step 1 - identify an sbb opportunity you’ve enrolled in ......(sbb) program! now let’s map out...
TRANSCRIPT
You’ve enrolled in the Small Business Boost
(SBB) program! Now let’s map out your next steps.
Project cost$320,000
SBB$36,000
Total funding$320,000
Max bank loan$224,000
Borrowercontribution
$60,000
Step 1 - Identify an SBB opportunity
SBB IS A GOOD FIT FORLenders who need to fill the gap between what they can financeand a small business loan requestA small business that meets the Small Business Administration’s (SBA) eligibility standardsBusinesses that will create or retain at least one job for every $50,000 in SBB funding, or that qualify under alternative criteria (i.e., minority-, woman- or veteran-owned)A business that could benefit from a lower total loan paymentin its first year
Step 2
STRUCTURE AND PREPAREAs you structure your SBB loan, utilize this calculator to determine the maximum amount of FHLB Dallas assistance availableWhen structuring the transaction with SBB, please note:
View the amortization schedule
Small business can recieve an SBB loan of up to $100,000 or 50 percent of the lender’s fundingIf the project involves a public gaurantee, the maximum SBB loan amount cannot exceed 50 percent of the non-guaranteed portionLender must provide at least 40 percent of total project financingMember may charge up to 3 percent interestReal Estate transactions must be at least 51 percent owner occupied
dentist needs to expand its location, but can only invest $60,000 in the small business. The business requests
Map Your Boost
Aa loan of $260,000, a loan you want tofund, but your institution’s underwritingstandards require 30 percent cash equity.
This is how SBB brings the deal together.
Step 6
SBB Loan Reimbursement
Step 3APPLY FOR SBB FUNDS
Step 4
APPROVAL
Submit the following forms and check for funds availability (SBB is first-come, first-served).
SBB registration form Lender’s credit write-up/loan memo Proof of business existence
Email completed forms to [email protected]
SBB Repayment
Only employees of the lender, who are pre-authorized to execute advances (per FHLB Dallas signature card), or a designee, may execute the application.
FHLB Dallas will notify your institution within 10 days of approval, which is evidenced by a confirmation email from FHLB Dallas
YEAR SMALLBUSINESS MEMBER FHLB
DALLAS
1
2
3
None None None
Principalonly
Principal +3% interest
Principal+ up to
3% interest
Principal+ up to
6% interest
Principal+ up to
3% interest
Principal+ up to
6% interest
Max SBBAmortization
180 Months
120 Months
Max SBBLoan Term
120 Months
84 Months
Real Estate
Non-Real Estate
Contact Community Investment at 800.362.2944 or [email protected]
for additional assistance
*SBB loan terms cannot exceed member terms
Step 5CLOSE & FUND THE LOANS
Prepare closing documents within three months of application approval and include the SBB repayment language.
Drafts of loan documents are requiredtwo days prior to closing. Uponapproval, execute the loan documentsand fund loan to the borrower.
To request SBB loan reimbursementsubmit the following to FHLB Dallas:
Executed Member Loan Note Executed SBB Loan Agreement SBB Funding Request Form
After closing, FHLB Dallas deposits SBB loan funds into lender’sDemand Deposit Account and a final amortization schedule for the borrower and lender will be provided by FHLB Dallas.
REPAYMENTThe SBB borrower makes monthly payments to your institutionbased on the SBB amortization schedule. Your institution thenforwards what is due to FHLB Dallas annually. There is norepayment in year one.