FHLB Dallas offers SBB loans

The Small Business Boost (SBB) is an economic development program offered by the Federal Home Loan Bank of Dallas (FHLB Dallas) to participating members interested in lending opportunities that establish or grow businesses in their communities.

SBB can help banks with customers and local businesses that have a strong business plan but lack the equity needed for loan approval.

The SBB fills the gap between what an FHLB Dallas member can finance and the loan request made by an eligible small business. The SBB works by providing a secondary, unsecured loan in conjunction with the member’s primary loan(s) to qualified small businesses.

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 the small business an unsecured loan up to $125,000 or 50% of the member’s loan in SBB funding, whichever is less. 

As small businesses grow and repay the SBB loan, funds are recycled back into the SBB program to be reinvested in other small businesses throughout the District, facilitating job creation that otherwise might not occur over time. 

FHLB Dallas allocated $3 million for SBB lending in 2024, and these funds are available until they are exhausted or Dec. 6, 2024, whichever comes first.

In 2023, FHLB Dallas loaned $3.4 million to small businesses through the SBB, which assisted 46 businesses and created or retained 153 jobs. 

Steve Otto
[email protected]
214-441-8711