Angela Perrin got the idea for her business from her pregnant daughter. Thanks to her entrepreneurial zeal, Natchez, Mississippi, now has its first infant, child and maternity store: Kudzu Cotton.

However, when Ms. Perrin tried to obtain a business loan, it was difficult because she lacked experience in retail.

The business moved forward thanks in part to a $5,000 Small Business Boost (SBB) loan from the Federal Home Loan Bank of Dallas (FHLB Dallas).

The SBB fills the gap between the loan amount that an FHLB Dallas member institution can fund and the loan request made by an eligible small business. And the loan has several advantages for small businesses and startups such as Kudzu Cotton. For example, the borrower does not begin to repay the loan until after the first year, helping newly formed small businesses build cash flow during their first year in operation.

Like other FHLB Dallas community programs, funds are provided through FHLB Dallas members, in this case Renaissance Community Loan Fund (RCLF).

Kimberly LaRosa, president and CEO at RCLF, said helping small businesses is vital to the region’s economy.

“Too many aspiring entrepreneurs don’t ever see their dreams of owning a business become reality,” Ms. LaRosa said. “At RCLF, we recognize that small businesses sometimes need that extra boost to get started. It’s a pleasure to be part of the process and see their success.”

Visit fhlb.com/sbb to learn more.

Do you have a success story using FHLB Dallas programs? We would love to hear from you! Submit your story here.