Banking on Business (BOB) is a financing program offered through the Federal Home Loan Bank of Pittsburgh, of which Enterprise Bank is a member, and is designed assist the growth and development of small businesses. Both startup and expansion projects are eligible for the BOB program, of which Enterprise Bank is an active participant.
Typically with this type of loan, a portion of the project funding comes from the Bank, either on a conventional or SBA guaranteed basis, which is complemented by borrower equity and/or BOB funding for up to half of the Bank’s loan amount in the project, up to the BOB program maximum loan amount of $200,000. BOB loans are unique and assist significantly in improving the initial cash flow of the Borrower, as in the first year of BOB financing, nothing is repaid on the loan by the business borrower with the BOB funding serving as initial quasi-equity. In the second year, principal begins to be repaid but with interest at a rate of only 3%; and in the remaining years to maturity, repayment of principal and interest is made at a negotiated rate between the Bank and business borrower.
To find out more about accessing an FHLB Banking on Business loan with Enterprise Bank specific to your business needs, call (412) 487-6048.