Discount Window & Payment System Risk Contact Information for Minneapolis
Seasonal Lending Program and Application Form for Minneapolis (9th District)Program Description
Step 1: Determine the Basis for Monthly Loan and Deposit Data
Step 2: Calculate/Report Monthly Loan and Deposit Figures
Step 3: Complete the Application Form
»Application Form [PDF; 68K]
Step 4: Send the application to the Federal Reserve Bank of Minneapolis
»Seasonal Lending Brochure [PDF; 2.1MB]
Under the seasonal lending program, a depository institution ("institution") may qualify for funding for up to nine months during the calendar year, to meet seasonal borrowing needs of the communities it serves. The seasonal lending program is for institutions with demonstrated liquidity pressures of a seasonal nature and will not normally be available to institutions with deposits of $500 million or more. Institutions that experience fluctuations in loans and deposits–caused by construction, college, farming, resort, municipal financing and other seasonal types of business–frequently qualify for the seasonal lending program. Eligibility for seasonal credit is based mainly on two factors:
- Your institution's deposit size (as a proxy for reliable access to national money markets).
- Your projected seasonal need for funds, as indicated by a consistent pattern of significant seasonal swings in total loans and deposits during the last three years. Calculation of your seasonal need for funds is based on the month-to-month changes in loans and deposits over the past three years.
STEP 1: Determine the Basis for Monthly Loan and Deposit Data
If you are providing more than one year of data, use one of the following methods for calculating monthly loan and deposit figures:
- The average daily balance for each month;
- The average of any week of the month, such as the second week; or
- A particular day of each month, such as the third Wednesday.
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 routine deposits. The program is not intended to provide seasonal credit in situations where the institution experiences short, temporary influx of deposits. 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 [PDF; 68K].
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.
Seasonal Lending Program Application Form [PDF; 68K]
1. Using Steps 1-2 above and the instructions provided on the application form, calculate your monthly loan and deposit figures and enter them onto the form.
2. Write a brief description of the factors causing your potential seasonal need (causes of Seasonal fluctuations in Loans and Deposits).
Please record all data legibly, completing all sections as requested.
STEP 4: Send the application to the Federal Reserve Bank of Minneapolis
Email or Fax the completed application form to:
Fax - no cover letter necessary: (612) 204-5911
Please direct any questions to a Credit/PSR analyst at:
Toll Free: (877) 837-8815