9/30/2021
Summary
HWWS has historically been included in Environmental numbers. Because these are growing and are Consumer loans,
they have been moved to a separate portfolio. These will be separated on the next Financial Report.
FY 2018 FY 2019 FY2020 FY2021
Water and Waste Water Loans
Applications 29 30
Household Water Well Systems
Home Improvement Loans
General Updates
This quarter marked the retirement of Deborah Temple as of 9.30.21 and a busy year end for the new Director of
Lending. A revised Loan Policy for Board approval today includes adding two new Loan Committee members:
1. Arthur Pittman, recently retired from the Environmental Team, former USDA added to Environmental Loan.
2. Deborah Temple to the Small Business Loan Committees.
Additional Grant application awards were received late Sept and October including:
TLL Temple Grant $850,000
Nuestra Casa CDFI Grant $135,000
RLF Grant 2021 $334,000
RLF Grant 2020 extended till 3.31.21
This report includes loans through September 30, 2021. Final PPP loans.
290 PPP Loans - $4,117,865
o 51 Environmental - $1,499,460
o 239 Small Business - $2,618,405
o 183 loans have been already forgiven and paid off - $2,848,975
o 100% of those submitted for forgiveness have been approved.
Policy Exceptions PPP loans were made according to the SBA regulations at 1% interest and unsecured. This is an exception to policy for
rate and collateral.
Alternative PPP loans were made to the 7 PPP applicants who did not make the early cutoff of PPP when funds ran out.
These loans mirrored the 1% rate of the original PPP terms. CU used grant funds to finance the interest rate departure
from loan policy rates for small business of 6 to 10% rate. No collateral was required again to mirror the PPP terms, an
exception to policy.
In February due to the heavy snow storm damage, Water Wastewater Loans were made according to the Small Utility
Emergency Loan Program at 1% for the first year and 2% for the 2nd year, an exception to the 3.5% rate in policy.
Throughout the year, Small Utility Recovery Loans have been made at 2% for the first two years. Subsequent year rates
were 3.5% for loans with maturity of 5 years, not 4%. 10 year loans were made at 4% not 4.5%, and 15 year loans were
made at 5%, not 5.5% according to policy. This program begun 9.30.20 continues to encourage portfolio growth and be
responsive to Covid – 19 economic times.
Problem Loans A simplified risk rating system that ties to the loan loss reserve was implemented third quarter. Some notes have been
added in red for this report
Environmental Loans:
Total Owed Comments Modified Risk Rating /Change
Old Tamina $305,047.29 This client is engaged in a federal lawsuit. At this time, CU is waiting for the determination if the loan from USDA RD will be funded and repay all or a portion of our loan
N/A Doubtful
Free State $185,724.69 CU staff has met with one of the key individuals involved in this project. He has the capacity personally to repay the loan and has been provided with payoff information. This system also continues to work for permanent financing
N/A Doubtful
Smith Management $192,059.38
Investor-Owned Utility in Lubbock Texas. Paid as agreed until November 2020 when payment was returned. In calls CU learned that the owner had sold the business in April of 2020 and had not informed CU. An attorney in Lubbock has been engaged to clarify ownership and pursue collections. A new interim manager was appointed by TXEC in May and is in place overseeing repairs of problem equipment. He is now making monthly payments as of 10.14.2021.
Changed to Substandard
Risk Rating /Change
Safe Drive $5,783.64 Reboot Loan Paying regularly -
SBA made 6 payments; Client has received TA but is struggling. Payments are current
From Substandard to Watch W/O
KDJ Builders $9,359.87 Client has started to make payments NSFs made a double payment in September. No financials, trying to establish regular calls
ADFA Reserves;
Simple Fix Hair Salon
$3,964.08 Client has had several setbacks but is gradually reducing the loan balance. Loan Modification – will resume payments at the end of October, although a family commitment has taken her away from work.
Client is making twice monthly payments after SBA made 6 months of payments.
ADFA Reserve
Watch Workout
Pop’s Market $12,219.23 Client received a 3 month deferment with COVID and has begun making payments Still paying
Payments have resumed
That’s So You Boutique
$34,505.00 Has started business & made 6 payments this year with the full amount going to pay accrued interest. Last payment made July 8th. Started working nights at Amazon. Plans to make two payments with the signing bonus Oct 30.
CU agreed to forgive remaining interest and restructure now that she made 6 payments. After Modification was made to bring loan current in July and includes ACH payments
ADFA Watch-TA
Upkeep Services $5,864.02 This client has struggled but has continued to try to repay loan. Still paying
Is paying $100 per month via ACH at this time
None Doubtful
Loan balance over 90 days
Home Improvement 0
Amount Rural? Race/Ethnicity Gender PPC Recovery Risk SBA
Kay’s Kute Fruit
Kountry Boy Kookin’
Female Owned 58%
Black Owned 58%
Hispanic Owned 4%
White Owned 38%
Airport City Executive
Mot & Ed’s Southern
Jackson Glow- Up Whitening
Elite Construction
Distinction LLC $117,050 Rural Black Male Yes No Watch No
Elevate Bungee
Bic’s Cajun Kitchen
Sweet Scoops $10,000 Urban White Male No No Acceptable Yes
Marfa Meats $101,500 Rural White Female Yes No Acceptable No
Rainbow Educational $8,120.00 Rural BLACK FEMALE No
No
No
No
No
Exams Plus $40,550.00 Urban WHITE BOTH No No Doubtful Yes
Alvertis Gatlin $20,830.00 Rural BLACK MALE Yes No Strong Yes
Forgotten Cuts $8,120.00 Rural WHITE FEMALE No No Acceptable Yes
Every Little Thing, LLC $41,107.50 Urban WHITE FEMALE No
No
No
No
No
Acceptable No
Knox Turf Pros $21,740.00 Rural WHITE MALE No No Acceptable Yes
Christopher M Lewis Dba Part
Time Gamers $13,195.00 Rural BLACK MALE No
No
Exception 1
New Products Communities Unlimited was approved for the first ever Small Dollar Loan Grant to revitalize the Nuestra Casa home
improvement loans in S. TX. This product will be revamped to provide for a credit reporting feature to enable this
underserved community to build a solid credit score by providing credit counseling, text reminders prior to payment due
date, and hopefully debit card or smart phone app payments.
New Lenders and New Offices
Two new Economic Development Lenders were hired to begin in Oct and Nov. One located in Ms and one in TX. An
additional lender for E. Tx will be found to establish a presence for the TLL Temple grant lending in the PPC. A bilingual
consumer lender will be hired to join our South TX team in the Rio Grande Valley office.
Economic Aid Act
The Economic Aid Act as of 2.18.2021 provided payments for SBA Microloans made before March 27, 2020 (five months
of additional payments) and for Microloans made between February 1 and September 30, 2021 (3 months of additional
payments). CU took advantage of this opportunity to close as many SBA microloans as possible prior to the deadline.
This focus resulted in a total of 12 SBA microloans for the quarter. $234,612.50.
Small Business Loans – Historical Losses
Clients Loan Defaults Recoveries ADFA
Recoveries AEDC
Recoveries Assisi
Recoveries Other
Law Office Ian Page
Denim & Diamonds
2021
Hope Appliances