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OTB Dakota County Report 2nd QTR 2022 Clients Served YTD Client Inquiry 6 Existing - Challenged 11 Existing -Opportunity 45 Pre-start planning 31 Start-up 35 Total 128 Business Owner Demographics YTD Low-Income Owned 41 BIPOC or Immigrant Owned 63 Woman Owned 64 Financing & Access to Capital YTD Approved (YRLY Total) $ 200,000.00 Equity (YRLY Total) $ 342,000.00 Facilitated (YRLY Total) $3,155,000.00 Program Hours TA Program HRS 1st QTR 300.50 227 2nd QTR 311.80 187 Total 612.30 414 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 – 6.30.2022 Open to Business 3137 Chicago Ave Minneapolis, MN 55407 612-789-7337 Industry Segment YTD Construction / Real Estate 7 Food 22 Health/Fitness 18 Manufacturing 4 Consulting 12 Retail 26 Service 27 Technology 5 Wholesale / Distribution 2 Other 5 Total 128 Referral Source YTD Bank Referral 12 Entrepreneur 4 Friends and Family 5 Municipality 56 MCCD Partner 8 Other 12 Web 31 Total 128 City YTD Business Resident Apple Valley 10 11 Burnsville 18 11 Eagan 20 16 Farmington 14 12 Hastings 9 6 Inver Grove Heights 7 5 Lakeville 12 11 Mendota Heights 4 5 Rosemount 9 9 South St. Paul 9 8 West St. Paul 5 4 Other Dakota Co. 1 0 Other/ No Data 10 30 Dakota County Quarterly Report 2 Direct Financing & Access to Capital Loan Closed Q1 - 2022: Business Type: Landscaping Business Business Location: Eagan Referred by: Partner Organization Bank Financing: $25,000.00 Owner Equity: TBD MCCD Financing: TBD – Application in Underwriting 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 soon. The business owner is a BIPOC woman and the project will retain 5 jobs for the community. Loan Closed Q2 – 2022: Business Type: Cooperative grocery store Business 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 four months in partnership with the City of Hastings and a local Hastings bank. Loan Approved Q2 – 2022: Business Type: Towing service Business Location: Minneapolis Owner Residence: Rosemount Referred by: Bank Partner MCCD Financing: $150,000 Owner Equity: $207,000 Other Financing: $2,700,000 Overview: MCCD was approached by one of our banking partners to provide gap financing for the purchase and improvement of the property where this towing business has operated since its inception in 2018. The business is currently the largest towing company in Minneapolis with contracts servicing public and private entities throughout the area. After a difficult 2020 as a result of COVID this business rebounded in full in 2021 and seized the opportunity to purchase the property from the owners when it became available in 2022. In addition to the purchase of the property, financing will also be utilized for significant improvements on the building and the exterior of the site. The project retains 8 employees and 15 full time contract drivers. The business is located in an underserved community. Dakota County Quarterly Report 3 Highlights, Networking, & Outreach Funding & Policy Updates • In November 2021 MCCD was selected to participate in the administration of MN DEED’s Main Street COVID Relief Grant Program. This July we wrapped up our portion of the admin. In total, MCCD funded 237 small business grants of $2,395,000! Staffing Updates • A new small business development internship program has been established and we’ve welcomed our first summer intern. The intern is working approximately 35 hours per week and is assisting the Open to Business team with a variety of ongoing administrative projects. • MCCD is hiring for two Business Advisor positions. Position details and application information available here. Programming, Partnerships, & Trainings • Ongoing: Seven MCCD staff members are working to complete 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. • May 4th: In partnership with Amplio, LEDC, WomenVenture, and the City of Woodbury, MCCD is co-hosted an in- person forum on nontraditional financing options including SBA programs, the MCCD loan program, and other regional CDFI lending options. The forum was well attended by lenders and partners in the region. • May 13th & June 10th: MCCD’s Emerging Leaders in Community Development program hosted monthly networking events with lawmakers, community development leaders, entrepreneurs, and governmental leaders to provide early and mid-career community development professionals access and opportunities. These events serve as inclusive and accessible spaces for those interested in networking in the community development space. Advertising & Outreach • Open to Business debuts new Loan Closing Highlights with a write up on recent loan closing in Hastings, MN. With the consent of the business, new loan closings will be featured as an easy-to-share highlight with details on the project, business photo, and financing summary. • MCCD’s OTB team rolled out Small Business Tours in June with a walking tour of the City of Northfield to meet local business owners and say hello to existing clients. In July a group of 12 MCCD staff and guests visited businesses in the City of Rosemount. Small Business Tours will continue throughout OTB geographies into the Fall and pick up again in Spring 2023. • 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 in Q1 2022 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. • In Q2, banker and lender meetings/outreach occurred specifically with 21st Century Bank, American Investors Bank and Mortgage, Bremer Bank, Choice Bank, CorTrust Bank, Frandsen Bank, Genisys Credit Union, HomeTown Bank, Dakota County Quarterly Report 4 Home Federal Savings Bank, Key Community Bank, Minnwest Bank, Old National Bank, Prime Security Bank, Spire Credit Union, Think Bank, Vermillion State Bank, and Wells Fargo Bank. • In addition to banker outreach, in Q2 and early Q3 presentations were made and/or networking efforts were made to Dakota County Regional Chamber & City of Eagan Coffee Break presentation on April 14th, Heartland Networking Group presentation on April 19th, Best Version Media (South Eagan Neighbors & Mendota Heights Living publications) presentation on April 25th, Transitions in Business on May 24th, Employers of Excellence Event on May 25th, Dakota-Scott County Workforce Development Board presentation on June 1st, ELCD Networking event on June 10th, the City of Rosemount Business tour on July 15th, and the City of Rosemount Port Authority presentation July 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 City of Farmington, the City of Lakeville, the City of South Saint Paul, and the City of Eagan. MCCD Client Profile Spiral Food Co-op has been a staple in Hastings, MN since 1979. After outgrowing its prior locations, Spiral opened its doors at 1250 S Frontage Road, Hastings in 2011 where it currently operates today. In Q2 of 2022 financing was obtained for a move within the current business location to an adjacent space that is almost double the square footage of the existing store. 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. “This expansion project really wasn’t going to start without the financing. The City was on board to participate but they weren’t going to be able to finance the entire gap. Without MCCD’s help I don’t know if we would have been able to complete the project. MCCD’s participation in the financing was really key for us to move forward. I would recommend MCCD to any business that is looking to grow within their community.” -Matt Malecha, General Manager of Spiral Food Co-op Hastings Spiral employee Cassie, General Manager Matt, and Business Advisor Natalie at Spiral Foods, June 2022. Dakota County Quarterly Report 5 Selected Program Feedback “You have been with us from the beginning. We could not have done it without you!” – Eagan Business Owner “I appreciate the advice the last time we spoke! We are excited for the next steps.” – Lakeville Entrepreneur “We just signed our lease, thanks again for all of your help!” – Rosemount Business Owner “Thank you for thinking of me for the grant application. I just submitted it!” – Inver Grove Heights Business Owner “I had a chance to review the information you sent me, and it was very helpful!” – Eagan Business Owner “Thank you so much for the information on financing options, Natalie! You’re a rockstar!” – Farmington Business Owner