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HomeMy WebLinkAboutV.D - Open to Business Q2 Report Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 Second Quarter – 6/30/2024 Clients Served YTD Client Inquiry 02 Existing - Challenged 11 Existing -Opportunity 34 Pre-start planning 38 Start-up 25 Total 110 Business Owner Demographics YTD # of Clients Low-Income Owned 54 (49%) BIPOC or Immigrant Owned 61 (55%) Woman Owned 53 (48%) Financing & Access to Capital YTD Loans & Grants Approved (YRLY Total) $ 176,460.00 Equity (YRLY Total) $ 715,500.00 Facilitated/Other (YRLY Total) $ 90,000.00 Total Investment $ 981,960.00 Program Hours TA Program HRS 1st QTR 361 251 2nd QTR 490 238 Total 853 489 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 Open to Business Report 2 Industry Segment YTD Construction / Real Estate 03 Food 17 Health/Fitness 12 Manufacturing 03 Consulting 09 Retail 18 Service 24 Technology 01 Other/Undecided 13 Total 110 Referral Source YTD Bank Referral 18 Entrepreneur 06 Friends and Family 09 Municipality 21 MCCD Partner 13 Other 15 Web 28 Total 110 City YTD Business Resident Apple Valley 14 10 Burnsville 20 11 Eagan 17 13 Farmington 03 07 Hastings 07 03 Inver Grove Heights 06 08 Lakeville 12 15 Mendota Heights 01 01 Rosemount 03 03 South St. Paul 07 05 West St. Paul 08 03 Other Dakota Co. 00 00 Other/ No Data 12 32 Open to Business Report 3 Direct Financing & Access to Capital Business Type: fast casual pizza franchise Business City: Apple Valley Residence City: Lakeville Referred by: Bank Partner MCCD Financing: $42,000 Owner Equity: $460,000 Other Financing: $18,000 MN DEED Small Business Loan Participation Program Overview: MCCD began working with this recent startup in Fall, 2023. The business sought working capital to implement a marketing plan to build local awareness and grow sales. Through MCCD, the business spent four months working closely with a bookkeeping/accounting advisor to gain skills and expertise in financial management of the business. They wrote a marketing plan and met with independent consultants to get additional insight into their business operations. The business was approved for the MCCD loan in early April with 30% participation from MN DEED SBLPP. The business is owned by four immigrants and is expected to employ a total of 7 after the market plan is implemented. Business Type: coffee & empanada trailer Business City: Mobile business, primarily in Rosemount, Lakeville, and Burnsville Residence City: Apple Valley Referred by: City of Rosemount MCCD Financing: $33,500 Owner Equity: $5,000 Overview: Open to Business began working with this client in March 2023 after he was referred by the City of Rosemount. This entrepreneur had a strong culinary background with dreams of opening a restaurant or coffee shop. He decided to start with a mobile food cart to prove out his business concept and generate a local following. The business launched later in 2023 serving coffee, espresso, and handmade empanadas. By early 2024 it was clear that there was strong demand, and the business was ready to take it to the next level. The business was approved for an MCCD loan to finance a fully customized food trailer which will add capacity, streamline operations, and increase efficiency. You can find this food trailer at summer farmers markets in Rosemount, Lakeville, and Burnsville and other community events including the Rosemount High School Spring and Fall Craft Fair, the Apple Valley Home and Garden Expo, and the Rosemount Community Expo. Business Type: Mexican food trailer Business City: Mobile business, primarily in West Saint Paul Residence City: West Saint Paul Referred by: Bank Partner, Blaze Credit Union MCCD Financing: $50,000 Owner Equity: $26,500 Overview: This startup food trailer business is named after the client’s mother and will serve authentic Mexican street tacos, burritos, gorditas, birria quesadillas, and salsas all based on family recipes as well as vegetarian and vegan friendly options. The entrepreneur has a strong background in food service and has always dreamed of having his own restaurant. He also believes in giving back to the community and sees his food trailer as an excellent way to support local sporting events and sports boosters programs. Look for the trailer at farmers markets, sports events, local schools, breweries, and parties in West Saint Paul. Open to Business Report 4 Business Type: bubble tea franchise Business City: Apple Valley Residence City: Savage Referred by: Bank Partner, Royal Credit Union MCCD Financing: $50,000 Owner Equity: $224,086 Other Financing / Funding: $72,000 Overview: This business owner is bringing a nationally recognized bubble tea franchise to Apply Valley. With decades of retail experience, the entrepreneur and her husband are well prepared to open their own bubble tea store. They approached MCCD through a banker referral in February and we worked together through the initial planning process. The loan request for working capital was approved in July. This BIPOC & immigrant owned business will create jobs for both owners as well as 3 other jobs for the community. The grand opening is planned for mid-August. 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. 2024 Credit Builder Loans YTD Resident City Loan Amount Inver Grove Heights $240 Burnsville $240 Burnsville $240 Eagan $240 TOTAL $960 Highlights, Networking, & Outreach Staffing Updates • MCCD welcomes Luis Rodriguez Dominguez, MSA, as the newest member of the Business Advisor team. Luis comes to MCCD with 20 years of experience in finance and small business support including roles in accounting, bookkeeping, and business development. Luis is committed to empowering small businesses and helping them navigate the complexities of starting and growing their businesses. • MCCD is hiring! See details about our two open positions: the Shared Ownership Advisor role and the Senior Loan Program Manager role. Programming, Partnerships, & Trainings • April 12 – 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 selection, franchising, formation, and commercial lease review. • April 19 – MCCD hosted our second business planning workshop of the year, Blueprinting Success: Financial Foundations for Startup Businesses. This workshop is designed to equip early-stage entrepreneurs and startups with essential financial skills and knowledge to build a solid foundation for success. More details here. Open to Business Report 5 • April 30 and May 22 – In partnership with Amplio, the African Development Center, and MEDA, MCCD presented at two non-traditional financing workshops in the Twin Cities on April 30th and May 22nd. These free workshops were designed to increase awareness around non-traditional financing resources that can be used to support small business growth either alone or in conjunction with conventional financing. • May 2 – MCCD co-hosted the 2nd annual Minnesota CDFI Coalition Day at the Capitol. Community Development Financial Institutions (CDFIs) in Minnesota have long been champions of filling financial and opportunity gaps deemed too risky by the private sector. With a mission-driven approach, CDFIs offer crucial support to small businesses and homeowners, particularly those within marginalized communities including Black, Indigenous, People of Color (BIPOC), immigrants, women, people with disabilities, and rural residents. MCCD became a CDFI in 2009 and we recertify with the US Dept. of the Treasury on an annual basis. • June 26 – MCCD hosted a Meet & Greet for our loan committee members and staff. MCCD loan committee is a group of volunteers who review loan requests of more than $50,000. We recently added four new members who bring diverse expertise, will ensure community representation, and help us to maintain transparency and accountability in our lending process. We are grateful for the dedication of our new and existing members. • August 9 – Join MCCD for the 3rd workshop in our business planning workshop series: Access to Capital for Small Businesses. MCCD is partnering with Royal Credit Union for this session where we’ll discuss the lending landscape, government resources, and how to attract a lender. More details and RSVP here. Advertising & Outreach • In the last quarter, banker and lender outreach occurred specifically with Castle Rock Bank, CorTrust Bank, First Farmers & Merchants Bank, Merchants Bank, Lakeview Bank, Minnwest Bank, Old National Bank, Royal Credit Union, Think Bank, US Bank, and Wings. • In addition to lending outreach, written or in-person presentations were made and/or networking efforts were made including Apple Valley State of the City on May 8, Dakota County Regional Chamber Coffee Connection on May 9, 360 Communities Navigator Program on June 6, Minnesota Economic Development Foundation’s LINK presentation on June 11, Farmington’s Business Resource Fair on July 16, as well as regular check ins with City of Farmington and Dakota County CDA. • 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. Quarterly Highlight Carmela’s Food Trailer, West Saint Paul Open to Business Report 6 “I am a first-time business owner. The process of getting established was a lot harder than I expected. Between figuring out licensing, permits, registering with the state and government, and startup funds, I was overwhelmed. Fortunately, I came across Natalie and the MCCD. They put resources at my fingertips and helped me secure a small business loan which made my journey much easier. I would recommend them to anyone trying to start their own business. The amount of resources they have available free of cost is unbelievable. They helped provide connections with tax and accounting professionals and other start-up resources. Natalie was amazing! She walked me through so many different things. Her wealth of knowledge and guidance were invaluable in helping me get my business started. Thank you so much, Natalie!” – Owner of Carmela’s Food Trailer, West Saint Paul