Five Questions With: Edward A. Hjerpe III

Edward A. Hjerpe III is president and CEO of Federal Home Loan Bank of Boston. / FEDERAL HOME LOAN BANK OF BOSTON
Edward A. Hjerpe III is president and CEO of Federal Home Loan Bank of Boston. / FEDERAL HOME LOAN BANK OF BOSTON

Edward A. Hjerpe III is president and CEO of Federal Home Loan Bank of Boston. The bank is working with New England states to spur economic development through various programs, including Jobs for New England and Helping to House New England. Hjerpe talks with Providence Business News about those programs and how Rhode Island fits into the overall mix.
PBN: Can you tell our readers a little bit about the Jobs for New England and Helping to House New England programs?
HJERPE:
The Federal Home Loan Bank of Boston’s primary mission is to assure that our members – more than 440 banks, credit unions, insurance companies and community development financial institutions in the six New England states – have access to capital for lending, regardless of their deposit levels. Late last year, our board challenged us to think creatively about how we could use our financial strength to help the region. We know that small businesses need low-cost capital to support growth, and our economy requires a supply of housing to attract and retain workers at all income levels. These programs were created to have an impact on these issues.
PBN: How do these programs benefit Rhode Island financial institutions, business owners and homebuyers?
HJERPE:
Housing developers and small-business owners often think that a business loan is unaffordable or out of reach. We want to support the work they do. Jobs for New England provides up to $5 million a year in zero-cost capital to our members, which allows them to offer below-market-rate loans for qualified small businesses, including woman-, veteran- and minority-owned businesses. For example, Bank Rhode Island will use these funds to lend to companies at below-market rates to expand facilities, purchase new equipment and create 14 jobs. Navigant Credit Union is also helping a women-owned business refinance its debt, expand their facility and hire an additional six employees – all of which will boost economic activity in their communities. In a similar way, Helping to House New England offers up to $5 million [per] year in zero-interest capital to the six state housing finance agencies to create or preserve affordable housing. The funding will assist first-time homebuyers and expand options for renters.
PBN: How do these programs benefit the Federal Home Loan Bank of Boston, and where does the Rhode Island market fit into the regionwide strategy?
HJERPE:
We have terrific partners in Rhode Island, and we embrace and support the state’s entrepreneurial spirit. Seventeen of our members are based here, and as of June they had $8 billion of outstanding advances, or loans, from us. Since 1990, we have awarded more than $25 million in grants to create or preserve more than 4,000 units of affordable housing in the state. It is great when big businesses make the decision to relocate to our region. We think that the organic growth happening in Rhode Island, as smaller businesses grow larger and as housing options increase, is also critical to the region, so we want to support them as well.
PBN: Why partner with Rhode Island first for the Helping to House New England program?
HJERPE:
We have worked with RI Housing on a number of affordable housing projects in the past and thought their proposal for a soft second mortgage program was perfectly aligned with our goals. Programs like this can expand the number of individuals and families who can access home-buying opportunities. This creates greater stability for our region and has a positive ripple effect in communities throughout the state.
PBN: How do you see these programs helping to spur economic activity for both Rhode Island and the region?
HJERPE:
Small and midsized business owners often have ideas for the next phase of their growth. We hope these below-market funding programs will help turn those ideas into reality and allow them to add more jobs, buy more local goods and services, as well as help working families buy homes, and generally continue a positive growth trajectory. We know that this funding will help boost community economic development, both in Rhode Island and across the six New England states.

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