|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
December 29, 1997
Federal Home Loan Bank of Seattle Establishes Disaster
Relief Fund For Guam Communities Hit by Typhoon Paka
Seattle - Responding to the pressing needs of communities devastated by Typhoon Paka, the Federal Home Loan Bank of Seattle has established a $120 million Disaster Relief Fund to help financial institutions serving Guam finance the extensive recovery and rebuilding efforts, announced James R. Faulstich, president and chief executive officer of the Seattle Bank. The Federal Home Loan Bank of Seattle also made a $10,000 contribution to American Red Cross - Guam to support disaster relief. Typhoon Paka hit Guam on December 17, with sustained winds of 150 miles an hour and a wind gust that reached 236 miles an hour, the highest ever recorded.
The Seattle Bank is a regional, wholesale bank that serves more than 285 local banks, savings institutions and credit unions, including four in Guam and four in Hawaii that have operations in Guam. The Disaster Relief Fund is available to these lenders, who can obtain the funds and lend them to families and small businesses in Guam.
"The devastation brought on by the typhoon is astonishing, and the residents of these communities will be turning to their local lenders for immediate financial help," explained Faulstich. "Access to the Disaster Relief Fund ensures that lenders will be able to readily respond to the needs of homeowners and small business owners seeking to rebuild."
The availability of these low-cost funds ensures that lenders will have monies immediately accessible to meet customer and community demands. In addition, Disaster Relief Fund loans are offered at the Seattle Banks cost of funds. The local financial institutions are expected to pass the reduced prices on to their customers.
Lenders may access the funds to provide short-term "bridge" loans that borrowers can use to begin repair or reconstruction before they receive insurance payments or federal aid. Longer-terms loans are also available as permanent financing for eligible small businesses, single-family and multifamily housing, and other economic development initiatives.