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Home My WebLink AboutV.C - Open To Business 2nd Quarter Report Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 1/31/2025 – 6/30/2025 Clients Served YTD Client Inquiry 1 Existing - Challenged 19 Existing - Opportunity 34 Pre-start planning 31 Start-up 25 Total 110 Business Owner Demographics YTD # of Clients Low-Income Owned 57 BIPOC or Immigrant Owned 67 Woman Owned 62 Financing & Access to Capital YTD Loans & Grants Approved (YRLY Total) $337,414.00 Equity (YRLY Total) $108,079.00 Facilitated (YRLY Total) $ 98,967.00 Total Investment $544,460.00 Program Hours TA Program HRS 1st QTR 367 237 2nd QTR 462 185 Total 829 422 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 5 Food 19 Health/Fitness 11 Manufacturing 3 Consulting 6 Retail 28 Service 18 Wholesale / Distribution 2 Other 18 Total 110 Referral Source YTD Bank Referral 10 Entrepreneur 4 Friends and Family 17 Municipality 13 MCCD Partner/staff 16 Other 21 Web 29 Total 110 City YTD Business Resident Apple Valley 13 10 Burnsville 17 12 Eagan 11 11 Farmington 9 10 Hastings 3 4 Inver Grove Heights 6 8 Lakeville 11 16 Mendota Heights 2 2 Rosemount 8 9 South St. Paul 8 7 West St. Paul 5 4 Other Dakota Co. 2 3 Other/ No Data 6 14 “I just wanted to let you know that it was great speaking with you today - I learned a lot in our conversation!” – Eagan Business Owner Open to Business Report 3 Direct Financing & Access to Capital Business Type: Bubble Tea & Café Business City: Eagan Residence City: Savage & Farmington Referred by: Website MCCD Financing: $175,000* Owner Equity: $65,443 Overview: This startup bubble tea shop was seeking funds for start up expenses, tenant improvements, equipment, inventory, and working capital. The two business partners put their heads together on opening this business and were approved for a $175,000 direct loan from MCCD in January 2025, contingent on an 80% loan guaranty from MN DEED through the DEED Small Business Credit Initiative. *As the DEED guaranty application was in progress the business owners received news of some unexpected project costs from their contractor and decided to withdraw their application and tabled the business plan for now. Business Type: Natural Beauty & Wellness Products Business City: Burnsville Residence City: Burnsville Referred by: TikTok Influencer Microgrant Facilitated: $2,500 Owner Equity: $2,500 Overview: This early-stage home-based business was established in 2023 and sells handmade beauty and wellness products to friends and family. After a referral from a TikTok influencer who provides entrepreneurship advice, the Burnsville resident reached out to MCCD seeking funding to expand her business and launch her website. The business owner is a low-income single mother and qualified for a microgrant which MCCD facilitated, and the client received in January. The funding allowed the business owner to increase operational efficiency, buy inventory and supplies, and launch a new product line. The entrepreneur is currently working on rebuilding her credit so that she can apply for an MCCD loan for the remaining funding to build and launch her website. Business Type: Food Truck and Cookie Dough Wholesaler Business City: Eagan (Home Based & mobile throughout Twin Cities region) Residence City: Eagan Referred by: LEDC MCCD Financing: $50,000 Owner Equity: $7,000 Other Financing: $50,000 Overview: MCCD collaborated with nonprofit partner on this $107,000 project to support a growing BIPOC and woman owned cookie dough business. The business was established in 2021 as a response to the lack of organic cookie dough available in the market. Their dough offers all organic, non-GMO, fair trade ingredients with no preservatives and comes in three flavors. There are two branches to their business: the business-to- business, where they sell wholesale through a distributor to co-ops and grocery stores and a direct to customer retail - selling both the dough and fresh-baked cookies at farmers markets and festivals. They had been selling Open to Business Report 4 via a pop-up tent and recently came across the opportunity to purchase a food trailer to streamline their operations. The borrowers needed funding food trailer improvements, equipment, inventory, and working capital to help them take advantage of the upcoming selling season. Business Type: Fashion Optical Boutique Business City: Savage Residence City: Burnsville Referred by: Municipality MCCD Financing: $82,173.70 Owner Equity: $30,636 Other Financing/ funding: $35,217.30 & $11,250 Overview: This entrepreneur is a licensed optician operating in the optical industry for more than 20 years. He has always dreamed of opening his own optical store near his home in Burnsville to start to build wealth for himself. He found an ideal storefront in Savage and reached out to MCCD for assistance with the project funding for inventory, equipment, startup expenses, and ~ 3 months of working capital for operations. Total project costs are $159,227 including the equity investment of $30,636 and a $11,250 tenant improvement budget from the landlord. The loan request was approved by MCCD’s loan committee on April 24th contingent on 30% participation from MN DEED through the Small Business Credit Initiative, application is currently pending, and approval is expected in early May. Business Type: RV Tank Cleaning Business City: Rosemount Residence City: Rosemount Referred by: Community Partner MCCD Financing: $30,000 Owner Equity: $2,500 Overview: This husband-and-wife team have a combined professional background in customer service, custodial cleaning, and mechanicals. They also love camping and the outdoors and have been avid RV'ers for years. As they grow older and become empty nesters, they saw an opportunity to make a side business out of their passion and have something that they could continue into retirement. Through their time spent at campgrounds in the Midwest they became aware of the opportunity to become a licensed dealer for an RV Tank cleaning franchise. The business owners see this as a promising opportunity to generate additional income now and into retirement while doing something that they truly love. “Thank you so much for your time & all your guidance!” - Lakeville Business Owner Open to Business Report 5 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. Credit Builder Loans YTD Resident City Loan Amount West Saint Paul $240 TOTAL $240 Highlights, Networking, & Outreach Programming, Partnerships, & Trainings • April 8 – In partnership with UMN Law School MCCD hosted a virtual Q&A session on small business law. We host this free virtual event twice annually and it is designed for business owners at any stage. Law student panelists work with their supervising attorney to answer questions and provide legal resources and guidance to help navigate law questions and concerns. 25 attendees joined and the event was a huge success. • June 30 – Earlier this year, MCCD rolled out our hybrid lending information sessions every other Tuesday at noon via zoom and in person at the MCCD office. This year to date our team has hosted 11 sessions with 30 attendees. The sessions are designed to give potential loan applicants a solid understanding of our loan application process. • July 30 – Join us for our upcoming webinar: Understanding Immigration Policy and Impacts on Small Businesses hosted by MCCD with panelists including Kwame Osafo-Addo, Attorney and Owner at TruLegalBiz; Brenda Pfahnl, Attorney and Owner at Colibri Legal PLLC; and Lisa Zamora and Diana Salas from the MN Department of Labor and Industry. The discussion will include current updates and practical information for businesses regarding Immigration Policy. Register here. Advertising & Outreach • Submit content to MCCD’s Business Resource Newsletter! MCCD community partners are invited to submit their own events, trainings, and more to be included in MCCD’s Business Resource Newsletter. Information should be relevant/tailored to local small business owners and entrepreneurs. Email your content to Mara Brooks, MCCD's Communications & Data Coordinator, at mbrooks@mccdmn.org • April 2 – MCCD launched its Lending E blast, a semiannual update on our loan program, loan products, and lending team. The e blast went out to all lenders and financing partners in our network. • April 17 – MCCD participated in a Small Business Resource Fair hosted by the Neighborhood Development Center, Metro State University and Stearns Bank. The fair provided expert advice, networking opportunities, and valuable resources to help small businesses grow and thrive. • May 9 – MCCD staff joined over 300 attendees and 65 vendors at the St. Paul Small Business Summit & Expo, presented by Wells Fargo during National Small Business Week. The event provided a platform for networking, learning, and celebrating local entrepreneurs. MCCD client and consultant Britany Howard of Victory Business Open to Business Report 6 Solutions was honored as the 2025 Minnesota Young Entrepreneur of the Year by the Small Business Administration. • May 22 – MCCD tabled with the Dakota County CDA at the Southeast Metro Development Summit which discussed market insights, updates, and new approaches in residential, commercial, and experiential development. Many connections were made with local businesses and commercial lenders. • June 12 – MCCD participated in the Black Business Network's Business Fair and Silent Auction located at Allianz Field which celebrated black-owned businesses throughout the region. • June 16 – MCCD’s Howard Bailey spoke as a panelist at the University of St. Thomas’s Access to Capital event highlighting financing opportunities for small businesses. Other panelists included Northeast Bank and US Bank. • The advertisement library is up to date with the most recent ads and flyers for OTB. Access the library here. • In the last quarter, banker and lender outreach occurred specifically with Frandsen Bank & Trust, Lakeview Bank, Prime Security Bank, Royal Credit Union, Stearns Bank, US Bank, and Village Bank. • In addition to lending outreach, written or in-person presentations were made and/or networking efforts were made including with UMN Law School, Dakota County Library Adult Services, MN DEED, and MN Dept. of Labor & Industry. Quarterly Highlight MCCD Advisors Tyler Hilsebeck and Natalie Mouilso visit Client Southeast Metro Development Summit, May 22,2025 Watson Fong’s (center) newly opened market in South Saint Paul