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MBFC Summer 2009 Newsletter – In Your Best Interest
MBFC Fall 2008 Newsletter – In Your Best Interest
MBFC Summer 2008 Newsletter – In Your Best Interest
MBFC Spring 2008 Newsletter – In Your Best Interest
MBFC Fall 2007 Newsletter – In Your Best Interest
MBFC Spring 2007 Newsletter – In Your Best Interest
Minnesota Business Finance Corporation Sends Professionals to School
MBFC Fall Newsletter – In Your Best Interest
Steven C. Preston Sworn In As Administrator of SBA
MBFC Summer Newsletter – In Your Best Interest
MBFC Spring Newsletter – In Your Best Interest
MBFC CEO Named SBA Financial Services Champion
Dance Pioneers Win SBA Entrepreneurial Success Award
MBFC Generates Record Amount of SBA 504 loans
$250,000 MBFC Grant Boosts Lakes Area Businesses
BRAINERD, Minn. – The Minnesota Business Finance Corporation (MBFC) presented a $250,000 grant to the Central Lakes College Small Business Development Center (CLC SBDC) that is expected to fuel business growth in the Brainerd lakes area by helping entrepreneurs start or expand businesses with United States Small Business Administration (SBA) 504 loans.
“This is one of the largest grants that we have developed for the Brainerd lakes area and an affirmation of our commitment to be a major financial partner for businesses in the region,” said MBFC President and CEO Alexandra Blum at a check presentation ceremony held yesterday at the CLC SBDC. The reception drew more than 100 people, including local government and business leaders.
"This grant money will have a direct impact on business investment and job growth in the region," said CLC SBDC Regional Director Greg Bergman. "It will provide entrepreneurs, who often face difficult challenges getting traditional bank loans, with another outlet to bring their imaginative products and services to the market."
The grant will be matched dollar for dollar with state and federal funds and thus generate a total of $500,000 for small business development in the north-central region covering Aitkin, Cass, Chisago, Crow Wing, Isanti, Kanabec, Mille Lacs, Morrison, Pine, Todd and Wadena counties.
The grant will expand CLC SBDC counseling services for area firms seeking financial assistance. Funds will be used to provide training to CLC SBDC counselors to help process SBA 504 loans for area entrepreneurs and business owners. SBA 504 loans are low-interest, fixed-rate loans offering smaller down payments than regular commercial loans. The CLC SBDC will be able to hire another counselor to help business owners apply for SBA 504 loans.
“The expansion of counseling services to help business owners apply for 504 loans will help speed up the disbursement of loans to area businesses,” said Michael W. Myhre, state director, Minnesota Small Business Development Centers.
Authorized by the SBA to develop 504 loans, the MBFC has approved loans on projects totaling $183 million to businesses in the 11-county, north-central region. Many of these loan applicants received business consulting assistance from the CLC SBDC, one of nine regional small business development centers located in Minnesota.
According to Blum, these loans retained 1,394 jobs that would have otherwise been lost due to proposed business closures or relocations. They also created 1,655 new jobs. Blum said 73 of the loans were made in Crow Wing County, predominantly in the Brainerd-Baxter area, creating 454 jobs and retaining 653 jobs.
Businesses that have benefited from SBA 504 loans include the Baxter Hampton Inn, Black Bear Lodge, Breezy Point Resort, Tuffy’s Dog Food, Good Neighbor Home Health Care, Just for Kix, Market Square, Brainerd Mobil, Furniture North, Panache Salons & Day Spas, and, among many other firms, R&P Catering.
“The Brainerd-Baxter area is currently undergoing a growth boom, and it is critical that the momentum be maintained by generating advantageous financing for local businesses,” said Blum.
SBA 504 loans promote small companies generating and retaining jobs. Manufacturers in the 11-county, north-central region qualify for SBA 504 loans of up to $4 million. Other businesses may receive a 504 loan of up to $2 million for commercial real estate or equipment projects.
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