Securing flexible financing can turn business ambition into reality. Just ask Jeff Ottmers, the proud owner of a Tommy’s Express Car Wash franchise, which was set up with support of a $100,000 Small Business Boost (SBB) loan from the Federal Home Loan Bank of Dallas (FHLB Dallas).

FHLB Dallas offers SBB to qualified small businesses through member financial institutions by filling the gap between the loan amount that a member can fund, and the original loan request by an eligible small business.

FHLB Dallas member First National Bank of Texas (FNBT) provided an initial loan of more than $5 million, but there was a financing gap between Mr. Ottmers’ request and the amount it could underwrite. This funding gap was bridged by the SBB loan – a secondary, unsecured loan offered in conjunction with the initial amount.

An advantage of the SBB is that the borrower does not begin repaying the loan until after the first year, allowing newly formed small businesses to build cash flow during their first year in operation.

“I’ve been a business owner before, but the SBB program made the difference this time. It provided that initial staying power to get through the startup phase until the income starts to come in,” said Mr. Ottmers.

Michael Carson, senior vice president and commercial lender at FNBT, said the SBB is vital to providing customers with flexibility and options.

“It allows us to be creative and structure the loan to suit the unique needs of customers who sometimes need just a little bit more to get their business off the ground.”

Visit fhlb.com/sbb to learn more.

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