Arkansas Federal Credit Union and FHLB Dallas Provide Financing to Rowdy Ruff House

Small Business Boost Loan Gives Startup a Leg Up

NORTH LITTLE ROCK, Ark.--(BUSINESS WIRE)--A Small Business Boost (SBB) loan from Arkansas Federal Credit Union (AFCU) and the Federal Home Loan Bank of Dallas (FHLB Dallas) helped fund the opening of a premium doggie daycare in North Little Rock, Arkansas.

Funds from the SBB program fill the gap between what an FHLB Dallas member can finance, and the loan request made by an eligible small business. In this case, Rowdy Ruff House received funding in the form of an SBB loan to fund interest payments on the construction phase. Jerry Wilson, owner of Rowdy Ruff House, said the loan was a welcome breath of fresh air.

“The SBB was the final piece of the puzzle for us,” he said. “We had a cash flow deficit our first year, because during construction we had no income coming in. We needed the Small Business Boost loan for the interest during the construction so we could get the business going.”

If the funding had not been available, he would still be looking for ways to fund his construction payments. “Availability was key for us,” he said.

He credits the interest rate terms as key to the success of the project. There are no repayments due on an SBB loan during the first year, which helps to improve initial cash flow for the small business and reduces the member’s risk exposure.

“It’s so important for small businesses to have cash flow in the first year,” said Randy Williamson, senior SBA lender and commercial lender at AFCU. “The SBB loan helps give them some breathing room.”

Steve Otto, head of Member Sales for FHLB Dallas, said the SBB program not only helps the small business, but the whole community.

“As small businesses grow and repay the loan, the funds are recycled back into the SBB program to be reinvested in other small businesses which can create more jobs over time. It’s a win-win for everyone,” he said.

In 2023, FHLB Dallas loaned $3.4 million to small businesses through the SBB, which assisted 46 businesses and created or retained 153 jobs. Learn more about the FHLB Dallas Small Business Boost program, including eligibility requirements and application information.

About Arkansas Federal Credit Union

Arkansas Federal Credit Union is the largest financial cooperative and eighth largest financial institution in Arkansas, with more than $1 billion in total assets, 130,000 members and more than 400 employees. It is a member-owned financial cooperative that invests back into the Arkansas communities where our members live, work and play. Membership is open to all Arkansans. AFCU was founded in 1956 and is headquartered in Jacksonville, 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. FHLB Dallas, with total assets of $126.2 billion as of June 30, 2024, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 800 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit our website at fhlb.com.