When President Barack Obama introduced his just-less-than $800 billion stimulus package in early 2009, he probably didn’t realize he’d be taking your tax dollars and redistributing $20,000 of them to Callaghan’s Irish Social Club at the corner of Marine and Charleston Streets in the Oakleigh Garden District.

In fact, when a small business loan with Compass Bank came through, Callaghan’s owner John Thompson didn’t realize he was the recipient of monies associated with the American Recovery and Reinvestment Act.

“I just did it because we needed extra space for private parties that was non-smoking.” Thompson said of the addition he financed through the loan. “I just went through Compass and they arranged it that way I guess. Maybe they said something about it, but I don’t remember. I just signed a loan.”

While it might be alarming to think your hard earned and eagerly collected federal tax dollars are going directly into Uncle Sam’s right hand only to leave his south paw on their way to a fine drinking establishment such as Callaghan’s, remember, they are loans. They are meant to be repaid.

Besides, Callaghan’s isn’t the only small business in town unknowingly – or perhaps well aware – of their receiving stimulus-based loans.

$1,225,000 in similar loans have been taken out by various small businesses in the greater Mobile area, according to recovery.gov. Among the businesses taking loans are veterinarians, law offices, dentistry practices and gardening centers such as Zimlich Garden and Patio Center.

Donald Zimlich, president and “chief hole digger” at Zimlich’s says the stimulus money helped him refinance the mortgage on his business as well as maintain a rotating line of credit, something Zimlich says has been common practice in his business for years.

“There were a few more personal questions. You know our personal income and personal standing have something to do with it,” Zimlich said of the loan process. “There were more loopholes to it, I’ll say that.”

Zimlich said the loopholes were worth it because of other perks like favorable interest rates.

“It was really to our benefit because of the interest rates. To keep the business going and not let – you know we’re local, local, local, – everything’s from around the area from our parsley to our herbs,” Zimlich said. “We keep local people on a regular basis. We don’t like to hire just seasonally, so if you think of the stimulus package as something far, far away, it’s not. You’ve got people in Mobile that are able to have a full-time job at a small business with medical benefits, whereas they wouldn’t have it otherwise.”

Zimlich, besides noticing first hand the “Main Street” benefit, is also aware of the stigma that the stimulus package has only helped large corporations who still fail to operate in the black.

“I think people think of it only in terms of Chrysler or Ford and the bailouts that are sour to their tastes, but they worked. My theory is, when government finally tickles down, businessmen like me who really know what to do with their dollar, it’s a good thing,” Zimlich said. “We want to maintain our medical package they way we want to maintain it. We don’t want to be manhandled with that. And, that money that trickles down will allow us to keep all that in place and let our people live the kind of lives they want.”

Greg Clarkson Executive VP and Small Business Administration division manager of BBVA Compass Bank says the appeal of the stimulus-funded small business loan is the waiver of a guarantee fee for small business owners.

“The stimulus allows for the borrower to apply for an SBA loan without having to pay a guarantee fee,” Clarkson said. “Which, that guarantee fee for an SBA loan could be up to three percent of the loan amount. The stimulus provision saves the borrower money. The process is the same.”

For the banks, Clarkson says, the guarantee the SBA provides goes from 75 percent to 90 percent with stimulus provisions.

“The government recognizes the need for stimulus and they recognize the need for the banks to lend money,” Clarkson said.

Zimlich recognizes the need to borrow money as well, but says you’ve got to do so with a tight fist.

“We live real close to the ground and that’s how we like it. We’re surviving the economy very well with the recession, but it’s because we’re close to the ground and don’t spend anything before we make it,” Zimlich said. “It works for us because we listen to what people want. We aren’t going to go get some stimulus package money and go buy some piece of equipment we don’t know how to use,” Zimlich said.

When you’re void of financial trouble, as Zimlich notes, it’s hard to have a particularly bad day.

“When my day’s going good, all the plants fit in the hole,” Zimlich said.