A Small Business Boost (SBB) loan from Arkansas Federal Credit Union (AFCU) and the Federal Home Loan Bank of Dallas (FHLB Dallas) has provided crucial funding for the opening of Rowdy Ruff House, a premium doggie daycare in North Little Rock, Arkansas.
Jerry Wilson, the owner of Rowdy Ruff House, expressed his gratitude for the loan, noting its significant role in overcoming a financial shortfall during the construction phase. “The SBB was the final piece of the puzzle for us,” Wilson said. “We had a cash flow deficit in our first year because there was no income during construction. The Small Business Boost loan covered our interest payments during this period, enabling us to get the business off the ground.”
Without the SBB loan, Wilson would have faced challenges in finding funds for his construction payments. “Availability was key for us,” he added, highlighting how critical the loan’s terms were to their success.
The SBB program fills the financing gap between what an FHLB Dallas member can provide and the total loan amount requested by a qualifying small business. In the case of Rowdy Ruff House, the loan specifically funded interest payments during construction, helping to ease the business’s cash flow in its initial phase. The SBB loan also offers the benefit of no repayments in the first year, which further reduces the financial burden for new businesses.
“It’s essential for small businesses to have strong cash flow in their first year,” said Randy Williamson, Senior SBA and Commercial Lender at AFCU. “The SBB loan gives them some breathing room to get through that critical early period.”
Steve Otto, Head of Member Sales at FHLB Dallas, emphasized that the SBB program is not only beneficial for individual businesses but also for the broader community. “As small businesses grow and repay their loans, the funds are recycled back into the program to support other businesses. It’s a win-win for everyone,” he said.
In 2023 alone, FHLB Dallas provided $3.4 million in loans to small businesses through the SBB program, assisting 46 businesses and creating or retaining 153 jobs.
About Arkansas Federal Credit Union
Arkansas Federal Credit Union is the largest financial cooperative in Arkansas, with more than $1 billion in assets, 130,000 members, and over 400 employees. Founded in 1956 and headquartered in Jacksonville, Arkansas, AFCU is member-owned and committed to investing in the communities of Arkansas.
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. With total assets of $126.2 billion as of June 30, 2024, FHLB Dallas supports housing and community development through loans and credit products to its approximately 800 members across Arkansas, Louisiana, Mississippi, New Mexico, and Texas.
