EDA Packet 06.21.22 - Laserfiche WebLink

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Direct Loans - (YTD 2022): Business Type: Restaurant Owner Location: Hugo, MN, restaurant is in St. Paul Referred by: Bank OTB Financing: $250,000.00 Owner Equity: $170,000.00 Overview: The business is 100% BIPOC-owned. The Hugo-residents currently own a building in St. Paul where they run their grocery store and they requested a $250,000 loan to build out and open a new authentic family restaurant within the same building. The original concept was created with a belief that newly arriving or long-term immigrants wanted groceries and ingredients from their homeland to make the United States feel like their original homeland. The restaurant is expected to open in July 2022. Business Type: Retail Business Location: Stillwater Referred by: Municipality OTB Financing: $25,000.00 Owner Equity: $10,000.00 Overview: This 100% woman-owned business will be opening a boutique store that focuses on witchcraft & holistic healing. The store will have ethically sourced & organic products, along with handcrafted products by the owner. The owner will also be offering classes on holistic healing, medicines, tarot reading, scrying & witchcraft classes. Products include witchcraft, ritual, divination supplies, along with herbs, crystals, oils, books and tarot. Business Type: Restaurant Owner Location: Hugo, MN, restaurant is in Cannon Falls Referred by: Bank OTB Financing: $50,000.00 Owner Equity: $13,000.00 Overview: The business is 100% BIPOC-owned and a long-running restaurant in Cannon Falls. One of the owners resides in Hugo. This loan will allow them to provide improvements and updates of the business. They are asking for $25,500 that will be used to purchase a new security system, new electric hot food table, reach in refrigerator, also to replace the rooftop HVAC system on their building. These funds will assist with property improvements and overall increase their profitability by offering a sound establishment. The remainder of the loan will be to consolidate higher interest rate loans. YTD 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 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