HATFIELD, Ark., July 28, 2010 (GLOBE NEWSWIRE) -- Smith Pallet, Inc. has been in operation since 1949, and its current owners Lyle Wilson and his father, Jim Wilson, have been serving West Arkansas in the wood products and pallet mill business for more than 20 years.
In order to increase production, Lyle Wilson approached Union Bank of Mena, where he has banked for many years, for a loan to purchase two fork-lifts and a new compressor for his business.
"Our business is continuously growing, but our production was slowed down due to lack of equipment," said Mr. Wilson. "I am fortunate to have such a good relationship with Union Bank of Mena, and when I asked about a loan, they introduced me to options that I didn't know were available."
Union Bank of Mena is a member of the Federal Home Loan Bank of Dallas (FHLB Dallas), which enables it to utilize the FHLB Dallas Economic Development Program (EDP) and the Economic Development Program Plus (EDPPlus) grant program. EDP provides favorably priced advances to FHLB Dallas member institutions, such as Union Bank of Mena, to support economic development and community revitalization projects that are qualified based on location, income, or consumer demographics. 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.
Mr. Wilson qualified for a loan through Union Bank of Mena, and an accompanying $6,776 EDPPlus grant to purchase the new equipment. Since then, Smith Pallet's production has increased and two new positions were created.
"Smith Pallet, Inc. is a well-established and long-standing business in our community," said Tim Rodgers, senior vice president of lending at Union Bank of Mena. "We are proud that we could contribute to their success by facilitating an EDPPlus grant from FHLB Dallas. The EDP and EDPPlus programs help us provide our customers with access to capital outside of a loan or traditional banking. It's a great program and a great way for Union Bank of Mena to give back to our community."
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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