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Small Business Boost (SBB)

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Small Business Boost

Big Solutions for Small Businesses

Program Overview

If you are an FHLB Dallas member that wants to help small businesses grow and thrive while growing your commercial loan portfolio and reducing your risk exposure, consider the Small Business Boost (SBB) program.

SBB provides secondary, unsecured loans in conjunction with primary loans to qualified small businesses that would not otherwise meet member underwriting criteria. It fills the gap between the amount the lender can finance and the amount requested by the borrower when the borrower lacks equity, traditional collateral or is experiencing a shortfall after appraisal.

SBB funds can be used for the startup or expansion of a small business, including building purchase, land acquisition, construction, equipment, working capital and other related uses.

In addition to the member’s loan to the small business, FHLB Dallas will provide up to $125,000 or 50 percent of the member’s loan in SBB funding, whichever is less. There are no repayments due on an SBB loan during the first year, which helps to improve initial cash flow for the small business and reduces the member’s risk exposure. Beginning in year two, the member may charge up to 3 percent interest on the SBB loan.

As small businesses grow and repay, funds are recycled back into the SBB program to be reinvested in other small businesses which can create more jobs over time. Funds are available until they are exhausted or December 6, 2024, whichever comes first.

Note: Applications for SBB funding must be submitted by an eligible FHLB Dallas member financial institution. FHLB Dallas does not fund directly to consumers.

Available Funds as of May 24, 2024: $1,348,004

Our Impact

Learn how FHLB Dallas made a big impact in 2023.

$3.4M

Loaned to Small Businesses

46

Small Business Served

153

Jobs Created or Retained



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Jessica Pickens has always loved working in retail so when the owner of Fincher’s Inc. in Greenwood, Mississippi, said she was ready to retire, Ms. Pickens jumped at the chance to purchase the shop from her.

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Stories

Tell Us Your Story

We'd love to hear from you! Tell us if you've been a recipient of funds from an FHLB Dallas program.

In addition to ensuring the small business meets Small Business Boost (SBB) guidelines, participating FHLB Dallas members must:

  • Demonstrate that the loan does not meet their underwriting criteria without the SBB funds
  • Ensure that the SBB loan does not exceed $125,000 or 50 percent of the member’s loan to the small business, whichever is less
  • Provide at least 40 percent of total financing to the small business. Extending or modifying a borrower’s existing debt may be used to meet this requirement; members are not required to advance additional loan funds to the small business
  • Monitor and report on the performance of the loan per the  program’s requirements

How It Works

SBB funds are offered through participating SBB members. Our team is committed to ensuring that that the process is easy and streamlined. 

  1. Member Enrollment: Join our network of members offering SBB funding to their small business customers. To apply, simply complete and submit the SBB Enrollment Form and SBB Master Agreement. Once accepted into the program, you can request SBB funding during each annual offering period.
  2. Customer Engagement: Promote SBB to the small businesses in your community, ensure their eligibility and guide them through the application process. FHLB Dallas offers tools to help you market the program to prospective borrowers.
  3. Funding Requests and Disbursement: Register an eligible small business for an SBB loan during an open funding period to request funds for a project. FHLB Dallas will notify you of a decision within 10 business days and disburse the funds to your FHLB Dallas demand deposit account, at which point you will have three months to close on the SBB loan.
  4. Loan Servicing: Collecting monthly payments from the small business in accordance with the amortization schedule provided by FHLB Dallas and remit to FHLB Dallas annually. Program funds are repaid to FHLB Dallas only when the small business can make these payments to the member
  5. Ongoing Monitoring: In year two, FHLB Dallas will request a Performance Management Review to confirm compliance with the SBB program requirements, including the number of jobs created or retained.

Note that it is the member's responsibility to monitor the performance of the loan and to immediately notify FHLB Dallas of any loan payments that are 60 days or more past due. In the case of loan default, the member should begin reasonable collection efforts for the member loan and SBB loan. If there are insufficient funds to repay the SBB loan, a written notification detailing the recovery process must be provided to FHLB Dallas.

Applying to Participate in SBB

FHLB Dallas members can enroll in the SBB program by completing the SBB Enrollment Package, which includes the SBB Enrollment Form and SBB Master Agreement. You can request to receive the enrollment package via AdobeSign using the contact form below or by emailing SBB@fhlb.com.

FHLB Dallas will review the forms and notify members of their acceptance into the program  within 10 business days.

Applying for Small Business Boost Funds

To apply for SBB funds during an open funding round, enrolled members may request the SBB Business Registration form be sent via AdobeSign by submitting a request using the contact form below or by emailing SBB@fhlb.com. In addition to the SBB Business Registration form, a copy of the credit write-up for the member loan and organizational documents for the small business will be required.

FHLB Dallas will notify members of a decision within 10 business days. The member will then have three months to close on the SBB loan. Disbursement of SBB funds to the member’s FHLB Dallas demand deposit account is completed after the funding request form and all supporting documentation has been received and approved.

Interested organizations (applicants) must complete and submit an application in partnership with an FHLB Dallas member financial institution. Funds will be disbursed through the member institution sponsoring the application.

SBB funds are extended to eligible small businesses through FHLB Dallas’ members. If you are a small business owner looking for assistance, contact a participating FHLB Dallas member for more information about your eligibility and the application process.

Note: Funds may only be accessed through a member institution. FHLB Dallas does not provide funds directly to businesses.

SBB funding may be used for:

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

SBB loans for non-real estate transactions can extend up to seven years and be amortized up to 10 years. SBB loans involving real estate can be amortized for up to 15 years. If the financing of real estate is greater than 50 percent of project costs, the SBB loan term will be the lesser of 10 years or the member’s loan term.

How It Works

To qualify for SBB funding, a small business must meet the following criteria:

  • The business must be qualified as a small business based on Small Business Administration (SBA) standards
  • The small business must create or retain at least one job for every $62,500 of SBB funding
  • If the loan involves real estate, at least 51 percent of the real estate must be occupied by the small business

The small business may obtain only one SBB loan.