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Bulletins
Bulletin No.: 2020-11
April 17, 2020

TO: MEMBERS

SUBJECT: Paycheck Protection Program Loans

The Federal Home Loan Bank of Dallas (Bank) has been actively working to assist members who are seeking collateral value for loans made through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Bank makes every effort to provide advance capacity for government guaranteed loans; however, PPP loans are currently not eligible for pledging to the Federal Home Loan Banks. For that reason, the Bank has executed agreements with the Federal Reserve Banks of Dallas, Atlanta, St. Louis and Kansas City to assist members who are seeking liquidity using the PPP loans as collateral. These agreements will allow members to pledge PPP loans to the Federal Reserve Banks without requiring any prior release from the Bank.

In order to obtain additional information regarding the Paycheck Protection Program Liquidity Facility (PPPLF), please visit the Federal Reserve’s PPPLF resource page.

The Bank will continue to work diligently toward a solution which would allow us to accept PPP loans as eligible collateral in the future.
 
Please contact Collateral Services at 800.541.0597, Option 1, if you have questions or need additional information.
 
Sincerely,
 
Gustavo Molina
Senior Vice President and Chief Banking Operations Officer