Banking On Business

BOB Forms & Resources

BOB Update

The BOB funding round for 2022 is now closed.

Need More Information?

Contact Julie Francis at 800-288-3400 ext. 7356 or bob@fhlb-pgh.com.
  

Current BOB Members

A list of members enrolled in BOB.

What is Banking On Business?

Delivered through FHLBank Pittsburgh enrolled members, Banking On Business (BOB) funding helps eligible small businesses that lack sufficient equity or cash flow meet lending standards. Funding is:

  • Offered in the form of secondary financing up to $200,000
  • Available to members enrolled in the program

On average, each BOB dollar FHLBank Pittsburgh contributes leverages $6 in financial resources to small businesses.
 

What is the Banking On Business Inclusion and Equity fund (BOBIE)?

New for 2022, FHLBank has established a set-aside of BOB funds for minority- and women-owned small businesses. The set-aside is named the Banking On Business Inclusion and Equity fund (BOBIE). BOBIE is intended to meet the needs of underrepresented small businesses by offering more flexible terms than are otherwise available under BOB that are aimed to be more favorable to minority- and women-owned small business borrowers.

How Does BOB Benefit Members?

FHLBank Pittsburgh members benefit from BOB in a variety of ways:

  • Serves as gap financing to make small business deals bankable
  • Integrates with existing commercial underwriting; no additional underwriting required
  • Creates new business relationships and cross-selling opportunities
  • Provides additional fee income on the BOB loan
  • Qualifies for Community Reinvestment Act credit
  • Strengthens the local economy by helping to create and retain jobs
  • Through BOBIE, provides an opportunity to support underrepresented minority-and women-owned small businesses.

What Qualifies for BOB Funding?

BOB or BOBIE funds may be used in financing the startup, maintenance or expansion of a small business, including, but not limited to:

  • Building purchase 
  • Land acquisition and construction 
  • Facility expansion 
  • Machinery and equipment purchase 
  • Leasehold improvements
  • Permanent working capital 
  • Closing costs

All grants are in the form of recoverable assistance with specific repayment terms.

Each BOB transaction must meet the following guidelines:

  • The business must qualify as a small business based on SBA size standards.
  • One job must be created or retained for every $35,000 in BOB funds, or other economic impact must be demonstrated.
  • The amount of BOB financing must be equal to or less than the $200,000 maximum.
  • The total BOB financing must not exceed 50% of the member loan, except in cases when the member uses a public loan guarantee program. In such cases, BOB will provide up to 50% of the remaining exposure of the member. 
  • The member must provide a loan of at least 40% of the total project cost. 
  • The member must show that the loan would not have been made without BOB financing. 

Each BOBIE transaction must meet the following guidelines:

  • The business must qualify as a small business based on SBA size standards.
  • The business must qualify as a “Minority-Owned Business” or “Women-Owned Business” as defined in the BOB Program Manual.
  • If one job cannot be created or retained for every $35,000 in funds requested, an applicant’s qualification as a “Minority-Owned Business” or “Women-Owned Business” (as defined in the BOB Program Manual) is an acceptable qualifier to demonstrate economic impact.
  • The amount of BOBIE financing must be equal to or less than the $200,000 maximum.
  • The total BOBIE financing must not exceed 100% of the member loan, except in cases when the member uses a public loan guarantee program. In such cases, BOBIE will provide up to 100% of the remaining exposure of the member. 
  • The member must provide a loan of at least 25% of the total project cost. 
  • The member must show that the loan would not have been made without BOBIE financing. 

How to Apply

To apply for BOB or BOBIE funds, members:
  • Submit a one-time Enrollment Form and Master Agreement to access the BOB product
  • Members who wish to participate in BOBIE also must execute an Addendum to the BOB Master Agreement prior to submitting any application for BOBIE. Please email bob@fhlb-pgh.com to request the Addendum needed to sign up for BOBIE.
  • Once enrolled, submit registration forms during open funding rounds to request BOB or BOBIE funds on a first-come, first-served basis for qualified businesses. For BOB transactions, funds are initially limited to a cumulative maximum of $600,000 per member. 4.5 months after the round opening, the BOB funding cap will be lifted and any remaining BOB funds will be re-pooled and made available again to all members. For transactions funded through the BOBIE set-aside, the funding cap will not apply.
The Community Investment Department can assist you in completing a business registration and any supplemental forms, and in explaining the responsibilities of each party involved in BOB and in BOBIE. 

BOB Success Stories

See examples of BOB businesses that have had a beneficial impact on their communities.
To enroll in BOBIE, please email bob@fhlb-pgh.com for a copy of the addendum to the BOB Master Agreement.
  • BOB Brochure - Non-Member - Detailed brochure about Banking On Business for borrowers and interested parties.
  • BOBIE Flyer - A flyer with information on the new BOBIE set-aside for Minority- and Women-Owned Businesses.

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