This paper presents the theoretical model to investigate the effect of Coulomb damping in the sub-structure of a foil bearing. Foil deflection is restricted by friction of bumps. Equivalent viscous damping of the bump foils is derived from the Coulomb friction. Dynamic equation of the bumps is constituted by stiffness and damping terms. This point give the difference from Heshmats frictionless and simple compliance bump model. The fluid is modeled with the compressible Reynolds equation. A perturbation approach is used to determine the static and dynamic performance of the bearing from the coupled fluid-structural model. The analysis result shows that the static and dynamic performance is enhanced by bump friction. This analysis technique would be extended to development of a high performance bearing.