MENDENHALL — Peoples Bank was ranked number four nationwide for the number of loans it made to businesses under the U.S. Small Business Administration (SBA) ARC Loan Program, which ended in September.
During the life of the ARC program, Peoples Bank was recognized on multiple locations by national media, with the bank and CEO Dennis Ammann being featured on ABC World News Tonight and in The New York Times.
The ARC Loan Program was established as part of the Economic Recovery Act to infuse working capital into business facing difficult economic conditions.
During the tenure of ARC loan availability, Peoples Bank made 286 ARC loans totaling more than $9.3 million. As a result, Ammann noted that Peoples Bank “saved our customers nearly $2 million in interest”.
The interest savings came as a result of the terms of ARC loans, which provided funding up to $35,000 in short-term relief for viable small businesses, according to documents released by the SBA.
The loans featured a 100 percent guaranty from the SBA and allowed loan proceeds to be disbursed over a six-month period with repayment of loan principle deferred for a full year; with total repayment extending up to five years. The program also featured a “no-fee” provision for costs normally remitted to the SBA. The loans were provided interest-free to their recipients.
Peoples Bank has offices in Mendenhall, Magee, Collins, and Puckett.