Banking in the Ninth

The Fed Can Help Meet Seasonal Credit Needs

Credit/Payment Systems Update - December 2016

Published December 14, 2016  | December 2016 issue

The Seasonal Credit Program provides a reliable source of funding to small depository institutions that lack access to national money markets and experience seasonal fluctuations in deposits and loans. Under the program, depository institutions can obtain funds through the Discount Window during periods of seasonal need, allowing them to carry fewer liquid assets in the off-season and to make more funds available to meet the credit needs of their local communities. Credit can be obtained for periods of up to nine months in a calendar year, and there are no commitment fees or other expenses involved in setting up and maintaining a seasonal line of credit, even if it is never used.

The Ninth District is proud to be a leader in the Seasonal Credit Program, with the highest level of participation in the Federal Reserve program in 2015 and 2016. Sixty-seven Ninth District depository institutions were approved for the program in 2016, and so far this year 34 institutions have taken 249 loans totaling more than $387,800,000. In 2015, the Ninth District had 67 depository institutions approved for the Seasonal Credit Program, with 34 institutions taking 455 loans totaling $886,129,000 during the full year. The largest number of Seasonal Credit Program participants is in North Dakota, with Minnesota institutions coming in second in approved applications.


One of the benefits of the Seasonal Credit Program is an institution’s ability to borrow funds for up to 30 days at a rate generally lower than the primary credit rate. An institution can use all or some of the allocated funds each month, or it may be able to request a change to its allocation to meet changing needs.

Do you need supplemental funding to complement your seasonal business?

The Seasonal Credit Program may be of interest to you if your institution experiences regular fluctuations in liquidity because of your customers’ seasonal types of businesses, such as:

  • Agriculture
  • College
  • Construction
  • Municipal financing
  • Tourism

Does your institution qualify?

If your institution holds less than $500 million in deposits and can demonstrate a clear pattern of recurring seasonal swings in funding needs, then your institution may qualify for the Seasonal Credit Program.

Are you ready to get started?

The first step is to establish access to the Discount Window by completing the required Operating Circular 10 (OC-10) agreements found on the Discount Window website if you haven’t already done so. Contact one of our analysts if you have any questions about how to complete the agreements.

The next step is to read more about the program requirements and follow the directions to complete an application on the Discount Window website. Applications should be submitted at least three weeks prior to the requested seasonal line start date. Note that all loans must be fully secured and that adequate collateral must be pledged prior to initiating a loan request.

Do you need more information?

Our staff is ready to assist you. For additional information on this or any other credit program, contact the Discount Window team at the Federal Reserve Bank of Minneapolis, as follows:


Mail: Federal Reserve Bank of Minneapolis
Credit/PSR Section
P.O. Box 291
Minneapolis, MN 55480-0291

Phone: Toll free: (877) 837-8815