Borrower’s Loan Protection^®

Loan Hedging Solution — Not Your Typical Interest Rate Swap

Loan hedging can give your institution a competitive advantage. With Borrower’s Loan Protection (BLP), you can protect your institution from interest rate risk and win new business without derivative accounting or complicated, lengthy documents.

Meet your customers’ needs with the competitive, fixed-rate payment structure they want, while your institution receives a floating rate over the full term of the loan.

Key Benefits:

Reduce rate risk and credit risk
No requirement for hedge accounting, capital or collateral by your institution
Generate fee income
No swap implications
Retain and acquire customers

BLP: How Your Institution Can Benefit

Article: Unlocking Stability: Loan-Level Hedging & Finding a Partner

Close More Loans with BLP®

Most loan hedging solutions offer 10-year terms. However, PCBB can provide terms up to 25 years. Our extended term-length options will help you stay competitive and mitigate debt service coverage so you can offer attractive, longer-term loans to your customers.

Discover More About How BLP Works

What Sets Our Loan Hedging Solution Apart

Lenders never post collateral, especially in a falling rate environment when liquidity and capital are most important.
BLP does not encumber the lender’s capital or ability to take FHLB Advances.
Lender’s total exposure to the borrower is the same for BLP as any other swap-based hedge and in some cases less.

Article: Why CFIs Don’t Hedge (and Why They Should)

Why Choose PCBB as Your Lending Partner

This competitive hedging tool allows us to not only retain our key customers, but also attract new customers, since we can offer more attractive, flexible terms that many borrowers really want.

Raleigh Hayter, SVP & CCO, First Bank & Trust Company

Article: Duration Hedging as a Shield Against Rising Interest Rates

Loan Types That Work for BLP Hedging

We partner with lenders and their borrowers to structure customized financing solutions at competitive rates. BLP supports a broad wide range of commercial loan applications, spanning both Commercial Real Estate (CRE) and Commercial & Industrial (C&I) asset categories.

Below are some of the more common asset categories used as collateral for BLP. We are flexible and ready to work with you.

Commercial Real Estate (CRE)

	Multi-family
	Owner-occupied
	Manufactured housing
	General Office
	Medical/Special Purpose
	Industrial
	Agriculture
	Hospitality
	SBA
	USDA

Commercial & Industrial* (C&I)

	Construction & Ag Equipment
	Industrial Storage Examples: Beer Vats LV Tanks and more
	Transportation Examples: Aircraft Rail cars Tugboats and more

*Note that C&I asset classes are reviewed and approved case by case. Please contact the team for more details.

BLP Tools at Your Fingertips

As a BLP customer, you have access to marketing and loan pricing tools at no cost via our mobile-optimized BLP Portal. We provide you with resources and direct access to our team to support you in achieving your lending goals.

Discover what marketing tools we offer in our BLP Portal.