WASHINGTON, April 26, 2005 (PRIMEZONE) -- The Federal Home Loan Bank of Des Moines is making a $500 million capital investment in rural America over the next five years. The announcement was made today in the nation's capital at a major policy forum sponsored by the Bank.
With its new Rural Capital Advance program, the Home Loan Bank will set aside $100 million each year for its five states -- Iowa, Minnesota, Missouri, North Dakota, and South Dakota. The funds will be available for banks to loan locally and will be earmarked for rural economic development.
"As the Home Loan Bank that serves hundreds of Main Street banks in small towns, it is important that we work with our members to support and stimulate economic growth in rural America," said Pat Conway, president of the Federal Home Loan Bank of Des Moines. "The lack of investment capital for rural development inspired the Rural Capital Advance. Hopefully, our program will encourage others to invest in rural America."
The Rural Capital Advance is an outgrowth of the Home Loan Bank's 2004 landmark symposium where a broad cross-section of rural experts and officials stressed the need for more investment capital in rural areas. The advance can be used for many ventures, including business start-ups, business expansions, community facilities and quality of life projects.
Conway cites the example of two partners interested in starting a Main Street business. They have $15,000 in owner equity towards the purchase and outfitting of a building. The Home Loan Bank member is able to finance $35,000, the remainder of the start-up costs, with a Rural Capital Advance.
The Bank's Washington event, "Capitalizing on Rural America: A Policy Forum," featured members of Congress in a Socratic Dialogue facilitated by legendary Harvard law professor Arthur Miller. Dr. Miller engaged the panel of policymakers in a wide-ranging discussion of key issues facing rural America and policies and programs that have an impact on these. Iowa Senator Chuck Grassley and Senator Tom Harkin hosted the one-day forum.
For more information on the Rural Capital Advance, contact Angie Richards at 800.544.3452, ext. 1014 or arichards@fhlbdm.com.
The Federal Home Loan Bank of Des Moines is a $50 billion wholesale bank with more than 1,200 members which include commercial banks, saving institutions, credit unions and insurance companies. The Bank is owned by its members and receives no taxpayer funding. The Des Moines-based Bank serves Iowa, Minnesota, Missouri, North Dakota, South Dakota, and is one of 12 regional banks that make up the Federal Home Loan Bank System.