Delivered through FHLBank Pittsburgh enrolled members, Banking On Business (BOB) provides secondary unsecured loans, in conjunction with member first loans to help bridge the gap between what a small business needs and what a member can lend. BOB offers a set-aside for minority- and women-owned small businesses through the Banking On Business Inclusion and Equity fund (BOBIE).
On average, each BOB dollar FHLBank Pittsburgh contributes leverages $6 in financial resources to small businesses.
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.
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. To qualify for BOB, the business must qualify as a small business based on
SBA size standards and meet other eligibility criteria as defined in the
BOB Program Manual.
To apply for BOB or BOBIE funds, members:
- Submit a one-time Enrollment Form and Enrollment Agreement to access the BOB product
- Members who wish to participate in BOBIE also must execute an Addendum to the BOB Enrollment 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. Members will be limited to an initial cap of $1,250,000 in BOB and BOBIE approvals. If funds remain available six months after the round opening, the funding 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 BOB and in BOBIE.
See examples of
BOB businesses that have had a beneficial impact on their communities.