EDP Plus Grant Does the Heavy Lifting for Prosperity Construction

MADISON, Miss., Oct. 8, 2014 /PRNewswire-USNewswire/ -- Prosperity Construction was a small company at a crossroads: they needed additional equipment to grow. The 5-year-old firm might miss business opportunities if they did not obtain another bulldozer and additional work trucks.  Prosperity Construction cofounders and cousins Brian and Thomas Cronin had built a strong foundation, with 15 years of combined experience in commercial construction. However, they knew the next step for their business meant they had to dig deeper.

Brian Cronin spoke with his bankers, Mark Ouellette and Gary Nowell of BankPlus in Ridgeland, Mississippi. They helped him with applications for the Economic Development Program (EDP) advance and EDP^Plus grant program.

"The last couple of years, we have ventured more into site work, drainage, road work, and all the things that go along with that," said Brian Cronin. "We feel that is where we excel and can offer the best service to our customers." When founded in May 2009, the company had focused on forestry, demolition, and excavation.

Prosperity Construction qualified for a loan from BankPlus, funded by an FHLB Dallas EDP advance, and they also were awarded an accompanying $11,400 EDP^Plus grant from FHLB Dallas, which allowed them to invest in the needed equipment.

"Due to BankPlus' involvement in the community, we were familiar with Prosperity Construction and their reputation for solid business," said Mr. Ouellette, BankPlus first vice president and director of affordable housing. "They are good, trustworthy people. Their business was growing quickly, and they needed to buy new equipment to continue their growth."

Mr. Ouellette connected them with Mr. Nowell, a BankPlus senior vice president and loan officer.  

"The EDP advance and the EDP^Plus grant gave Brian and Thomas' business the exact boost it needed," said Mr. Nowell. "They are hard-working, and they have the know-how, the desire, and the work ethic. When they acquired extra cash, they bought some new equipment and took on bigger jobs."

What's more, the EDP^Plus grant, along with the loan, helped Prosperity Construction expand its payroll.

"The capital allowed us to acquire some equipment we wanted to purchase immediately for several jobs," said Brian Cronin. "It also allowed us to hire two new employees." Without it, he said the company's expansion would have been delayed. "It might have cost us a job or two because we needed the equipment and manpower at the time. We wanted to make sure we were well-equipped for our commitments, and the grant, along with the loan, allowed us to do that."

EDP^Plus grants, which are awarded in conjunction with EDP advances and are offered through FHLB Dallas members like BankPlus, are noncompetitive and available on a first-come, first-served basis to promote and enhance small-business development and job creation. In 2014, FHLB Dallas made available $1 million in EDP^Plus grants through its member institutions.

Prosperity cofounder Thomas Cronin knows firsthand the value of the EDP advance and EDP^Plus grant. "Brian and I have a unique relationship in that we share different traits that complement one another. Brian is business-savvy and well-connected, which helps keep the work flowing in, while I am construction-minded and the manager of the projects and personnel," he said. "As any business owner knows, cash flow can sometimes put you in a tight spot. Through this grant program and the help of Mark and Gary at BankPlus, we were able to acquire some much-needed equipment and some working capital. The equipment helped me in the field while the capital helped Brian in the office."

In 2013, CNN ranked Mississippi fifth on its list of "Best States for Entrepreneurs." Trade magazine "Area Development" ranked the state in its top five "For Overall Cost of Doing Business."

"This story is one we are fortunate to hear often, of small businesses being able to move forward and actually being able to do more than originally planned through the funds that are associated with our Economic Development Program advances and grants," said Steve Otto, FHLB Dallas vice president and director of member sales. "We are pleased and honored to contribute to small-business growth. It works for all of us."

Mr. Ouellette of BankPlus said he sees tremendous value in the EDP advance and grant program for other financial institutions to help small companies like Prosperity Construction. "It helps us help our customers. From the start, we are offering products they didn't know existed, and it helps them look out for their business," he said. "Then, when hearing about EDP^Plus grants, they say, 'Wait! There's grant money?' It's a great tool to bring in new business and to solidify existing relationships."

As for Prosperity Construction, the eight-person firm plans to continue living up to its name. "We strongly believe that our relationships with our customers and employees will surpass our work," Brian Cronin said. "That being said, we know our identity as a company. We must keep costs down so that we can deliver a cost-effective but excellent product while establishing long-lasting relationships in the process. We want to be involved in the community, and we understand the importance of delivering first-class service and protecting our name and integrity along the way." 

About BankPlus
BankPlus, with total assets of more than $2.4 billion, has over 60 banking offices in 33 Mississippi communities. BankPlus offices are located in Belzoni, Bentonia, Brandon, Byram, Canton, Clinton, D'Iberville, Durant, Flora, Flowood, Gluckstadt, Hernando, Holly Bluff, Horn Lake, Isola, Jackson, Lexington, Madison, Meridian, Newton, Olive Branch, Pearl, Picayune, Pickens, Poplarville, Quitman, Ridgeland, Shubuta, Southaven, Stonewall, Tchula, Waynesboro and Yazoo City. For additional information on BankPlus, please visit www.BankPlus.net.

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 $33.6 billion as of June 30, 2014, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.

Contact:

Corporate Communications
Federal Home Loan Bank of Dallas
www.fhlb.com
(214) 441-8445

Photo - http://photos.prnewswire.com/prnh/20141008/151110
Logo - http://photos.prnewswire.com/prnh/20140729/130876

SOURCE Federal Home Loan Bank of Dallas