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The Lowndes County Unincorporated Wastewater Program secured necessary operating funds recently, ending the organization’s dilemma of how to provide services without working capital.

The organization’s president Carmelita Arnold said First Citizen’s Bank agreed to extend the board a line of credit against its $1.5 million American Rescue Plan Act (ARPA) grant award. 

“We have been approved for working capital,” Arnold said. “[Lowndes County Commission Chairman] Charlie King, Jr. helped us get in touch with First Citizens Bank, and they approved us so we could have some capital.”

According to Arnold, the organization had been largely unable to collect on drawdown payments for the grant which requires proof that approved work has been completed and paid for before funds are issued. Arnold petitioned the commission for help in March, asking commissioners for a loan of working capital before a motion to extend the money, $50,000, failed to pass.

First Citizens Bank loan officer, Crenshaw County Commissioner Charlie Sankey, Jr., confirmed the loan, extended based on the organization’s grant award.

“Because LCUWP didn’t have any funding sources outside the money the commission might budget to them, they didn’t have resources [to perform work the grant required prior to payouts],” Sankey said. “They had to try to get a line of credit that they could then reimburse. They came to me.

“Many banks would not do that kind of loan… I’m taking their contract from ADPH (Alabama Department of Public Health… and thereby I lend them money against the award letter. Basically, it is an unsecured loan from a banking standpoint, but [we made it] because we try to help the community.”

Arnold said the $1 million line of credit will enable the organization to go beyond the three septic tank systems it has already installed and move toward the next 12 ready for installation.

“Draws on the line will be made according to what I need to pay out,” she explained. “Then, I’ll draw down the grant to pay it back.”