More aggressive design practices have created renewed interest in techniques for analyzing substrate coupling problems. Most previous work has focused primarily on faster techniques for extracting coupling resistances, but has offered little help for reducing the resulting resistance matrix, whose number of nonzero entries grows quadratically with the number of contacts. Wavelet-like methods have been applied to sparsifying the resistance matrix representing the substrate coupling, but the accuracy of the method is very sensitive to the particulars of the contact layout. In this paper we show that for the substrate problem it is possible to improve considerably on the wavelet-like methods by making use of the algorithmic structure common to the fast multipole and wavelet-like algorithms, but making judicious use of low-rank approximations. The approach, motivated by the hierarchical SVD algorithm, can achieve more than an order of magnitude better accuracy for commensurate sparsity, o...