE
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CONTACT:
Brian Finnegan
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May 1,
2020
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(212)
441-6877
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FEDERAL HOME LOAN BANK OF NEW YORK
ANNOUNCES COVID-19 RELIEF PROGRAM
- FHLBNY response includes a combination of charitable donations,
grants, subsidized advances and $1 billion in available Disaster
Relief Funding -
New
York, NY – In response to the COVID-19 pandemic, the Federal
Home Loan Bank of New York (“FHLBNY”) has announced a
targeted suite of tools to assist its members and community
partners respond to the needs of individuals, households,
non-profit organizations and small businesses across the
FHLBNY’s District. The FHLBNY’s COVID-19 Relief Program
includes $1 billion in disaster relief funding, $5 million in small
business grants, and $500,000 in charitable donations, all of which
are scheduled to be deployed in May 2020. In addition to these
near-term efforts, the FHLBNY will invest $1 million to provide
zero percent funding to members lending to small businesses through
its Business Development Advance when the product is launched later
in the year.
“The
COVID-19 pandemic has affected virtually every community, household
and person across our District, presenting unprecedented and
formerly unimaginable challenges,” said José R.
González, president and CEO of the FHLBNY. “And yet,
across our District, we see our members and housing and community
partners rise to meet these challenges doing all that they can to
support their customers, neighbors and communities. At the Federal
Home Loan Bank of New York, we are driven by our community-focused
mission, and we are honored to help support these efforts with the
programs we announce today.”
The
FHLBNY will make $1 billion in Community Investment Cash Advance
Disaster Relief Funding available to members through its Community
Lending Programs, to be used as both immediate gap financing and
longer-term funding to help communities and customers respond to
and recover from the COVID-19 pandemic. These low-cost loans can be
used by the FHLBNY’s members to support critical relief and
recovery financial activities, and meet the short-, medium-, and
long-term funding needs of affected communities. The FHLBNY
previously made similar disaster relief funding available following
the 2017 hurricanes that devastated Puerto Rico and the U.S. Virgin
Islands, and has offered disaster relief funding following natural
disasters across its District, most notably following Hurricane
Sandy in 2012, when members accessed $850 million in disaster
relief funding to assist relief efforts in New Jersey and New
York.
The
FHLBNY will make $5 million in grants available through its Small
Business Recovery Grant (“SBRG”) Program to provide
working capital to affected businesses across the District. Through
the SBRG Program, members will be able to provide grants of up to
$10,000 to qualifying small businesses and non-profit organizations
which have suffered a significant loss of revenue related to the
pandemic. The FHLBNY previously offered the SBRG Program as part of
its Disaster Recovery Grant Programs in Puerto Rico and the U.S.
Virgin Islands in response to the 2017 hurricanes.
The
FHLBNY will provide $500,000 in charitable contributions to a
number of organizations working on the front lines of the pandemic.
This includes contributions of $75,000 each to CAMBA, Inc., the
Housing and Community Development Network of New Jersey, the New
York State Rural Housing Coalition and the Community Development
Corporate of Long Island to help support homeless and housing
shelter facilities in New York City, New Jersey, upstate New York
and Long Island. The FHLBNY will also provide contributions of
$50,000 each to the YWCA of Rochester & Monroe County, The
Gateway Family YMCA, the United Way of Puerto Rico and Food Bank
For New York City to help support their efforts to assist
vulnerable populations in New York, New Jersey and Puerto Rico.
Many of these organizations are represented on the FHLBNY’s
Affordable Housing Advisory Council (“AHAC”), and the
FHLBNY engaged its AHAC to determine how best to support its
District’s most vulnerable populations in this challenging
time.
In
addition to these near-term efforts, the FHLBNY will also invest $1
million to provide an interest rate subsidy in the form of a zero
percent advance for its Business Development Advance
(“BDA”), which the FHLBNY expects to start offering in
the fourth quarter of 2020. When launched, the BDA can be leveraged
into valuable and significant lending opportunities – for
example, at current interest rates, this $1 million subsidy can be
leveraged by members into more than $100 million of one-year loans
for small businesses in communities across New Jersey, New York,
Puerto Rico and the U.S. Virgin Islands.
Federal Home Loan Bank of New York
The Federal Home
Loan Bank of New York is a Congressionally chartered, wholesale
Bank. It is part of the Federal Home Loan Bank System, a national
wholesale banking network of 11 regional, stockholder-owned banks.
As of March 31, 2020, the FHLBNY serves 322 financial institutions
in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands.
The Federal Home Loan Banks support the efforts of local members to
help provide financing for America’s
homebuyers.
# # #
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This
report may contain forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These statements are based upon our current
expectations and speak only as of the date hereof. These statements
may use forward-looking terms, such as "projected," "expects,"
"may," or their negatives or other variations on these terms. The
Bank cautions that, by their nature, forward-looking statements
involve risk or uncertainty and that actual results could differ
materially from those expressed or implied in these forward-looking
statements or could affect the extent to which a particular
objective, projection, estimate, or prediction is realized. These
forward-looking statements involve risks and uncertainties
including, but not limited to, the Risk Factors set forth in our
Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q
filed with the SEC, as well as regulatory and accounting rule
adjustments or requirements, changes in interest rates, changes in
projected business volumes, changes in prepayment speeds on
mortgage assets, the cost of our funding, changes in our membership
profile, the withdrawal of one or more large members, competitive
pressures, shifts in demand for our products, and general economic
conditions. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to revise or update
publicly any forward-looking statements for any
reason.