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Home My WebLink AboutV.A - OTB 4th Quarter Report Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 Fourth Quarter – 12/31/2024 Clients Served YTD Client Inquiry 01 Existing - Challenged 23 Existing -Opportunity 57 Pre-start planning 56 Start-up 28 Total 165 Business Owner Demographics YTD # of Clients Low-Income Owned 78 (47%) BIPOC or Immigrant Owned 89 (52%) Woman Owned 81 (49%) Financing & Access to Capital YTD Loans & Grants Approved (YRLY Total) $ 223,790.00 Equity (YRLY Total) $ 721,260.00 Facilitated/Other (YRLY Total) $ 97,000.00 Total Investment $1,042,050.00 Program Hours TA Program HRS 1st QTR 370.75 251 2nd QTR 499.75 238 3rd QTR 301.25 178 4th QTR 332.25 223 Total 1,504.00 890 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 04 Food 28 Health/Fitness 16 Manufacturing 04 Consulting 13 Retail 26 Service 38 Technology 02 Other/Undecided 34 Total 165 Referral Source YTD Bank Referral 23 Entrepreneur 11 Friends and Family 19 Municipality 30 MCCD Partner 18 Other 19 Web 51 Total 165 City YTD Business Resident Apple Valley 24 19 Burnsville 29 14 Eagan 23 17 Farmington 07 11 Hastings 07 04 Inver Grove Heights 08 10 Lakeville 20 25 Mendota Heights 01 01 Rosemount 07 09 South St. Paul 10 06 West St. Paul 09 05 Other Dakota Co. 02 04 Other/ No Data 18 40 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. “Natalie is the best loan officer ever; she has been so kind and helpful. This loan has helped a lot with our cashflow and inventory purchase, and I would definitely refer other business owners to MCCD!” – MCCD Loan Client, Apple Valley Business Type: online kids retailer Business City: West Saint Paul Residence City: Inver Grove Heights Referred by: MCCD Loan Client MCCD Financing: $25,630 Owner Equity: $3,300 Other Financing / Funding: $4,000 Overview: MCCD approved a $25,000 loan to a growing WSP business. This business is an online retail store that’s been in business for about 3 years. The business came to MCCD seeking funding to establish an office location for business operations. The business does not plan to have a storefront, yet, but the new location will allow the business to grow and maximize the online store’s capabilities and sales. The loan will retain a full-time job for the owner and create a new part-time job. The business is Hispanic and low income owned. “I am very grateful for all the support and guidance I received from MCCD. I would recommend to anyone looking to start or grow their business.” – MCCD Loan Client, West Saint Paul Business Type: Salon Suite Business City: Eagan Residence City: Farmington Referred by: Bank Partner, Minnwest Bank MCCD Financing: $20,000 Owner Equity: $1,619 Overview: MCCD approved a $20,000 loan to this industry veteran. After 10 years working in a salon as an employee, this business owner decided to break out on her own and establish her own brand and business in a salon suite building in Eagan. The business owner has the knowledge, expertise, and clientele to set herself up for success and MCCD provided the working capital for her equipment, inventory, and supplies for the space. “Yes, I would recommend MCCD to another business owner! This is a great option for a small business loan and to keep the interest rate low!” – MCCD Loan Client, Eagan Open to Business Report 5 Business Type: Consulting & Marketing Business City: South Saint Paul Residence City: South Saint Paul Grant Facilitated: $3,000 Owner Equity: $500 Overview: This entrepreneur has been working with OTB since August of 2023, carefully planning her consulting business which specializes in marketing & branding. The entrepreneur is a low-income single parent and in the face of these challenges, she continues to build a strong small business plan with support from MCCD and our partners over the past 1.5 years. In December 2024, the entrepreneur completed the St. Thomas SBDC’s Community Entrepreneurship program and secured the funding needed to move her business forward, a $3,000 grant for equipment & supplies. The entrepreneur has also been working with Vocational Rehab Services and expects to receive a second grant, for $4,000, in 2025 through that program. Credit Builder Loans In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides 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 CBLs in-house. 2024 Credit Builder Loans YTD Resident City Loan Amount Inver Grove Heights $240 Burnsville $240 Burnsville $240 Eagan $240 Lakeville $240 South Saint Paul $500 Eagan $240 Lakeville $240 Lakeville $240 Lakeville $240 TOTAL $2,660 Highlights, Networking, & Outreach Staffing Updates • MCCD welcomes Howard Bailey as our new Senior Loan Officer. Howard brings a wealth of experience in underwriting for community mortgage programs, including FHA, USDA, and VA loans. We are thrilled to welcome him to the team. Open to Business Report 6 Programming, Partnerships, & Trainings • November 1 – MCCD receives a renewal of our contract agreement to be a lending partner for MN DEED’s Emerging Entrepreneur Loan Program (EELP) through August 2026. The EELP has been in existence for many years and MCCD has long utilized these loan funds to provide capital for businesses that are owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities. Our recent allocation is $150,000 in nonrecourse funds. Loans made through EELP have the added benefits of zero closing costs paid by the borrower and up to 10% forgiveness of the loan’s principal balance after two years of timely payments. • November 7 – MCCD rolls out a new lending mentorship program for business advisors and loan officers. Each team member is paired with a mentor to guide them through the loan underwriting process in a manner that aligns with their preferred learning style and specific needs. • November 14 – MCCD celebrated its 35th birthday with breakfast, networking, and music at the Historic Coliseum Building. Our program of guest speakers included community partners from MN DEED, SBA, MN Housing, Riverton Community Housing, Family Housing Fund, Shake LLC, and Redesign, Inc. Thank you to our speakers, attendees, and to our sponsors for supporting our mission to advance racial and economic justice. • November 21 – MCCD sponsored a virtual and in-person informational session: Small Businesses & The Corporate Transparency Act: Last Chance to Comply presented by local attorneys from Stinson LLP and Minnesota Law students. • December – MCCD published our 2023-2024 Annual Report summarizing programming and milestones from the past year as well as what to expect in 2025. • February 18 – In 2025, MCCD will host hybrid lending info sessions every other week via zoom and in person at the MCCD office. The sessions are designed to give potential loan applicants a solid understanding of our loan application process. Advertising & Outreach • In the last quarter, banker and lender outreach occurred specifically with Drake Bank, Choice Bank, Coulee Bank, Lakeview Bank, Merchants Bank, Minnwest Bank, Royal Credit Union, Think Bank, US Bank, and Wings Credit Union. • In addition to lending outreach, written or in-person presentations were made and/or networking efforts were made including with the City of South Saint Paul meeting on Nov 12, the UMN Law School ongoing partnership discussions, and a presentation to Dakota County CDA & Cities on Dec 19 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. Open to Business Report 7 Quarterly Highlight On November 14th, MCCD celebrated its 35th birthday with breakfast, networking, and music at the Historic Coliseum Building. Our program of guest speakers included community partners from MN DEED, SBA, MN Housing, Riverton Community Housing, Family Housing Fund, Shake LLC, and Redesign, Inc. “Moving into 2025, we’ve sharpened our focus and re-dedicated ourselves to leveraging and stewarding resources in ways that build on the inherent assets and leadership in communities that have been impacted by generations of exclusion and extraction. We’re reimagining how we can better support the community development sector across the state to deepen practitioner skills, expand its ability to engage in public policy and elevate BIPOC leadership.” – Elena Gaarder, MCCD Chief Executive Officer & Gunnar Carlson, Chair, Board of Directors