HomeMy WebLinkAboutIV.A.1 Dakota County OTB Narrative Report - Q4 2023
Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390
Q4 2023 ending 12.31.2023
Clients Served YTD
Client Inquiry 4
Existing - Challenged 19
Existing - Opportunity 45
Pre-start planning 57
Start-up 43
Total 168
Business Owner Demographics YTD
Low-Income Owned 63
BIPOC or Immigrant Owned 86
Woman Owned 82
Financing & Access to Capital YTD
Approved (YRLY Total) $ 604,855.00
Equity (YRLY Total) $ 751,362.00
Facilitated (YRLY Total) $3,166,022.00
Program Hours
TA Program HRS
1st QTR 382.00 159
2nd QTR 299.75 213
3rd QTR 293.25 223
4th QTR 290.25 179
Total 1,265.25 774
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 Q4 Report 12.31.2023
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Industry Segment YTD
Construction / Real Estate 5
Food 27
Health/Fitness 16
Manufacturing 2
Consulting 11
Retail 32
Service 39
Technology 3
Wholesale / Distribution 3
Other/TBD 13
Total 168
Referral Source YTD
Bank Referral
21
Entrepreneur 8
Friends and Family 20
Municipality 50
MCCD Partner/Staff 14
Other 48
Web 7
Total 168
City YTD Business Resident
Apple Valley 22 15
Burnsville 20 18
Eagan 22 23
Farmington 13 16
Hastings 15 11
Inver Grove Heights 10 10
Lakeville 19 26
Mendota Heights 1 1
Rosemount 12 13
South St. Paul 6 7
West St. Paul 9 7
Other Dakota Co. 0 2
Other/ No Data 19 19
Dakota County Q4 Report 12.31.2023
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Direct Financing & Access to Capital
Business Type: Thai Grocery Store – Updated Q3
Business Locations: Burnsville & South Saint Paul
Owner Residence: Woodbury
Referred by: Bank Partner & City of South Saint Paul
MCCD Financing: $125,000
Owner Equity: $196,391
Other Financing: $2,455,472
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 the development of a multitenant building which will include space for
two additional tenants. MCCD financing will be utilized for construction costs. Update: After this loan was
initially approved in Q1 2023 an adjustment to the total project costs increased the project size from
$1,920,000 to $2,455,472. The loan was reapproved by MCCD in August and closed in September 2023.
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 Q4 Report 12.31.2023
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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.
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. 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.
Dakota County Q4 Report 12.31.2023
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Business Type: Restaurant
Business Location: Apple Valley
Owner Residence: Rosemount
Referred by: Municipality
MCCD Financing: $67,935
Owner Equity: $290,000
Overview: This husband-and-wife team of seasoned entrepreneurs contacted OTB for startup financing to
complete leasehold improvements and provide working capital. After years of successfully operating a sushi
franchise, the business owners decided to start a new food business which could appeal to a wider variety of
customers. The new restaurant is in a prime retail and commercial area of Apple Valley and will serve fried fish,
seafood, and chicken, as well as sandwiches, fried fish tacos, and freshly hand cut fries. This immigrant owned
business opened January 11, 2024, and created two full time jobs for the owners and two part time jobs for
kitchen helpers.
Business Type: Hair Braiding Salon
Business Location: Apple Valley
Owner Residence: Lakeville
Referred by: Bank Partner
MCCD Financing: $10,000
Owner Equity: $5,500
Overview: This business owner was referred to OTB by Royal Credit Union, Apple Valley. The business was
poised for growth although the owner did not have the working capital on hand to bring in new products and
make important equipment upgrades. With a loan from MCCD the business will be able to book new services
and raise prices, increasing income for the owner and her family. As a single parent of four children, this hard-
working and dedicated business owner is now set up for success in 2024.
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 (Grant Application Facilitated by MCCD)
Owner Equity: ~$10,000
Dakota County Q4 Report 12.31.2023
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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.
Highlights, Networking, & Outreach
Funding & Policy Updates
• November 9 – Along with clients and partners, MCCD held our Annual Meeting to celebrate collective
community impact. Read the accompanying Annual Report which summarizes achievements in policy,
advocacy, field building, small business development, lending, and shared ownership.
• December 13 – MCCD was recognized as a recipient of DEED’s Small Business Assistance Partnership Grant
designed to support organizations dedicated to empowering BIPOC entrepreneurs and small business owners.
Programming, Partnerships, & Trainings
• October 10 – The Open to Business team participated in the first annual teambuilding retreat. The team
gathered to reflect on 2023 and look ahead to 2024.
• November 8 – In partnership with accounting firm Tax Actions of Minneapolis, MCCD hosted a bookkeeping and
accounting Q&A webinar. The event provided an overview of bookkeeping practices for small businesses as well
as a Q&A section.
• November 14 – MCCD, alongside Mni Sota Fund and Shared Capital Cooperative, collaborated with the MN
Small Business Administration District Office to organize a Capital Strategies Symposium to discuss constructing
a more inclusive finance system. The event featured remarks by Geri Sanchez Aglipay, Regional Administrator,
SBA, Neela Mollgaard, Executive Director, DEED Office of Small Business Innovation, and St. Paul Mayor Melvin
Carter.
• November 17 – In partnership with the UMN Law School, MCCD hosted a Small Business Law Q&A webinar
where 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.
• December 1 – MCCD rolled out a Holiday Shopping Guide which featured clients and businesses in our
community.
• January 19 – Join the Open to Business team as we host our first in person Small Business Planning Workshop of
2024 at the MCCD Office. The training is open to entrepreneurs throughout the region and will provide
attendees with the tools and resources needed to write a business plan.
Advertising & Outreach
• Banker and lender outreach occurred specifically with Merchants Bank, Minnwest Bank, Northeast Bank, Royal
Credit Union, Scale Bank, Sunrise Bank, Think Bank, and US Bank.
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• Written or in-person presentations were made and/or networking efforts were made including Minnesota
Minority Goods & Services Association on October 3, CMDC Business Financing on October 16, West Saint Paul
Workforce Development Center on October 20, St. Thomas Small Business Development Center on November
20, Dakota County Bi-Monthly City/County Meeting on December 14. Regular updates / 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 Burnsville, the City of Eagan, and the City of Farmington.
• The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. Access the
Ad Library here.
Client Highlight
Meet Mireya Sanchez, owner of El Rincon Mexicano of Inver Grove Heights. This full-service, family-owned Mexican
restaurant has been a community staple in IGH since 2015 with a solid local following. The business serves healthy,
freshly prepared, and unprocessed food and even has a vegetarian menu! Mireya started the business when she felt
called to sell her enchiladas to the community. As the business grew, Mireya looked to expand to accommodate
additional dining spaces for both customers as well as her employees during their lunch breaks. The business embarked
on an expansion to a larger location in 2021 but due to unforeseen costs and logistics, the project stalled. Having
exhausted available funds, she was 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 Vicky worked
tirelessly to find a path forward providing in-depth technical assistance and sound professional resources. MCCD
brought in a non-profit lending partner and together the organizations collaborated on the final funding package. MCCD
approved financing in July 2023. The business has three existing employees and when the expansion is complete, three
new jobs will be created.
“MCCD has helped where I couldn’t and wouldn’t. It’s important that other Hispanic and other Latin people
know about MCCD’s existence.” - Mireya, Owner of El Rincon
Mireya Sanchez, Owner of El Rincon Mexicano, Inver Grove Heights