DALLAS, Sept. 24, 2008 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Dallas (Bank) announced today that it will make $5 million in funds available for special disaster relief grants for homes and businesses affected by Hurricanes Gustav and Ike. The Bank will also continue to make advances to support recovery efforts in the affected areas through its Disaster Relief Program.
Additionally, on behalf of its member institutions, the Bank is making a $1 million corporate donation to The Salvation Army and the American Red Cross for relief efforts to help communities affected by the hurricanes. Each organization will receive $500,000.
The grants will be available for households and small businesses in major disaster areas, as designated by the Federal Emergency Management Agency.
"Our member institutions have been very proactive in lending their support to the communities that have been impacted by these two hurricanes, and these grants will extend their ability to help individuals, families and businesses disrupted by these storms," said Terry Smith, the Bank's President and CEO. "Our contributions to The Salvation Army and the American Red Cross will further support efforts to rebuild."
The Bank has established two special grant programs -- the Housing Disaster Relief Grant (HDRG) Program and the Economic Development Disaster Relief Grant (EDDRG) Program.
Under the HDRG Program, the Bank will make available $1.75 million in grants for households affected by Hurricane Gustav, and another $1.75 million in grants for households affected by Hurricane Ike. All member institutions that are eligible to obtain advances from the Bank may apply for HDRG grants in an amount up to $250,000 per hurricane.
Under the EDDRG Program, the Bank will make available $750,000 in grants for businesses affected by Hurricane Gustav, and another $750,000 in grants for businesses affected by Hurricane Ike. To qualify for an EDDRG grant, a hurricane-affected business must qualify as a "small business" as defined by the Small Business Administration. All member institutions that are eligible to obtain advances from the Bank may apply for EDDRG grants in an amount up to $100,000 per hurricane.
The Bank will begin accepting applications for the housing and economic development grant funds for Hurricanes Gustav and Ike on October 1, 2008 and October 8, 2008, respectively.
All grants will be awarded on a first-come, first-served basis until all funds are exhausted.
In addition to the special disaster relief grant programs, the Bank's Disaster Relief Program (DRP) will offer advances to the Bank's members for an extended period of one year to assist businesses and households affected by Hurricanes Gustav and Ike. DRP advances are priced 10 basis points below the Bank's Community Investment Program/Economic Development Program advance rates, which are already priced at the Bank's cost of funds.
For more information or a list of the Bank's members, please visit the Community Investment section on the Bank's web site at fhlb.com/community.
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. The Bank, with total assets of $76.2 billion as of June 30, 2008, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the Bank's web site at fhlb.com.
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