So often we are told that in business, it’s about the relationship. In commercial real estate, that could not be truer. When building a client base, a comprehensive yet strategic book of business can increase the chance of success of a long-term career. Additionally, what can set you apart from the crowd in a competitive industry is, not just what you know, but who you know.

One of the most important components of your business network is your financial services partner. After all, a deal doesn’t close unless there is the capital to support it. If you already have connections within the banking and lending industry, you are off to a great start. It is also worthwhile to understand who is in their book of business for financial and capital resources.

In Illinois, there are over 400 financial institutions that are members of the Federal Home Loan Bank of Chicago (FHLBank Chicago). Included in that number are banks and thrifts, credit unions, insurance companies and community development financial institutions. Do you know if your financial services partners are members of FHLBank Chicago? To verify if they are, you can visit the website, www.fhlbc.com and click on “Membership” to view a full list of Illinois members. Through those members, you may discover that a client and their project may qualify for a grant through one of the FHLBank Chicago’s Community Investment Programs.

The largest and most well-known is the Affordable Housing General Fund Program (AHP). Through AHP, FHLBank Chicago member institutions partner with for- and not-for-profit developers, community organizations, units of government, public housing authorities, and tribal governments to apply for annual grants to subsidize the acquisition, new construction, and/or rehabilitation of affordable rental or owner-occupied housing. The AHP subsidy is provided as a forgivable grant up to $1,000,000 or 75% of the total project cost, whichever is less, from FHLBank Chicago, through a member, to a project sponsor. If you have a client that is trying to develop an affordable housing project, it may qualify for this grant.

Since AHP is an application-based grant, awarded on an annual basis, there are several criteria and timelines that need to be met. Understanding this program is a good first step as a broker. Next, talking with your banking or credit union lending partners to discuss the feasibility of applying for these funds will help to move your client’s project closer to a potential AHP grant award. As a trusted REALTOR advisor, being aware of the tools, and connecting those tools to the experts that know how to use them, is the best way to meet the needs of your clients.

Other grant programming available through FHLBank Chicago is the Community First® Accelerate Grant for Small Business. This grant program, which provides up to $25,000 for a small business can be used towards the purchase or improvement of a property. As with AHP, this grant is accessed through FHLBank Chicago members.

So as you think through how to serve your commercial clients, always keep your relationships with your financial services partners’ top of mind. Consider FHLBank Chicago Illinois member institutions as a great partner in serving the needs of your clients and your communities.

“Community First” is a registered trademark of the Federal Home Loan Bank of Chicago.

Written by Sharon Gorrell, Federal Home Loan Bank of Chicago.