November 27 2024

Small Business Boost Fulfills Arkansas Couple’s Small Business Dream

Hunter and Whitney Caraway had a vision for their family’s future tied to their memories of growing up in a small town. Their dream was to own their own business, work close to home and play a vital role in their Northeast Arkansas community of Cave City — population 1,922. A $125,000 Small Business Boost (SBB) loan from the Federal Home Loan Bank of Dallas (FHLB Dallas) helped them achieve that vision.

The Caraways found their opportunity in a prime piece of Main Street real estate: one lot with a successful coffee shop and a second building they could convert to a pizza place that they named Pizza Pro.

With a willing seller, they turned to Bank of Cave City for a small business loan for their business, Caraway Food Company.

The couple had equity in the form of real property, but without pledging all as collateral, they did not meet the bank’s lending criteria. To fill the gap between the amount of the loan Bank of Cave City would provide and the amount the Caraways needed to finance the purchase, Bank of Cave City helped the couple obtain a secondary, $125,000 FHLB Dallas SBB loan.

SBB supports small businesses by providing funds for building, land or equipment purchases, construction and related uses.

“The SBB gave us a chance to get our pizza business up and running — and to build the team we wanted, which is critical for a service-oriented business,” Mr. Caraway said.

Starting with five employees, Caraway Food Company quickly grew to include eight full-time and up to 14 part-time employees. New office space and a drive-through at the Pizza Pro are planned next steps.

Like all FHLB Dallas community programs, SBB loans are provided through a member institution. In this case, Bank of Cave City.

“In a rural area, we rely on our small businesses for so many things,” said Bank of Cave City Loan Officer Dustin Dayberry. “SBB allows us to make loans we couldn’t otherwise make. Our ability to support small businesses enhances the local economy and helps to create a vibrant and appealing community.”

Steve Otto, head of Member Sales at FHLB Dallas, said the loan program can help FHLB Dallas members assist strong business loan prospects that may have a gap in financing that FHLB Dallas can fill.

“Small businesses have been called the backbone of our communities, and the SBB is one way we help our members finance startups and existing businesses looking to form or expand, he said.

Stories