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Home My WebLink AboutV.A. Dakota County OTB YE Report 2022 Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 Clients Served YTD Client Inquiry 17 Existing - Challenged 16 Existing -Opportunity 51 Pre-start planning 39 Start-up 47 Total 170 Business Owner Demographics YTD Low-Income Owned 58 BIPOC or Immigrant Owned 90 Woman Owned 85 Financing & Access to Capital YTD Approved (YRLY Total) $ 576,000.00* Equity (YRLY Total) $ 593,000.00 Facilitated (YRLY Total) $5,545,300.00** *Includes $30,000 in forgivable loans. **Includes $11,300 in microgrants. Program Hours TA Program HRS 1st QTR 300.50 227 2nd QTR 317.30 187 3rd QTR 218.00 182 4th QTR 257.13 200 Total 1,092.93 796 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 4th Quarterly Report 12.31.2022 2 Industry Segment YTD Construction / Real Estate 8 Food 26 Health/Fitness 21 Manufacturing 6 Consulting 15 Retail 37 Service 39 Technology 5 Wholesale / Distribution 3 Other 7 Total 170 Referral Source YTD Bank Referral 14 Entrepreneur 4 Friends and Family 8 Municipality 71 MCCD Partner 16 Other 22 Web 35 Total 170 City YTD Business Resident Apple Valley 16 16 Burnsville 23 15 Eagan 25 22 Farmington 16 17 Hastings 12 9 Inver Grove Heights 10 8 Lakeville 16 14 Mendota Heights 6 5 Rosemount 15 15 South St. Paul 13 10 West St. Paul 7 5 Other Dakota Co. 2 1 Other/ No Data 12 31 Dakota County 4th Quarterly Report 12.31.2022 3 Direct Financing & Access to Capital Business Type: Cooperative grocery store Business Location: Hastings Referred by: City of Hastings MCCD Financing: $50,000 Owner Equity: $135,000 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. 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. Business Type: Home Healthcare Business Location: Shakopee Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $112,000 including a $25,000 forgivable loan Owner Equity: $89,000 Other Financing: $344,000 Overview: MCCD provided gap financing for a BIPOC-owned community and home care business that provides 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 4th Quarterly Report 12.31.2022 4 Business Type: Candy & Party Supply Store Business Locations: Inver Grove Heights Owner Residence: Inver Grove Heights Referred by: Community Partner MCCD Financing: $24,000 including a $5,000 forgivable loan Owner Equity: $5,000 Overview: MCCD was introduced to this family of business owners through a community partner. The family operates a full-service Mexican restaurant in Inver Grove Heights and saw an opportunity to expand when the space next door became available. The restaurant’s customers have often inquired about where to find Mexican candy and party favors and were driving to St. Paul to make their purchases. The family approached MCCD for working capital to help them establish a candy store with pinatas and party supplies. The new store creates two jobs and the business is owned and operated by BIPOC, immigrant business owners. Business Type: Insurance Agency Business Location: Hastings Owner Residence: Hastings Referred by: Bank Partner MCCD Financing: $115,000 Owner Equity: $32,000 Other Financing: $140,000 Overview: MCCD partnered with a local Hastings bank to provide financing for a longstanding Hastings business owner to purchase a new building in downtown Hastings and complete necessary renovations on the building. The business owner has operated a successful insurance agency in downtown Hastings for many years and the move to purchase her own space there has been a long-term business goal. Business Type: Thai Grocery Store (approved Jan 2023) Business Locations: Burnsville & South Saint Paul Owner Residence: Woodbury Referred by: Bank Partner & City of South Saint Paul MCCD Financing: $125,000 Owner Equity: $125,000 Other Financing: $1,920,000 Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well as a deli walk up window. The project is a ground up construction of a multitenant building which will include space for two additional tenants. MCCD financing will be utilized for construction costs. “This is great! I can't believe these services are offered by the city.” - Eagan business owner Dakota County 4th Quarterly Report 12.31.2022 5 Business Expansion Grants Business Type: Photography Business Location: Burnsville Referred by: Municipality MicroGrant: $4,000.00 Grant Application Facilitated by MCCD Overview: This low-income, women business owner learned of the Open to Business program through the City of Burnsville’s newsletter and reached out in early 2022.  The business was established in 2020 and after a few setbacks early on, the business needed a restart 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, the business received a $4,050.15 microgrant for business expenses in August 2022.  This influx of capital will allow the business to re-launch and set the owner up for a strong selling season.    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. Business Type: Online Retail Business Location: Burnsville Referred by: Municipality MicroGrant: $2,500 Grant Application Facilitated by MCCD Overview: This client was a low-income woman head of household business owner. She became unemployed and started her online retail company in the fall of 2022. After working with Open to Business to find grant funding, develop a business plan, and get connected to the Legal Clinic, she still needed capital for inventory and equipment cost. Through Open to Business, the business received a $2,500 microgrant for business expenses in December 2022. “Our partnership with the Open to Business program has been extremely positive. We have partnered to provide our customers with creative financing solutions that meet their needs. In addition, the expertise that they provide with start-up, expansion and organization has benefited the business community. We are grateful for their assistance in helping us serve our customers.” – VP Commercial Banking, Dakota County “I really appreciate what you guys do!” - South St. Paul business owner Dakota County 4th Quarterly Report 12.31.2022 6 Highlights, Networking, & Outreach Funding & Policy Updates • MCCD is named an approved lender in MN DEED’s new Minnesota Loan Guarantee Program (MNLGP). MNLGP is funded through the US Department of the Treasury’s State Small Business Credit Initiative. • In partnership with Minnesota’s Department of Human Services, MCCD launches Minnesota’s first Home and Community Based Services Workforce Development cooperatives grant program. Direct support professionals or retiring business owners who are interested in developing employee-owned cooperatives can apply for the cooperatives grant opportunity via MCCD’s website. Ten grants are available to qualifying applicants and selected groups will receive up to a total of $100,000, split over two years, to help direct care workers establish their own employee-owned cooperative businesses or transition a current business to an employee-owned cooperative. More information available via MCCD & MN DHS. • In collaboration with Main Street Alliance and the Workplace Justice Lab at Rutgers University, and funding from the City of Minneapolis, MCCD rolled out the Payroll Subsidy Program, a pilot program to subsidize payroll services and provide support to implement those services for small business owners in Minneapolis. The program aims to reimagine what holistic business support and labor enforcement can look like in the region and address disparities that exist in the ability of small business owners to provide good jobs and comply with labor laws. More information available here. Staffing • MCCD added two new accounting and bookkeeping consultants to the Open to Business team in Q4. Wendy Hines has nearly 20 years of business advising experience with NDC and 40 years of bookkeeping and tax preparation experience as the owner of Beatrice David & Associates. Luis Rodriguez brings more than 10 years of accounting experience. Both consultants will assist clients with accounting-related questions and bookkeeping. MCCD is pleased to provide up to 10 free hours of bookkeeping, QuickBooks, and accounting related assistance to all clients by way of these consultants. Programming, Partnerships, & Trainings • October 7: Field Trip Fridays continued with a business tour of Lakeville. MCCD staff was joined by the City staff, the Chamber, and the CDA to meet local business owners and say hello to existing clients. • October 27: MCCD hosted the 33rd Annual Meeting where we celebrated our team, community impact, donors, policy supporters, and consortium members. The night started with spoken word by MCCD's Ray Camper, keynote speaker Representative Mohamud Noor, music by Kashimana which was followed by stories of success from our community members. • November 10: MCCD hosted a virtual Minnesota Small Business Law Q&A webinar in partnership with the University of Minnesota’s Law School. Legal experts provided transaction-based legal assistance to small businesses on a variety of subject matters such as entity formation, owner distributions, commercial lease review and more. This virtual Q&A was attended by 16 business owners plus MCCD staff. • November 10: Dakota County CDA promoted Open to Business at the Cocktails and Conversations tabling event at Brackett’s Crossing County Club in Lakeville. • December: MCCD developed and rolled out a digitized Client Intake Form. The form is accessible online and syncs automatically with our database. The new capabilities will streamline the intake process for clients and business advisors alike and greatly reduce data entry time for MCCD staff. “Thank you for your thoroughness.” - Rosemount business owner Dakota County 4th Quarterly Report 12.31.2022 7 Advertising & Outreach • In Q4, banker and lender outreach occurred specifically with CorTrust Bank, Merchants Bank, and Think Bank. • In addition to banker outreach, in Q4 written or in-person presentations were made and/or networking efforts were made including the City of Lakeville business tour on Oct. 7 and regular meetings with the Workforce Development Board’s Business Services/Economic Development Committee. Partnership development / updates occurred with the University of MN Law School, Minnesota State University Mankato, Dakota County CDA, the City of Farmington, the City of South Saint Paul, the City of West Saint Paul, and the City of Eagan. • 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. MCCD Client Profile Meet Cassandra Manning, owner of Thread and Clover Clothing Boutique in Rosemount. Cassandra’s professional background is in retail management and she was a stylist for years with Stitch Fix. This experience set the stage for her big dream of opening her own boutique in her home city of Rosemount. Cassandra’s approach to her business is to provide highly personalized styling services and a perfectly curated experience for her customers. After launching her store online, Cassandra embarked on a months long journey of careful planning to open the brick and mortar location. After finding the right space and completing a short build-out, Thread and Clover opened its doors in September 2022 with five employees. “The City of Rosemount has been incredibly supportive! Everyone was so easy to work with and very small business friendly. I think that Rosemount is the best city to open a new business in and I love that they offer the Open to Business service. The help you provided came at just the right time for us. I appreciate how responsive you were and how quickly you were able to meet. There’s so much that I didn’t know when I got started with this process and I’ve learned a lot in the past four months!” Thread and Clover 15094 Claret Ave W, Rosemount, MN 55068 https://threadandclovermn.com/