CORD, Ark., March 18, 2016 /PRNewswire-USNewswire/ -- Auto mechanics aren't on every corner in this part of eastern Arkansas. But in October 2014, Tim and Lisa Davis transformed one intersection at the crossroads of Newport and Jackson counties by founding Cord Tire and Automotive Repair.
To open the shop at 9500 White Drive in Cord, they secured funding through a loan from First Community Bank that was funded by an Economic Development Program (EDP) advance from the Federal Home Loan Bank of Dallas (FHLB Dallas). In conjunction with the loan, the Davises also received a $10,000 EDPPlus grant from FHLB Dallas, which they used to purchase a new lift, tire machine, and needed tools.
"Mr. and Mrs. Davis were committed to making this dream a reality, and First Community Bank was ready to help them," said Brian Goff, vice president of Commercial Lending at First Community Bank. "We were so pleased about this grant. It has made a real difference for them. Without it, they might have had to finance the tools they needed."
The opening of Cord Tire and Automotive Repair created four new jobs in this rural community of approximately 350 people. It is the only auto shop within a 20-mile radius, and that lack turned out to be a positive for Mr. Davis, who leveraged his 17 years of industry experience to open the location. Ms. Davis works part-time at the shop, handling the books.
"First Community Bank was really great to work with," Mr. Davis said. "They were really nice and very helpful when we decided to go out on our own."
In 2015, FHLB Dallas made $1 million available for EDPPlus grants, assisting 50 small businesses in the Bank's five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. In Arkansas, EDPPlus grants totaling $653,596 were awarded to 32 small businesses. In 2016, FHLB Dallas has again offered $1 million in EDPPlus grants.
Guidelines of the EDP require clients to work with a local small business development center. The Davises consulted with the Arkansas State University Business and Technology Development Center, which helped them develop their business plan, decide on advertising strategies, and provide industry research.
EDPPlus grants are awarded in conjunction with EDP advances and are available on a first-come, first-served basis to promote and enhance small-business development and job creation.
Gustavo Molina, SVP and chief banking operations officer at FHLB Dallas, said the EDP advance and grant program support economic development activities, which improve the quality of life for many people.
"The EDP program, with its signature EDPPlus feature, helps our members make a difference in their communities," he said. "We're pleased to partner with First Community Bank in supporting small business development in this community."
About First Community Bank
First Community Bank, which is locally owned and managed, opened Aug. 4, 1997, in Batesville, Ark., and operates 17 full-service branches in Arkansas and Missouri and a stand-alone mortgage origination office in Craighead County, Ark. First Community employs more than 266 professional bankers and reports assets as of Aug. 31, 2015, of more than $1 billion.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank system created by Congress in 1932. FHLB Dallas, with total assets of $42.1 billion as of December 31, 2015, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to approximately 850 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. Visit fhlb.com for more information.
Federal Home Loan Bank of Dallas
SOURCE Federal Home Loan Bank of Dallas