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HomeMy WebLinkAboutV.B. Dakota Report 1st QTR 2022 Clients Served YTD Client Inquiry 2 Existing - Challenged 7 Existing -Opportunity 28 Pre-start planning 20 Start-up 19 Total 76 Business Owner Demographics YTD Low-Income Owned 21 BIPOC or Immigrant Owned 32 Woman Owned 40 Financing & Access to Capital YTD Approved (YRLY Total) $ 50,000.00 Equity (YRLY Total) $135,000.00 Facilitated (YRLY Total) $455,000.00 Program Hours TA Program HRS 1st QTR 281.50 227 Total 281.50 227 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 Quarterly Report – 3.31.2022 Open to Business 3137 Chicago Ave Minneapolis, MN 55407 612-789-7337 Industry Segment YTD Construction / Real Estate 4 Food 11 Health/Fitness 13 Manufacturing 4 Consulting 6 Retail 19 Service 13 Technology 3 Wholesale / Distribution 1 Other 2 Total 76 Referral Source YTD Bank Referral 8 Entrepreneur 3 Friends and Family 2 Municipality 37 MCCD Partner 5 Other 4 Web 17 Total 76 City YTD Business Resident Apple Valley 6 7 Burnsville 11 7 Eagan 14 9 Farmington 10 6 Hastings 6 4 Inver Grove Heights 3 2 Lakeville 8 9 Rosemount 5 4 Mendota Heights 2 2 South St. Paul 6 6 West St. Paul 3 2 Other Dakota Co. 0 0 Other/ No Data 4 17 Dakota County Quarterly Report 2 Direct Financing & Access to Capital Loan Closed Q1 - 2022: Business Type: Landscaping Business Location: Eagan Referred by: Partner Organization Bank Financing: $25,000.00 Owner Equity: TBD MCCD Financing: TBD Overview: MCCD assisted this new business owner with the purchase of an existing landscaping business in Eagan. Financing was needed for the purchase of the business and for two vehicles necessary for business operations. MCCD facilitated a loan through an Eagan banking partner who was able to assist the client with most of the capital needed for the project. MCCD is currently underwriting the remainder of the project which we expect to move forward in Q2. The business owner is a BIPOC woman and the project will retain 5 jobs for the community. Loan Approved Q2 – 2022: Business Type: Cooperative grocery store Location: Hastings Referred by: City of Hastings Owner Equity: $135,000 MCCD Financing: $50,000 Other Financing: $430,000 Overview: This longstanding community grocery co-op offers natural, mostly organic, affordable, healthy, local food and has deep relationships with local farmers and small businesses in the community. Financing was obtained for a move within the current business location to an adjacent space that is almost double the square footage. The expansion will allow the business to significantly increase their selection of products, streamline operations, gain market share, increase profitability, retain 10 existing jobs, and create 8-10 new jobs for the community. MCCD began working with the client in December 2021. The project was underwritten over the course of the past four months in partnership with the City of Hastings and a local Hastings bank. Q4 Highlights, Networking, & Outreach Funding & Policy Updates • In February 2022 MCCD received a $250,000 grant from the Otto Bremer Trust, which is a new funding source for MCCD. These grant funds will be utilized to provide forgivable loans and grants to qualifying businesses within our CDFI target markets [BIPOC business owners, low wealth individuals, and businesses located in areas of under investment]. One of MCCD’s strategic objectives is to lower the cost of the capital we lend to our clients and we intend to continue to focus on securing grants for similar purposes in the future. • MCCD is pleased to announce that our 2022 allotment from MicroGrants is $25,000. MCCD has been an approved partner of Microgrants for many years and we apply for these grants on behalf of our existing qualifying clients. A microgrant is generally less than $5,000 and can be used for a variety of business expenses including inventory, technology, and equipment. • Last June MCCD received a $1.826M grant from the US Dept. of the Treasury’s CDFI Rapid Response Program. MCCD quickly put these funds to use last year to retroactively lower interest rates for 75 loan clients in our loan portfolio. Additionally, we capped our interest rate for new startup loans at 7%. In 2022, we’re pleased to report Dakota County Quarterly Report 3 that these dollars will be further utilized to provide loans to qualifying businesses in our CDFI target markets at rates as low as 3% until this funding source is fully utilized. These changes to our loan policies reflect MCCD’s commitment to provide affordable and flexible capital to the communities we serve. Staffing Updates • MCCD welcomes our newest member of the OTB team, Luis Mendoza, as a floating Business Advisor and Loan Underwriter. Luis has a community lending background with a passion to help the BIPOC communities generate wealth by guiding and coaching individuals to fulfill their business ownership dreams. He is originally from Cozumel, an island located in the Mexican Caribbean. Previously, he worked as a Community Loan Officer and Underwriter and has also served in the nonprofit sector as a Homeownership Advisor, Financial Coach, and Business Advisor. Luis holds a bachelor’s degree in Organizational Management from the Universidad de Guadalajara and a Financial Coaching Foundations Certificate from the University of Wisconsin-Madison. Luis has a strong passion for helping individuals and small businesses to succeed. He is a native Spanish speaker and will serve clients throughout OTB territories. • Humphrey Fellow and Fulbright Exchange Scholar from Yemen, Eman Alaghbari, has extended her time with MCCD and will continue through Q2. Eman is working with MCCD leadership and the Open to Business team to learn about community and economic development strategies, tools, and resources. Eman will bring the knowledge she gains in Minnesota back to Yemen to provide new strategies for Yemeni entrepreneurs. Programming, Partnerships, & Trainings • January 28th: MCCD hosted a virtual community development focused policy and advocacy training for community partners. MCCD staff walked through how to navigate local, regional, and state government and guest speaker lawmakers were present to provide their insights also. • February 25th: In partnership with the MN Dept. of Labor, MCCD is hosted a live virtual Q&A session on labor policies, regulations, and resources for small business owners. The event was open to businesses in any stage and 19 businesses were in attendance. • March 7th: Seven MCCD staff members [including OTB team members Natalie, Luis, Vicky, Yoni, and Noah] began the National Development Council’s Economic Development Finance 101 class which will run through September. Graduates will build on their existing knowledge base and gain a further understanding of both the basic tools and newest techniques used by successful economic development finance practitioners to assist small businesses and create jobs. • March 31st: MCCD hosted the 3rd virtual Q&A with the University of MN Law School. This free virtual event was open to businesses at any stage. The event was at capacity with 16 businesses in attendance. The Q&A session was recorded and is available for viewing here. Additional legal Q&As will be held later this year. • May 4th: In partnership with Amplio, LEDC, WomenVenture, and the City of Woodbury, MCCD is co-hosting an in- person forum on nontraditional financing options including SBA programs, the MCCD loan program, and other regional CDFI lending options. The forum is free and open to lenders and partners in the surrounding region. More information & registration details available here. Dakota County Quarterly Report 4 Advertising & Outreach • Throughout Q4 of 2021 and Q1 of 2022, Open to Business worked closely with the City of Burnsville to produce a new video for the city to promote the OTB program. The video highlights OTB’s outcomes within the city and tells the story of three local business who participated in the program. The video can be viewed on the web here. • MCCD rolled out the new Open to Business advertisement library which we’ll use going forward in lieu of sending new ads via email each quarter. The ads in the library will always be up to date and new ads will be created and updated periodically so keep checking back. The library was created to help streamline how we share this information with partners. Access the Ad Library here and remember to check back periodically for updated ads. • MCCD recently created a new loan products brochure for lenders. It’s a concise, easy to understand summary of our loan products, mission, and target market. This new marketing material will help us communicate lending options when we engage in outreach to lending partners & stakeholders. The digital and print version is available in the ad library. • In Q1, banker and lender meetings/outreach occurred specifically with Bremer Bank, Choice Bank, HomeTown Bank, Minnwest Bank, Prime Security Bank, Royal Credit Union, Spire Credit Union, Sunrise Bank, Think Bank, and Vermillion State Bank. • In addition to banker outreach, in Q1 and early Q2 presentations were made for the City of Burnsville’s EDA on Jan 12th, the City of Inver Grove Heights on Feb 7th, the City of West Saint Paul’s EDA Work Session on Feb 28th, Dakota County Regional Chamber & City of Eagan Coffee Break on April 14th, and Heartland Networking Group on April 19th. Regular meetings occurred with the Workforce Development Board’s Business Services/Economic Development Committee. Partnership/update meetings occurred with the University of MN Law School, the Dakota County Regional Chamber of Commerce, the City of Farmington, the City of Burnsville, the City of West Saint Paul, the City of Hastings, and the Minnesota African Women’s Coalition. Selected Program Feedback “Thank you, as always, for your leadership in putting together this event. We enjoyed ourselves and I know that this is a meaningful opportunity for the student directors to synthesize and deliver core info that we've discussed throughout their semesters with the program.” – Director, University of Minnesota Business Law Clinic “We have found all of your guidance most helpful.” – Rosemount Business Owner “Thank you for all of the introductions. My goodness, I really appreciate you for all that you do. We don’t take this lightly. This is the time for us to home in on the resources that Dakota County has for the community that we serve.” – Partner Organization “Truly, you are the most on-top-of-things in a business sense. Our Farmington group is so blessed to have you involved in our community!” – Farmington Business Owner “Thank you so much for all of this information! It is so helpful, and I appreciate it so much. It was great meeting you and I’m excited to keep in touch in the future! I’ll check back as new questions come up. It really is so nice having you here to help me with all of this!” – Eagan Business Owner Dakota County Quarterly Report 5 MCCD Client Profile Meet Lakeville business, Brooklyn and Grey Clothing and the Graceful Lamb. Both businesses are online based retail children’s clothing and accessories that are of the highest quality, handmade in the USA, and expertly sewn. The business owner has been an Open To Business client since 2021 and received assistance with a business expansion to include the new clothing line, the Graceful Lamb, as well as advising on marketing, sales, engagement with new and existing customers, website development, branding, bookkeeping, and management strategies. Visit https://www.brooklynnandgrey.com/ and https://thegracefullamb.com/ for unique everyday styles and special occasion items for kids. “As a small business owner, it’s great to have a place you feel can add value to your business and help with ideas.” - Tiffany, Business Owner