Thursday, March 10, 2016 Michelle Mueller, Vice President of Minnesota Business Finance Corporation (MBFC) presented a grant check of $1,500 to Duane Northagen, Executive Director of Wright County Economic Development Partnership (WCEDP).
WCEDP plans to apply the grant funds to their new program called Creating Entrepreneurial Opportunities (CEO). It is a class concept for high school juniors and seniors who are interested in starting and operating their own business. Business participation in this program is essential for funding, mentorship, and 50-60 business visits annually. CEO is an extension of a national program offered through Midland Institute with an emphasis on offering business-prep type courses that are no longer offered in most traditional school settings.
For more information follow their website at: wrightpartnership.org
(Pictured: Terry Stein, Vice President-MBFC, Sheila Haverkamp, Executive Director-BLAEDC, and Joe Kammermeier, Vice President-MBFC)
MBFC Presents a Grant to Brainerd Lakes Area Economic Development Corporation
Minnesota Business Finance Corporation (MBFC) recently presented a $1500 grant to Brainerd Lakes Area Economic Development Corporation (BLAEDC) to support two campaigns that BLAEDC is working on in greater Crow Wing County.
Haverkamp stated one goal they have is finding permanent tenants for the Brainerd Industrial Park that is expanding. A huge feature of the Industrial Parks in Brainerd, Baxter, and Pequot Lakes is they are each located a quarter mile or less off of Highway 371! BLAEDC has programs to help grow small businesses and show the benefits available by locating your business in their area.
Their additional project’s purpose is a “Rent a Board” philosophy. This places high level Executives on a committee that can be brought in to help a business work through an issue. Business Executives from the Brainerd Lakes Area are part of this team and would be used on an as-needed project basis. This compliments their “Ask an Exec” initiative that is already a huge success.
These two ideas are reasons MBFC partners with BLAEDC and supports their mission. To learn more about BLAEDC and for quick access to their website, please click on the following link:
(Pictured: Karen Lauer, Economic Development Director of the City of Barnesville
and Chuck Nordquist, Vice President of MBFC)
Grant Awarded to Barnesville Economic Development Authority
On Tuesday, February 16, 2016 Chuck Nordquist, Vice President, Minnesota Business Finance Corporation (MBFC) presented Karen Lauer, Economic Development Director, Barnesville Economic Development Authority (EDA) a grant for $1000 to their organization.
Barnesville is a city off of Hwy 94 between Fergus Falls and Fargo on the Western side of Minnesota. With a population just under 3000, Barnesville has a growing economy through their continued focus on small businesses. The EDA highlights several incentives to draw companies to start, buy, or expand their business in Clay County.
For more information on Barnesville’s economic development please click the link provided here: Barnesville EDA
Grant Awarded to UMD Center for Economic Development
Wednesday, February 3, 2016 Terry Stein, Vice President of Minnesota Business Finance Corporation (MBFC) presented a grant for $1500 to Elaine Hansen, Director of UMD Center for Economic Development.
The UMD Center for Economic Development is located at 11 E Superior St. Ste 210, in Duluth, Minn. They provide professional consulting for Business Owners throughout all of Northeastern Minnesota. In addition to consulting they also host a variety of training seminars and educational workshops to enhance and strengthen existing businesses and Entrepreneurs.
To learn more click on the following link to their website: UMDCED
SBA 504 DEBT REFI APPROVED BY CONGRESS!
After years of advocating on Capitol Hill by commercial real estate industry leaders, the SBA 504 Loan Refinancing Program has been permanently reinstated more than three years after it expired in 2012. Also known as the Commercial Real Estate and Economic Development (CREED) Act, the program will allow small business owners to refinance eligible business debt into a new loan through the SBA 504 program.
Since the current SBA 504 program only allows for acquisition loans, this will dramatically increase the number of loans that can be funded under the SBA 504 program for many banks and third party lenders. One of the many key benefits of the SBA 504 program is that it is a fixed rate loan.
Some background: The SBA 504 Loan Refinancing Program (aka Commercial Real Estate and Economic Development (CREED) Act) was originally enacted as part of the Small Business Jobs Act of 2010. It expired in 2012 but in that time it was responsible for refinancing $5 billion of debt for U.S. small business owners at no cost to taxpayers, according to figures released by the National Association of Development Companies (NADCO), a trade association of SBA lenders and Certified Development Companies (CDCs).
How did this happen? The provision was placed into the omnibus bill that will fund the government for the rest of FY 2016. In a summary of the bill by the U.S. House Appropriations Committee it says that the agreement “…includes a provision to reauthorize the 504 refinance program at $7.5 billion to help business owners refinance their commercial mortgages…”
NADCO released a statement on Wednesday morning about the bill. “Congress has added a few additional caveats on debt refi in exchange for its return,” the statement said. “The program can only be used in years that both standard 504 and the refi program are at zero subsidy. Additionally, a CDC’s 504 portfolio, by dollars, must be at least 50% standard 504 loans. Refi loans cannot make up a majority of the portfolio. A waiver provision exists if SBA sees good cause for additional refi loans to be made.”
SBA has said that it will take up to six months before the refinance program can be restarted.
As additional information becomes available, we will pass it along as quickly as possible. Feel free to give your MBFC Business Development Officer a call to discuss details!