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HomeMy WebLinkAboutV.A - Dakota County OTB Narrative Report - Q2 2023 Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 Q2 2023 ending 6.30.2023 Clients Served YTD Client Inquiry 3 Existing - Challenged 9 Existing -Opportunity 36 Pre-start planning 35 Start-up 19 Total 102 Business Owner Demographics YTD Low-Income Owned 41 BIPOC or Immigrant Owned 48 Woman Owned 56 Financing & Access to Capital YTD Approved (YRLY Total) $ 526,920.00 Equity (YRLY Total) $ 385,235.00 Facilitated (YRLY Total) $2,630,550.00 Program Hours TA Program HRS 1st QTR 377.00 159 2nd QTR 271.00 213 Total 648.00 372 TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries Dakota County Q2 Report 6.30.2023 2 Industry Segment YTD Construction / Real Estate 2 Food 16 Health/Fitness 9 Manufacturing 2 Consulting 9 Retail 25 Service 27 Other/TBD 12 Total 102 Referral Source YTD Bank Referral 8 Entrepreneur 5 Friends and Family 14 Municipality 33 MCCD Partner 9 Other 11 Web 22 Total 102 City YTD Business Resident Apple Valley 9 6 Burnsville 9 7 Eagan 15 17 Farmington 11 12 Hastings 13 8 Inver Grove Heights 7 7 Lakeville 10 11 Mendota Heights 1 1 Rosemount 7 6 South St. Paul 2 5 West St. Paul 5 5 Other Dakota Co. 2 1 Other/ No Data 11 16 Dakota County Q2 Report 6.30.2023 3 Direct Financing & Access to Capital Business Type: Thai Grocery Store Business Locations: Burnsville & South Saint Paul Owner Residence: Woodbury Referred by: Bank Partner & City of South Saint Paul MCCD Financing: $125,000 Owner Equity: $125,000 Other Financing: $1,920,000 Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well as a deli walk up window. The project is a ground up construction of a multitenant building which will include space for two additional tenants. MCCD financing will be utilized for construction costs. Business Type: Financial Advisory Business Location: Hastings & Lakeville Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $204,000 Owner Equity: $46,000 Other Financing: $255,000 Overview: MCCD approved permanent term financing for a commercial real estate purchase by a growing financial advisory business based in Lakeville with a second location in Hastings. The project was brought to MCCD via a bank partner and the real estate transaction is part of a larger business expansion plan and ownership transition for the Hastings location. The real estate purchase and eventual business purchase will retain 6 full-time jobs and create 1 new full-time position. Business Type: Hair Braiding Salon Business Location: Eagan Owner Residence: Eagan Referred by: MCCD Community Partner MCCD Financing: $25,000 Owner Equity: $21,000 Overview: MCCD approved financing for this immigrant owned start-up hair braiding salon business. The owner has been working in the industry for nearly 10 years, always renting chairs at other salons, and splitting her profits with the salon owner. With startup capital provided by MCCD she will be able to open her own space in Eagan, expand her clientele, and build wealth for herself and her family. In addition to braiding services, the salon will have two rental chairs available and will sell high-quality products that cater to the Black and African community in the area. Dakota County Q2 Report 6.30.2023 4 Business Type: Adult Daycare Homes and Services Business Locations: Business Office in Burnsville with homes owned in Inver Grove Heights (2), Apple Valley (1), Farmington (1), Crystal (1), and newest location in New Hope (1) Owners Residences: Eagan & Prior Lake Referred by: Bank Partner MCCD Financing: $37,200 Owner Equity: $37,200 Bank Financing: $297,600 Overview: MCCD partnered with Amplio and a local bank on this real estate transaction for a growing adult daycare and homecare business. Our participation (which is considered equity by the SBA) at 10% of the total project costs allowed the business owners to meet Amplio’s 20% equity requirement and retain much needed working capital in the business. Through the real estate purchase, the owners are adding a new residential home in New Hope, MN to the existing roster of home care facilities where the business operates throughout the Twin Cities region. One of the business’s owners is Native American and the new location will create new opportunities for the community of New Hope. Business Type: Trucking Business Location: Hastings Owner Residence: Hastings Referred by: Bank Partner MCCD Financing: $25,000 Bank Financing: $44,450 Owner Equity: $16,545 Overview: MCCD approved financing for this startup transportation business. This industry veteran has worked for decades driving trucks for other businesses. He finally took the leap to establish himself as an owner operator in January 2023 when he approached his bank about his business idea. The bank referred him to OTB to help with a business plan and financial projections. After a few months of planning the project was ready to move forward in July. This new business will create one job for the business owner, who is a low-income individual, and allow him the opportunity to build wealth for himself and his family. “I’ve been in the trucking industry for 40+ years. I intend to keep working until I’m unable to and I look forward to continuing to grow my new business. You’ve got to start some place and I started at the bottom. When I asked Royal Credit Union about a loan to start a business as an owner-operator, they referred me to Open to Business. My advisor Natalie Mouilso has been very upfront with me, helping with all the paperwork. Carrie Borgstrom from RCU did excellent work as well. These two women are great, and I appreciate what they do. If anyone needs help with their business they should give them a call, they will help you 100%!” – MCCD Loan Client, Hastings MN Dakota County Q2 Report 6.30.2023 5 Business Type: Restaurant Business Location & Owner Residence: Inver Grove Heights Referred by: Community Outreach MCCD Financing: $110,000 Partner Financing: $110,000 Owner Equity: $129,490 Overview: MCCD approved financing for this immigrant owned business expansion in Inver Grove Heights in July 2023. This full-service, family-owned Mexican restaurant has been a community staple in IGH since 2015 with a solid local following. The business embarked on an expansion to a larger location in 2021 but due to unforeseen costs and logistics, the project had been stalled for quite a while. Having exhausted their available funds, the owners were stuck paying rent at both locations with a partially completed renovation. The business connected with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and she worked tirelessly to find a path forward for this family business, providing in-depth technical assistance and sound professional resources to guide the clients through this period. MCCD brought in a non-profit lending partner and together the organizations collaborated on the final funding package. The business has three existing employees and when the expansion is complete, three new jobs will be created. Credit Builder Loans In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides $240 Credit Builder Loans (CBLs) to qualified applicants seeking to improve their personal credit. Credit Builder applicants complete financial training through MCCD’s partners and are then referred to MCCD for a CBL. MCCD generates and services the CBLs in-house. 2023 Credit Builder Loans YTD Resident City Loan Amount Rosemount $240 West Saint Paul $240 West Saint Paul $240 TOTAL $720 Business Grants Business Type: Driving School Business Location: Apple Valley Referred by: Google Search MicroGrant: $3,500 Owner Equity: ~$10,000 Grant Application Facilitated by MCCD Overview: This low-income, women business owner learned of the Open to Business program by searching online for resources. After working as a driving instructor for a few years and falling in love with the work, this entrepreneur recognized the opportunity to establish her own school. After pouring every spare dollar into the startup costs, the business owner had a gap of ~$3,000 which MCCD was able to fill through a MicroGrant. The grant covered the remaining costs for equipment, supplies, and technology. With the additional funding the business owner opened her doors in June with a fully equipped classroom space. As the head of a household with 6 children, this business owner is on the path to building a strong business and a successful future. Dakota County Q2 Report 6.30.2023 6 “Thank you to Natalie Mouilso and Open to Business for all the hard work and guidance as I embarked on the journey of starting my own business. Natalie's expertise and advice are invaluable as she provided me with practical solutions and suggestions that helped me navigate through the challenges of starting a business.” – Grant Recipient, Apple Valley Highlights, Networking, & Outreach Funding & Policy Updates • May 2023 – MN DEED’s Small Business Assistance Partnership Grant program sees significant funding increase and is codified for years to come. After years of leadership on the Small Business Assistance Partnership Grant program, MCCD was thrilled to see the program receive a one-time funding increase to $12.85 million (FY 24-25) & $5.45 million minimum funding ongoing. The previous base funding of the program was $2.85 million. This program is a competitive grant program at DEED that supports small business technical assistance. It has helped supplement technical assistance work for small businesses around Minnesota for years. Along with codifying the program this year, we added LGBTQ + as a targeted group and clarified that cooperatives and commercial land trusts are eligible businesses that can be helped with this program. • June 2023 – MCCD was formally approved as a partner lender for the State of Minnesota DEED Small Business Loan Participation Program (“SBLPP”). The American Rescue Plan Act (ARPA) reauthorized and expanded the State Small Business Credit Initiative (SSBCI) to provide $10 billion to support small businesses and improve access to capital in the wake of the pandemic. As part of the SSBCI Application, DEED proposed the creation of the SBLPP, which would provide small businesses with financial support through participation loans. Staffing • May 2023 -- MCCD’s CEO, Elena Gaarder, was honored at the Business Journal’s 2023 Women in Business Awards & Expo. Elena and the other honorees were selected based on their outstanding professional achievements, leadership qualities and community engagement. Programming, Partnerships, & Trainings • April 18 – In partnership with the UMN Law School, MCCD hosted the first Small Business Law Q&A webinar of 2023. As in past legal Q&As, legal experts provide transaction-based legal assistance to small businesses on a variety of subject matters including entity formation, owner distributions, and commercial lease review. These Q&As are a great opportunity for business owners and entrepreneurs to get free guidance on legal matters. Watch the recording here. • April 27 – MCCD staff completed a 4-part Racial Equity training. Through more than 16 hours of instruction and discussion, the MCCD team learned about core racial equity concepts, communicating to advance racial equity, and how to apply a racial equity lens to our community and economic development work. • June 14 – The Open to Business team is prioritizing teambuilding this year and our first team event was a Twins vs Brewers game together in June. A team retreat is slated for September where we will focus on strengthening our relationships as a team along with mission and values development. • June 29 – MCCD hosted experts from the Met Council who trained our staff on SAC Basics for Business and Property Owners. The training provided a baseline of knowledge for our staff to advise clients on the process of SAC determinations including submittals, contacts at the Met Council, and what programs may be available on the local level to help. Dakota County Q2 Report 6.30.2023 7 Advertising & Outreach • June 9 – Last year OTB rolled out Field Trip Friday where team members and community contacts support local small businesses with a walking tour to highlight MCCD clients and projects. On June 9 we visited five businesses in Hastings, MN, including Spiral Food Co-op and Geek Haven Coffee. • Banker and lender outreach occurred specifically with Drake Bank, Merchants Bank, Minnwest Bank, Old National Bank, Royal Credit Union, Think Bank, US Bank, and Vermillion Bank. • Written or in-person presentations were made and/or networking efforts were made including City of Lakeville & NEOO meeting on April 12, the Southeast Metro Development Summit on May 24, CDFI Women’s Network event on June 1, Dakota County CDA mid-year presentation on June 8, West Saint Paul Open House on June 8, Business Tour of Hastings on June 9, Rosemount Port Authority presentation on June 20. Regular/update meetings occurred with the Workforce Development Board’s Business Services/Economic Development Committee, the University of MN Law School, Dakota County CDA, the City of Farmington, and the City of Eagan, the City of Hastings, the City of West Saint Paul, the City of South Saint Paul, the City of Mendota Heights, and the City of Apply Valley Economic Development team as well as the Apple Valley Fire Inspector. • MCCD’s new website is live. Check out our refreshed look at https://mccdmn.org/. The www.opentobusinessmn.org site has been decommissioned and will redirect to our new site going forward. • MCCD now has an easy way to subscribe to our newsletter. Complete the online form to get community development updates on policy and advocacy, grant opportunities, small business resources, funding opportunities, field building, small business resources, business highlights, and more! • The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads will be created and updated periodically so keep checking back. The library was created to help streamline how we share ads with partners and to give partners direct access to choose ads that meet their needs. Access the Ad Library here. Client Highlight Deru Braiding & Hair Supply, Eagan, MN Established July 2023 “Natalie Mouilso at the Open to Business program has helped us through the difficult process of starting up my new business: Deru Braiding & Hair Supply LLC. Prior to contacting the Open to Business Program, I have been working at my sister’s salon for over 9 years. I envisioned opening my own hair braiding salon but not knowing how to make my wish a reality. When my husband Daniel and I decided to finally start my own hair braiding salon, we were confused about the steps we needed to make. We needed help, and we luckily found the Metropolitan Consortium of Community Developers. We were connected to Natalie, and she led us through the entire business start-up. My Husband and I were not aware of all the requirements that were essential, but Natalie provided us with many resources such as a step-by-step timeline, business proposal template, and many contacts to make the store up-to-code. She supported us in obtaining the business loan, answered all our questions and concerns (even when she was out of the office), and talked us through each step until everything was finalized. My ambitious dream was made possible because of Natalie’s guidance, patience, and sincerity about making Deru Braiding & Hair Supply LLC happen. We are extremely grateful for the Open to Business Program and know this program will support more new businesses in the future. If someone can IMAGINE their business, the Open to Business Program will EDUCATE, COUNSEL, and INSTRUCT you through the process. Thank you so much!” -- Debrework ‘Deru’ Bezabehe and Daniel Estifanos Dakota County Q2 Report 6.30.2023 8 Daniel and Deru at the Grand Opening celebration. Deru, family, and friends.