Innovative Solutions Come from Partnerships
Interest rates have soared since the pandemic, making it challenging for Community Development Financial Institutions (CDFIs) like the New Hampshire Community Loan Fund to raise the low-cost capital our low-income borrowers need. Federal Home Loan Bank of Boston (FHLBank Boston) and its Advisory Council saw the need — and identified a solution.
The CDFI Advance Program, piloted by FHLBank Boston in 2024 and reintroduced in 2025, created a limited pool of dollars that its member financial institutions could apply to at zero percent and then lend to New England CDFIs at terms of up to 3 percent for 10 years.
“We’re proud that CDFIs like the Community Loan Fund have access to low-cost funding through the CDFI Advance to invest in affordable home mortgages, housing development, and small business loans,” said Kathleen Amonte, Senior Community Investment Manager at FHLBank Boston.
Through the program, the New Hampshire Community Loan Fund has been able to access $5 million in low-cost, longer-term capital through our partners at Bank of New Hampshire, Meredith Village Savings Bank, and Merrimack County Savings Bank.
“This partnership between FHLBank Boston and our valuable banking partners is one of the most innovative and helpful solutions we have seen in response to the high-interest-rate environment. We are grateful to FHLBank Boston’s Advisory Council and the member banks who are stepping up to help CDFIs continue to produce more affordable homeownership opportunities and small business loans,” said Katie McQuaid, Senior Vice President of Philanthropy and Community Engagement.
“We’re proud that CDFIs like the Community Loan Fund have access to low-cost funding through the CDFI Advance to invest in affordable home mortgages, housing development, and small business loans."