ATLANTA, Jan. 22, 2004 (PRIMEZONE) -- The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced awards of more than $3.3 million to 16 community partnerships to fund economic development initiatives in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina and Virginia. Total development costs associated with these projects exceeds $22 million, and the FHLBank Atlanta will provide more than $12 million in below-market rate loans to support them.
Awards are distributed in the form of below-market rate loans made by financial institutions that are members of the FHLBank Atlanta and have accessed its Economic Development Growth Enhancement (EDGE) program. EDGE significantly reduces the interest rates (and/or lengthens the terms) on loans in communities with incomes at or below 80 percent of the area median income. By lowering the cost of borrowing, FHLBank Atlanta makes it possible for community partners to create jobs, develop loan pools, renovate structures, and build community facilities that spur economic growth.
"EDGE awards give the Bank's partners momentum to move forward on projects that they might not otherwise find financially feasible," said Art Campbell, FHLBank Atlanta vice president of economic development. "Now in its fifth year of operations, the program is clearly living up to its tremendous potential."
FHLBank Atlanta is a cooperative that provides EDGE loans to member institutions, which submit applications as part of a competitive process. The reduced-rate loan is made to the member institution, which in turn lends to the community-based organization. The $3.3 million is the cost to the FHLBank Atlanta to "buy-down" the rate for the loans.
Award winners include the Corporation to Develop Communities of Tampa, Inc., which will receive an EDGE loan from Republic Bank to acquire and convert an abandoned 10,000 sq. ft. commercial building into a 20,000 sq. ft. facility to house a 100-seat call center. In Charlotte, N.C., Self-Help Credit Union will use an EDGE loan to renovate a 35,000 sq. ft. building that will house several nonprofits and provide space for performing arts, cultural and community events.
EDGE fosters partnerships between economic development entities, state and local governments, and other funding sources, as well as member financial institutions, which work together to develop low-cost financing for eligible projects. It was created in 1999 to benefit individuals and communities with incomes at or below 80 percent of the area median income.
Since the program's inception, the Bank has contributed nearly $17 million in awards to reduce interest rates on $56 million in loans to lower-income communities in the Southeast. The next EDGE offering is scheduled for mid-2004. To learn more, visit www.fhlbatl.com/edgewinners
About FHLBank Atlanta
The Federal Home Loan Bank of Atlanta is one of the 12 district banks in the Federal Home Loan Bank System. The $115 billion financial services organization provides low-cost financing and other banking services to more than 1,194 financial institutions in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia.