MAGNOLIA, Ark., June 28, 2012 (GLOBE NEWSWIRE) -- After purchasing the Oil & Lube Express located at 701 East Main Street in Magnolia, Arkansas, in July 2008, David and Melinda Haney have seen increasing sales and high revenues year after year. The corporation is now called Hanco Oil, Inc. DBA Oil & Lube Express, and provides various automotive services, including oil changes, filter and windshield wiper replacements, fluid checks, grease axles and bearings, and tire pressure checks.
Each year, the Haneys service approximately 14,800 vehicles by providing quick, friendly, and professional service to their customers, many of whom return for regular maintenance. Shortly after the Haneys purchased the business, Mr. Haney incorporated tire sales into his product offering. He said many of his customers asked if he sold tires, and he quickly realized that it would be a profitable addition to his services.
"Most oil and lube centers do not normally sell tires, but it made perfect sense to add it to our line of services," said Mr. Haney. "This addition made us more of a one-stop shop for automotive services. Plus, with the recent slump in the economy, we are battling competition from all angles - dealerships are offering free oil changes, many new vehicles now have extended oil change requirements, the price of oil has increased, and a lot more people simply do oil changes and regular maintenance themselves, rather than bringing their vehicle to a service shop. The addition of tire retail was a huge opportunity for us to add another stream of revenue to our business."
Mr. Haney first conducted his tire sales under an RV canopy located on his property. But, as sales increased and his business grew, he needed a more permanent location. He was referred to Farmers Bank and Trust Co. and approved for a small business loan, which qualified him for a favorably priced Economic Development Program advance along with a $25,000 Economic Development Program Plus (EDPPlus) grant through the Federal Home Loan Bank of Dallas (FHLB Dallas).
EDP provides favorably priced advances to FHLB Dallas member institutions, such as Farmers Bank and Trust Co., to support economic development and community revitalization projects that qualify by location, income, or targeted services. 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 and job creation in underserved areas or to underserved populations. FHLB Dallas has made $1 million available in EDPPlus grant funds in 2012.
"Mr. Haney approached us as a prime candidate for the EDP and EDPPlus grant program," said Jeff White, assistant vice president of commercial lending at Farmers Bank and Trust Co. "He is a successful and prominent small business owner in our community. And, as a local lender, Farmers Bank and Trust Co. can utilize FHLB Dallas's programs to further promote small business and economic growth. It was a privilege working with Mr. Haney, and this grant will help him get a step ahead in his business endeavors."
The additional funding enabled Mr. Haney to build a new building specifically for tire retail behind the existing building. He was also able to give his existing building a bit of a facelift by updating the exterior and purchasing new signage, equipment, and inventory. Mr. Haney has already doubled his total tire sales since 2011, and is a recognized Michelin tire retailer.
"This grant has been a lifesaver for me," said Mr. Haney. "It helped me branch out and expand my product offering, which in return has made our overall business more profitable. Our customers really like having all of our services under one roof. I am very grateful to Farmers Bank and Trust Co. and FHLB Dallas for taking a chance and supporting me, especially in a time when funding is low and the economy is slow. It seems like you're always over budget when constructing a new facility, and the grant money gave me the extra cushion to really do things right."
Mr. Haney still has big dreams. He hopes to one day expand his business even further by building a bigger showroom to display and sell over-the-counter products, as well as expand the waiting area for his customers.
"We'll get there one day," said Mr. Haney, "you just have to take it one project at a time. But, as a small business owner, if you're not thinking ahead, you end up falling behind."
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 $34.2 billion as of March 31, 2012, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013