SPARKMAN, Ark., July 20, 2010 (GLOBE NEWSWIRE) -- As a long-time customer of Summit Bank of Arkadelphia, David Brazeale, vice president of Gene Brazeale Lumber Company, Inc., approached the bank for a loan when it was time to purchase four new work trucks for his company. Seeking only a loan, Mr. Brazeale was surprised when he also qualified for an accompanying $9,245 Economic Development Program Plus (EDPPlus) grant to assist with the purchase.
The Economic Development Program (EDP) provides favorably priced advances to FHLB Dallas member institutions, such as Summit Bank of Arkadelphia, to support economic development and community revitalization projects that are qualified based on location, income, or targeted services. If a member institution is approved for an EDP advance, the member's customer may then be eligible for an accompanying EDPPlus grant. EDPPlus grants are noncompetitive and available on a first-come, first-served basis to promote and enhance small business development in underserved areas or to underserved populations.
"I had never heard of the program, but was thrilled to find out about it," said Mr. Brazeale. "I really don't see a downside. It's always nice to have access to extra capital when running a business."
FHLB Dallas member institutions may apply for up to $100,000 in EDPPlus grants on behalf of their customers, with each qualified business eligible to receive a maximum award of up to $25,000. Summit Bank of Arkadelphia has steadily increased its activity in the EDP and EDPPlus programs since 2009.
"Our goal is to run through our maximum EDPPlus allocation each year," said Chris Wewers, executive vice president and chief financial officer at Summit Bank of Arkadelphia. "We want to support local business in any way possible. Businesses like Brazeale Lumber Company provide jobs and drive revenue for our city, which benefits our community as a whole. As long as the programs are available, it's a great way for us to look out for the best interest of our clients."
Gene Brazeale Lumber Company, Inc. was established by Mr. Brazeale's grandfather, and has been in business for almost 40 years. Since 1971, the company has specialized in saw mill and wood products, manufacturing lumber and railroad crossties. The new pick-up trucks are company vehicles for employees, replacing older vehicles that had worn out over the years.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $58.7 billion as of March 31, 2010, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.
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