Classification: Internal

Classification: Internal

▪ Overview

▪ Program Changes

▪ How it Works

▪ How to Apply and Take Down Funding

▪ Benefits

Support

▪ Resources

▪ Our Team

▪ Questions

Agenda

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Classification: Internal

▪ JNE second funding round has been significantly modified to address

the COVID-19 impacts on small businesses

▪ Targets small businesses in need of financial assistance in addition

to or outside the federal Paycheck Protection Program (PPP)

▪ This round focuses solely on borrower loans for WORKING

CAPITAL

▪ Eligible borrowers are small businesses that qualify for funding under

the SBA’s PPP, including nonprofit organizations

▪ Funding available for all working capital needs; JNE does NOT

require the businesses to direct 75% of the funding to payroll

Jobs for New England

Working Capital Lending Program

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Classification: Internal

▪ A few important changes to note:

1. Program to be funded with up to $1 billion in zero-rate advances

2. Terms of either 6 months or 1-year on Classic Advances

3. Members may request up to $20 million

4. Members must report on the individual borrower loans within 30 days of

disbursement; unused funds must be returned to FHLBank Boston

5. Maximum interest rate to borrower is 2.00%

6. Members submit application for funding without specific loan(s)

7. Funding will be allocated on a first-come, first-served basis

8. Members can apply for both 6-month and 1-year advances, however

must submit separate applications

JNE Terms/Who Can Borrow

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Classification: Internal

Who can borrow:

Member

▪ Meets standard capital stock and collateral requirements and eligible for long-term advances

Borrowers

▪ Meets the SBA’s definition of small business under the PPP (includes nonprofits)

▪ Requires working capital financing that meets JNE loan eligibility requirements

Eligibility Requirements

▪ Individual borrower loans are capped at $5 million

▪ Funding must be used for working capital expenses only, including rent/mortgage, payroll, inventory, utilities, or other working capital need as determined by the member

Small Business Loan Eligibility Criteria

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Classification: Internal

▪ Three Key Steps:

▪ Step One: Apply

▪ Complete and submit online program application using your Community

Lending login to secure funds. New online users must create an account at this

site prior to submitting an application. NOTE: Account access approval may

take up to 48 hours.

▪ Step Two: Disburse

▪ FHLBank Boston will notify you via email of your available advance amount.

This amount will be a maximum of $20 million but could be lower depending

on overall demand. Member takes disbursement within 5 business days.

▪ Step Three: Report

▪ Submit list of small business loans made with JNE funding using FHLBank

Boston reporting template. Executed borrower promissory notes must be

included and any unused funds returned to FHLBank Boston.

How to Access JNE Funding

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Classification: Internal

The Funding Process

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• Round opens May 4, 2020 at 9:00 a.m. through July 31, 2020

• Applications approved on a first-come, first-served basis

• Notification of approval within 3 business days

• Program Change: Member submits application to fund a pool of loans

Application/Funding Period:

• Funds available for disbursement the day after notification of approval

• JNE advance must be disbursed within 5 business days of approval

• Submit specific project/borrower list and executed promissory notes within 30 days of disbursement

• The amount of any advance funds not used to fund eligible loans and/or for which required documentation is not provided to the Bank within 30 days after advance disbursement, must be repaid to the FHLBank Boston at that time

• No prepayment fee will be charged

JNE Advance Disbursement and Reporting:

Classification: Internal

How to Apply

Step 1

Step 2

Classification: Internal

▪ Apply through FHLBank Boston’s Community Lending Login

portal

▪ Indicate term (6 or 12 months) of JNE advance requested

▪ Confirm funds will be used only for eligible working capital

loans to PPP-eligible small businesses and nonprofits

▪ Sign and submit the application

▪ Approval within 3 days, funding available the day following

receipt of the approval notice

Reminder – this is an application to fund your own small

business loan pool. You are not submitting individual

borrower requests.

Online Application

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Classification: Internal

▪ Approval email will be sent within 3 days

▪ Email will include instructions on how to take down the zero-

rate JNE advance

▪ Advance will be available for disbursement the next

business day after notice of approval

▪ Member must call the Money Desk for the advance

▪ Disbursed funds will be credited to your IDEAL Way

account generally on the same or next business day

Disbursing Funds

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Classification: Internal

Reporting

Step 3

2020 JNE Program

Guidelines

Classification: Internal

Compliance Reporting Process

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Complete report within 30 days of disbursement

Confirm how funds were used and the rate charged to borrower (maximum of up to 2.00%)

Must include:Copy of borrower promissory note(s)

Complete spreadsheet of all loans made with JNE advance

Return advance funds that were not utilized in an eligible borrower loan and documented in the reporting process

Classification: Internal

How You Benefit

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Access no-cost funding –Zero-percent rate on Classic

Advances

Meet the immediate working capital needs of small

businesses

Fill lending gaps left by the Paycheck Protection

Program

Offer small business loans at introductory below-market rates; program allows rate

increase to borrowers following JNE term

Obtain a competitive small business lending advantage

Classification: Internal

Where to apply:

▪ https://housing.fhlbboston.com

More Information:

▪ http://www.fhlbboston.com/

communitydevelopment/jobs_ne

Resources

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Classification: Internal

Your relationship manager and our Housing and Community

Investment team are available to help you with the JNE program.

▪ 1-888-424-3863 (option 1)

Contacts:

▪ Michael Pingpank, Senior Community Investment Managermichael.pingpank@fhlbboston.com

(617) 425-9564

▪ Kenneth Willis, Senior Vice President/Directorkenneth.willis@fhlbboston.com

(617) 292-9631

FHLBank Boston JNE Contacts

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Classification: Internal

FAQs & Info available at:

http://www.fhlbboston.com/communitydevelopment/jobs_ne/index.jsp

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