Delivered through FHLBank Pittsburgh 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 in the region.
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
BOB funds may be used in financing the startup or expansion of a small business, including:
- 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 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.
To apply for BOB funds, members:
- Submit a one-time Enrollment Form and Master Agreement to access the BOB product
- Once enrolled, submit registration forms during open funding rounds to request BOB funds on a first-come, first-served basis for qualified businesses. Funds are initially limited to a cumulative maximum of $600,000 per member. Six months after the round opening, the cap will be lifted and any remaining funds will be re-pooled and made available again to all members.
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 the BOB program.
See examples of BOB businesses
that have had a beneficial impact on their communities.