Boston University School of Law
This paper discusses three proposals aimed at reorienting the mission of the System and of the FHLBanks: (1) liberalizing the System's collateral requirements to make the use of small business and other job-creation loans a more viable source of collateral for advances; (2) expanding the membership requirements of the FHLBanks to allow those financial institutions that currently lend to small businesses to become members; and (3) creating a job creation program that uses some of the best practices of the System's Affordable Housing Program. Taken together or separately, these proposals utilize the unique structure of the FHLB System as described below to create and preserve jobs.
Cornelius K. Hurley & Rebecca H. Gallup,
The Federal Home Loan Bank System: A Vehicle for Job Creation and Job Retention
Review of Banking and Financial Law
Available at: https://scholarship.law.bu.edu/faculty_scholarship/1560