MBFC customer wins Small Business Excellence Award

Lind-Rite Precision Company, owners Dan Kotek and Marilyne Morisette, were awarded a Small Business Excellence Award at the Minnesota Annual Small Business Awards Ceremony held May 6, 2014.

Lind-Rite Precision Company was started in 1987 in a double garage in Alexandria, MN by Rod Femrite and Jeff Lindner. In 2006 the company moved into a new 22,500 sq. ft. facility in Osakis, MN – population 1700.

In 2012, Rod decided it would be time to retire. Jeff was no longer involved in the day to day operations of the business, so Rod extended his search for potential buyers. Knowing he wanted to keep his company in Osakis, Rod turned to his key employees, Marilyne Morisette and Dan Kotek. Marilyne started in 1993 and handled the company’s accounting, payroll, and human resources. Dan had been with the company since 2005 and was the Operations Manager overseeing shop employees, sales, and estimating.

Rod was confident Marilyne and Dan could run Lind-Rite; however, finding financing was the next hurdle. The company just came through some tough times during the recession and was bouncing back very strong. Marilyne and Dan turned to the Small Business Development Center (SBDC) in Moorhead  to assist them in putting together financial projections. Sr. VP Nadene Kruize with MBFC assisted Marilyne and Dan in putting together two SBA 504 loans: one for the real estate purchase and one for the equipment purchase of the business. They utilized Central MN Credit Union as their lead lender. West Central Initiative Foundation also assisted in gap financing for the project.

Dan and Marilyne took over operations in September 2012 and Lind-Rite has continued to grow. Sales increased in 2013 by 15%. In addition, in 2013 Lind-Rite has grown from 33 to 45 fulltime  jobs at the company. Dan and Marilyne have accomplished Rod’s dream of keeping Lind-Rite in Osakis, MN and a perfect example of what the true purpose of the SBA 504 Program is all about!

From left to right: Nadene Kruize, Senior Vice President-MBFC, Albert and Marilyne Morisette, and Dan Kotek

From left to right: Nadene Kruize, Senior Vice President-MBFC, Albert and Marilyne Morisette, and Dan Kotek

Save the Date for the SBA Minnesota Lenders Conference

Thursday, September 4th, 2014 the SBA Minnesota District Office is presenting the 2014 Minnesota Lenders’ Conference. There will be workshops, exhibitors, and MN Lenders’ Awards. The conference will take place at the Marriot Minneapolis Northwest in Brooklyn Park. Registration details will be posted soon.

Highlighted to attend are Commercial & Business Banking Lenders, Credit Union Lenders, Credit Analysts, Underwriters, Credit Administration, SBA Servicing Providers/Loan Packagers, Certified Development Companies, and many more.

Please ‘Save the Date’ to attend one of Minnesota’s biggest SBA events of the year and get up to date connections with industry experts such as MBFC!

2014 SBA Minnesota Lenders’ Conference  (click for a link to the SBA flyer)

Columbia Heights Business Council to have MBFC present this Friday

Michelle Mueller, MBFC Vice President of Business Development, is presenting Friday, April 4th from 7:30-8:30 a.m. at the Columbia Heights Business Council meeting which is part of the Twin Cities North Chamber of Commerce.

The Columbia Heights Business Council meets the first Friday of each month on the 6th floor of the Northeast Bank Building on the corner of 40th and Central.

These meetings are typically attended by the City Mayor, City Administrator, City Community Development Director, County Commissioner, Fire Chief, Police Chief, School District, and many Twin Cities area businesses.

For more information click here.

MBFC presenting at RMA Minnesota Chapter event April 2, 2014

Wednesday, April 2 (8am – 12pm)


Do you know the difference between SBA 504 and 7(a) loans?  These program allows lenders to minimize their exposure, reduce risk and assist their customers with enhanced terms.This half-day course is for any lender seeking to understand how to structure 504 and 7(a) loans based on eligibility factors, credit underwriting expectations of SBA and file documentation requirements.  All of these topics will be covered within the discussion of specific loan request examples.

Time will be allocated at the end of class to address any structure or packaging issues submitted by the class.


  • Erin Procko, Bell State Bank & Trust – Erin has over 12 years experience in commercial and SBA lending with a primary focus on the SBA 7(a) and Express programs.
  • Michelle Mueller, Minnesota Business Finance Corporation – Michelle has over 30 years of experience in economic development and 19 years specifically with the SBA 504 program.

LOCATION: Bell State Bank & Trust
The Colonnade Building (lower level, Conference Room C)
5500 Wayzata Blvd |  Minneapolis, MN 55416

(includes light breakfast)

  • $150 – Chapter Affiliates
  • $200 – Non Affiliates/Guests

PLEASE NOTE: A RMA Minnesota Chapter Affiliate is an individual who has paid the annual RMA Minnesota/Local Chapter fee for the 2013/2014 term (Sept. 1, 2013 – Aug. 31, 2014).  National Membership does not qualify for member rates/benefits at Minnesota Chapter events.

Please click here for a link to the RMA Minnesota Chapter site to register or for more information. 

Significant SBA 504 Program Changes


Today the SBA published new regulations in the Federal Register that will positively affect the SBA 504 Program. These changes will be effective as of April 21, 2014.

A summary of the changes are as follows:

Elimination of the Personal Resource Test – Section 120.102
“SBA will no longer require that the personal resources of owners be used to reduce the SBA funded portion of the total financing package. Lenders should continue to follow prudent lending practices and require that assets either be injected or pledged as collateral for a particular loan if deemed prudent.”

In the past, depending on the size of the 504 project, if a borrower had significant personal liquid assets over and above the project size – they may have been required to inject a portion into the project. This Personal Resource Test has now been eliminated all together.

The “9-Month Rule” – Section 120.882(a)
SBA will eliminate paragraph (a)(2) of this section which limits Project expenses eligible for 504 Loan Program financing to those incurred within 9 months prior to receipt by SBA of a complete loan application. This change will permit financing of expenses toward a Project regardless of when they were incurred, so long as they are directly attributable to the Project. SBA will continue to determine whether expenses incurred prior to application were in fact incurred for a 504 project.

For more detailed information please contact your local MBFC Business Development Officer by clicking the “Contact Us” tab above.