DES MOINES, Iowa, Sept. 20, 2005 (PRIMEZONE) -- Several rural communities have taken advantage of a new program introduced by the Federal Home Loan Bank of Des Moines in May. In four short months, Bank members throughout Iowa, Minnesota, Missouri, North Dakota and South Dakota have already reserved more than $78 million in Rural Capital Advances. The low-cost funds have been used to finance housing and economic development projects in rural areas.
"I'm pleased that our members understand the importance of this new program and have used it to support their rural communities," commented Home Loan Bank President and CEO Patrick Conway. "Not only is $78 million a boost to rural economies throughout our District, it demonstrates the commitment of our community bank members."
The Bank's new Rural Capital Advance (RCA) was announced during its Capitalizing on Rural America Policy Forum in Washington, D.C. in April. The Bank committed to setting aside $100 million a year for five years, a total of $500 million, to support and stimulate economic growth in rural America. Of the first $100 million, $10 million is reserved for each of the five states in the Bank's District to ensure that each state gets some of the pool. After a state uses its $10 million, the other $50 million pool is available to members on a first come, first serve basis.
"The Bank's goal was to disburse the first $100 million by the end of this year," noted Chief Operating Officer Amy Angle. "We are well on our way to reaching this goal and excited that three states in our District -- Iowa, Minnesota and Missouri -- have used much more than their initial reserve pool of $10 million. We encourage our members in North Dakota and South Dakota to do the same."
Rural Capital Advances are being used for new construction, business expansion, historic preservation and much more throughout the Bank's District. From the purchase and expansion of a printing company in Orange City, Iowa to agricultural lending in Devil's Lake, North Dakota and a new hunting lodge in Philip, South Dakota, Home Loan Bank members are supporting economic development in their rural communities with the RCA. For information on specific projects in your state, please contact Angie Richards at 800.544.3452, ext. 1014.
For more information on the RCA, please visit the Bank's website at www.fhlbdm.com or contact the Bank's Community Investment Department at 800.544.3452, ext. 1173.
The Federal Home Loan Bank of Des Moines is a AAA-rated wholesale bank that provides low-cost short and long-term funding and community lending to more than 1,200 stockholder commercial banks, saving institutions, credit unions and insurance companies. The Bank is wholly owned by its members and receives no taxpayer funding. The Des Moines Bank serves Iowa, Minnesota, Missouri, North Dakota and South Dakota and is one of twelve regional Banks that make up the Federal Home Loan Bank System.