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Seasonal Lending Program and Application Form for Minneapolis (9th District) Program DescriptionStep 1: Determine the Basis for Monthly Deposit and Loan Data Step 2: Calculate/Report Monthly Loan and Deposit Figures Step 3: Provide a Statement of Your Seasonal Need »Application Form [MS Excel;29K] Step 4: Forwarding the Application »Seasonal Lending Brochure [PDF; 2.1MB] Program Description Seasonal credit is available to institutions that can demonstrate a clear pattern of recurring intra-yearly swings in funding needs. The Federal Reserve established the Seasonal Lending Program in the early 1970s because a lack of access to funds in national money markets appeared to be limiting some small banks' ability to serve customers in their local communities. Under the Seasonal Lending Program, borrowers may obtain longer-term funds from the discount window during periods of seasonal need so they can carry fewer liquid assets during the rest of the year and can make more funds available for local lending. Eligibility for seasonal credit is based mainly on two factors:
STEP 1: Determine the Basis for Monthly Deposit and Loan Data If you are providing more than one year of data, use one of the following methods for calculating monthly deposit and loan figures:
Calculating Loan data: Your monthly loan figures should represent only loans to borrowers in your trade area. Therefore, the figures should be adjusted to exclude federal funds sold, marketable commercial paper, or participations in correspondent loan portfolios. However, if you are required to buy a participation from a correspondent as a condition of the correspondent taking an overline from you, this loan indirectly represents funds made available to your local borrowers and should not be excluded. The loans that you report should include any earning asset which represents funds made available to borrowers in your trade area (e.g. tax anticipation certificates purchased each year from a local unit of government). Calculating Deposit data: Your monthly deposit figures should be adjusted to exclude any unusual deposits not reflecting regular deposits, such as a temporary deposit of funds from local tax collections or from a bond issue. Any unusual changes in month-to-month figures during the year suggest possible need for adjustment. If your deposit figures do not reflect any temporary or unusual deposits, report them as they appear on your books. Reporting Loan and Deposit Data: Provide your institutions loan and deposit figures to the Federal Reserve Bank of Minneapolis by completing the Seasonal Lending Program Application form [MS Excel; 29K]. The figures you submit will be used as the basis for determining your institution's projected seasonal borrowing qualification. Please describe in writing any special circumstances that would apply (for example, if your institution's deposit figures dramatically increased due to acquiring a branch or a merger). We will send a letter stating the monthly amounts that you are eligible to borrow, if applicable. We limit the use of seasonal credit to nine calendar months. If the calculation shows a seasonal qualification of eleven months, for example, we would restrict seasonal borrowing to your choice of any nine of those eleven months. For each month, you may borrow all or part of your seasonal qualification and prepay in part or full throughout the month. In addition, you may request modification of your credit arrangement. Note that all advances and repayments must be made in thousand-dollar increments. STEP 3: Provide a statement of your Seasonal need Write a brief description of the factors causing your potential seasonal need (causes of Seasonal fluctuations in Loans and Deposits). Complete the application form Seasonal Lending Program Application Form Using Steps 1-3 above and the instructions provided on the application form [MS Excel; 29K], calculate your monthly deposit and loan figures and enter them onto the form. If you are new to the Seasonal Borrowing program, you must provide deposit and loan data for 2009, 2008 and 2007 (two years of loan and deposit data may be accepted if three years are unavailable). If you qualified for a seasonal line last year, you need to provide 2009 data only. Please record all data legibly, completing all sections as requested. STEP 4: Send the application to the Federal Reserve Bank of Minneapolis Mail, Fax or Email completed application form to: Email: mpls.credit@mpls.frb.org Fax - no cover letter necessary: (612) 204-5911 Federal Reserve Bank of Minneapolis Credit/PSR (T-5) - Seasonal Lending P. O. Box 291 Minneapolis, MN 55480-0291 Please direct any questions to a Credit/PSR analyst at: Toll Free: (877) 837-8815 Email: mpls.credit@mpls.frb.org 1The Reserve Bank may consider using two years of loan and deposit data if three years are unavailable.
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