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Dakota County 3rd QTR 2022 Business Advisor for Dakota County: Elle Khang ekhang@mccdmn.org (612) 712-1065 Clients Served YTD Client Inquiry 16 Existing - Challenged 15 Existing -Opportunity 49 Pre-start planning 35 Start-up 40 Total 155 Business Owner Demographics YTD Low-Income Owned 53 BIPOC or Immigrant Owned 79 Woman Owned 76 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 3rd QTR 216.50 182 Total 828.80 596 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 3rd Quarterly Report 9.30.2022 2 Industry Segment YTD Construction / Real Estate 8 Food 25 Health/Fitness 19 Manufacturing 6 Consulting 14 Retail 32 Service 36 Technology 5 Wholesale / Distribution 3 Other 7 Total 155 Referral Source YTD Bank Referral 13 Entrepreneur 4 Friends and Family 6 Municipality 67 MCCD Partner 13 Other 18 Web 34 Total 155 City YTD Business Resident Apple Valley 14 13 Burnsville 22 14 Eagan 23 20 Farmington 14 14 Hastings 10 7 Inver Grove Heights 9 7 Lakeville 15 13 Mendota Heights 4 5 Rosemount 12 13 South St. Paul 22 3 West St. Paul 6 12 Other Dakota Co. 2 2 Other/ No Data 12 31 Dakota County 3rd Quarterly Report 9.30.2022 3 Direct Financing & Access to Capital* 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: Expected to close in late October or early November. 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. Loan Approved October 2022: Business Type: Home Healthcare Business Location: Shakopee Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $112,000 Owner Equity: $86,000 Other Financing: $344,000 Overview: MCCD provided gap financing for a BIPOC-owned licensed community and home care provider that provides providing compassionate senior care services across the Twin Cities. The financing was in partnership with a bank and financed the purchase of residential real estate for the operation of in-home services. MCCD financing will provide additional capital to get the new line of business up and running and to assist with working capital for the first 6 months while they secure licensing. Dakota County 3rd Quarterly Report 9.30.2022 4 Business Expansion Grants Business Type: Photography Business Location: Burnsville Referred by: Municipality MicroGrant: $4,000.00 Grant Application Facilitated by MCCD Overview: See client highlight below. Business Type: Paralegal & Logistics Business Location: Eagan Referred by: Community partner MicroGrant: $4,800.42 Grant Application Facilitated by MCCD Overview: This BIPOC, veteran, low-income business owner was struggling to reestablish his paralegal business post- COVID. The business owner reached out to Open to Business for financing to start a new line of business: logistics and freight forwarding. Financing was not feasible, and the business owner had already exhausted his resources obtaining the certifications and training necessary to start this new business line. The microgrant will provide the capital needed to purchase equipment and technology and give him working capital for a bit of a runway/a ramp-up period. Highlights, Networking, & Outreach Funding & Policy Updates • MCCD received $20,000 grant in August from the WCA Foundation in for its Credit Builder Program, which makes small loans to women and counsels the recipients through the repayment process, thus increasing their ability to get larger loans from traditional banks in the future. • 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 • MCCD announced the hiring of two new business advisors in 3Q22 to work primarily in our Hennepin, Ramsey and Dakota markets. o Elle Khang is working with the City of Northfield and Dakota County clients. Elle brings experience as a business advisor, as well as operations and project management at her time at NDC. In that role, she worked closely with BIPOC, women, immigrant, and low-wealth entrepreneurs as well as managing a CRM implementation project that migrated over 25 years of data into their Salesforce system. She also worked as a loan officer at Hiway Credit Union before her time at NDC. Elle has language proficiency in Hmong and will be supporting clients in Ramsey, Hennepin and Dakota Counties. Elle started on August 1st. o Zamzam Mohammed started on August 22nd and will start working in Hennepin County. Zamzam has a background as a development professional with over three years of experience in nonprofit fundraising. In her most recent role as Fundraising Manager for Artspace, she solicited donor funds from local community members/board and corporations, manage each step of the prospecting process, and plan donor cultivation coordinator. Zamzam has language proficiency in Somali. Dakota County 3rd Quarterly Report 9.30.2022 5 • We will continue working with the Humphrey Fellow program and have accepted the next professional affiliation of Leakhena Saroeurn from November 2022 - April 2023. Leakhena is from Cambodia and is a country manager of Support Her Enterprise (SHE investments). She specializes in building gender-responsive systems with the cultural tailor in micro, small, and medium (MSME) women-led businesses in specific industries in developing countries. She has experience leading programs, impact investments, research and development, program and social investments evaluation, community development, youth engagement, and policy analysis for the community's economic growth. • MCCD ended its Professional Affiliation for Eman Alaghbari, a Humphrey Fellow and Fulbright Exchange Scholar from Yemen on 5/31. Eman worked with MCCD leadership and the Open to Business team on community and economic development strategies, tools, and resources. • MCCD added two part-time accounting and bookkeeping consultants, Luis Rodriguez Dominguez and Wendy Hines. Both will assist Open to Business clients. • MCCD wrapped up the Small Business Development internship of Akshit Bhati. Akshit assisted on a number of projects, including assisting business advisors with daily functions, assisting with a Salesforce data project which will help us reach our clients in a targeted and efficient ways when resources become available, research on history of inequities in business capital access and a project concerning member outreach. The small business development internship program is new, and we are excited to continue the program to develop early-career professional and to help create advisor training for the field. Programming, Partnerships, & Trainings • Five MCCD business advisors completed the National Development Council’s Economic Development Finance 101 class. The BA’s 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. • July 8 & August 12: MCCD’s Emerging Leaders in Community Development program hosted 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. • September 6: In partnership with Sunrise Banks, MCCD hosted a small business lending webinar for business owners seeking to learn more about financing through the SBA, traditional loans, and MCCD’s lending capabilities. The webinar was well attended by clients and community members. The recording is available to view here. Start at 5 min. • On September 16th, MCCD hosted a Small Business Networking Event, including a breakfast meet & greet in the morning and a networking social in the afternoon. • September 30: MCCD staff members completed the National Development Council’s Economic Development Finance 101 class. Graduates built on their existing knowledge base and furthered their understanding of both the basic tools and newest techniques used by successful economic development finance practitioners to assist small businesses and create jobs. • November 10: MCCD will be co-hosting alongside The Legal Clinic (University of Minnesota) another Minnesota Small Business Law Q&A webinar where upper-level students (overseen by faculty) provide transaction-based legal assistance to small businesses on a variety of subject matters like entity formation, owner distribution, commercial lease review and more. Advertising & Outreach • In Q3, banker and lender outreach occurred specifically with 21st Century Bank, American Investors Bank and Mortgage, Choice Bank, CorTrust Bank, Frandsen Bank, HomeTown Bank, Key Community Bank, Merchants Bank, Minnwest Bank, My Home Town Bank, and Think Bank. • In addition to banker outreach, in Q3 written or in-person presentations were made and/or networking efforts were made including the following: The City of Rosemount Business tour on July 15th, and the City of Rosemount Port Authority presentation July 19th, the City of Inver Grove Heights on August 1st, the City of South Saint Paul Dakota County 3rd Quarterly Report 9.30.2022 6 on August 16. 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, the City of Farmington, the City of Burnsville, the City of South Saint Paul, and the City of Eagan. • MCCD’s OTB team rolled out Field Trip Friday 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 and in October a group visited Lakeville. Small Business Tours will continue throughout OTB geographies as weather permits and pick up again in Spring 2023. (L-R) Elena Gaarder, Tina Goodroad, Kati Bachmayer, Krista Jech, Tyler Hilsabeck, Lisa Alfson, Kelly Law, Mara Brooks, and Cindy Ohlenkamp at Tapestry Coffee during Field Trip Friday to the City of Lakeville. • Open to Business debuts new Loan Closing Highlights with a write up on any recent loan closings. 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. • 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. Selected Program Feedback “Thank you so much for the information. You really are a nice person and you heard me. Thank You so much for that.” – Apple Valley Business Owner “From the beginning of our business, the MCCD has been there to help us out. From zoom meetings to business plans to all other business-related documents they've helped tremendously by advising and assisting us in any way we needed. In particular, Natalie Mouilso was the one who helped us out from the beginning. Whenever I needed help, Natalie would assist us in any way, shape, or form which was great for first-time business owners like myself. I couldn't recommend the MCCD enough for other business owners.” – Eagan Business Owner Dakota County 3rd Quarterly Report 9.30.2022 7 MCCD Client Profile Meet Lynn Schwartz, photographer and owner of Photos by Lynn 13. Lynn learned of the Open to Business program through the City of Burnsville’s newsletter and reached out in early 2022. A retired special education teacher with a life- long passion for photography, Lynn established her business in 2020. After a few setbacks early on, Lynn was looking to restart her business in 2022. After working with Open to Business on organization, record keeping, marketing, and networking the missing piece was working capital for supplies, inventory, and entry fees for art fairs and seasonal events. Through Open to Business, Lynn applied for and received a $4,050.15 microgrant for business expenses in August 2022. This influx of capital will allow Lynn to re-launch her business and set her up for a strong selling season. Find Lynn’s work at her website, Etsy shop, and at events throughout the region including the Junkin Market Days (Sept- Oct), MPLS Gift and Art Expo (Nov), Autumn Festival at Canterbury Park (Nov), Washington Co. Holiday Bazaar (Nov). Beth Weber, Lynn Schwartz, and Natalie Mouilso at Burnsville City Hall for Microgrant check presentation, August 2022. “Thank you for assisting me in getting the microgrant. With it I was able to enter and pay for more than a dozen events. Additionally, I was accepted to several juried events and obtained some inventory. Plus, I was able to obtain the camera equipment needed for portraits and was able to book two portrait sessions. Thank you for your belief in me!” – Lynn Schwartz, MCCD Client & Microgrant Recipient