"The floods of 2008 devastated our community with some parts of Cedar Rapids considered unrecoverable. Our bank is only as strong as the community it serves and that makes us committed to rebuilding the community and getting businesses thriving again."
Gary M. Becker, Senior Vice President,
Cedar Rapids Bank and Trust
Cedar Rapids Bank and Trust
Cedar Rapids, Iowa, was among the locations most significantly impacted by the catastrophic floods along the Cedar River in the summer of 2008. Since the flood, Federal Home Loan Bank of Des Moines (FHLB) member, Cedar Rapids Bank & Trust, is helping many flood-affected individuals and businesses recover by providing financing for repair or reconstruction.
To support this effort, Cedar Rapids Bank & Trust secured $3.2 million through FHLB’s Investment Advance Program. These funds have been used to provide low rate loans, which have been primarily used by downtown businesses and building owners as they work to reopen their doors. Together, banks and communities are showing that dedication and solidarity can help overcome any disaster.
Why Federal Home Loan Banks Matter
Federal Home Loan Bank members are everywhere, and the unique cooperative nature of the Federal Home Loan Banks allows those members to build, sustain and nurture communities throughout America.
Without access to Federal Home Loan Bank advances, most members would find it difficult to support lending within their community. Everywhere across the country, financial institutions must make decisions every day about how to fund a mortgage loan to a family looking to buy their first home or a small business loan to a customer who wants to expand and create more jobs in the community. By harnessing the collective power of its members and the 12 Banks, the Federal Home Loan Bank System brings the debt markets to Main Street America. Financial institutions know that they can rely on the Federal Home Loan Banks as a stable source of funds through all manner of credit cycles. The current credit crisis illustrates the importance of the Federal Home Loan Banks, as they have increased their advances while other sources of funding have dried up.
© , Council of Federal Home Loan Banks