How is the subsidy on a subsidized advance calculated?
The subsidy is the difference between the Bank’s cost of funds and the interest rate charged to the member. To calculate the amount of AHP subsidy needed to reduce the interest rate to the member, the Bank calculates the difference between the total payments for a loan made at the Bank’s cost of funds and the total payments made at the reduced rate. Your community investment manager can walk you through the calculation for your project.
Related Questions
- How is the COBRA subsidy calculated if a severance program has the employer paying 100% of the cost for a specified period of time?
- How is the COBRA subsidy calculated if the employer already more generously subsidizes the COBRA premium?
- How are the Subsidized and Unsubsidized portions of the Stafford Loans calculated?
