View questions about SBA loans as collateral:
- Currently FHLB Des Moines does not accept SBA loans as collateral. In light of the recent PPP legislation with the SBA guaranteeing about $350Billion in short term loans for small businesses, are you considering allowing SBA loans to be pledged for collateral?
FHLB Des Moines is working with the rest of the Federal Home Loan Bank System to expedite subordinating Small Business Administration (SBA) Paycheck Protection Program (PPP) loans to the Federal Reserve Banks so they may lend against these assets. In order for us to accept PPP loans as collateral, SBA would need to allow FHLB Des Moines to realize upon the guarantee and they have not done so to date. If this should change, we will communicate it to our membership.
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