The Historic John P. Furber Farm Project Receives MBFC’s VetLoan Advantage Rebate
Minnesota Business Finance Corporation (MBFC) is honored to present Wayne and Angi Butt, the owners of The Historic John P. Furber Farm, our VetLoan Advantage rebate check for $3,000. MBFC is the only Certified Development Company in Minnesota to offer a rebate to business owners that are active or retired members of military service.
Wayne is a disabled veteran that served 20 years in the US Navy and the MN Army National Guard. He retired at the rank of First Sergeant (E-8.) After his honorable discharge from the Navy, Wayne has been working in the IT field. He and his wife, Angi acquired the John P. Furber Farm in Cottage Grove in 2010 with plans to convert the barn to an event center. After 160 years, this was only the third time in history that the farm changed hands.
John P. Furber was one of Cottage Grove’s founding fathers. In 1850, he built an historic Italianate home on the property where it still stands today. In 2013, the 1947 Gothic Arched-Roof Barn was place on the Historic Register and the City of Cottage Grove approved the project to renovate the barn into an event center. Wayne and Angi’s goal for the property was to restore the barn and put it back into productive use for the community.
The barn boasts over 8,000 square feet, and can hold up to 500 guests. There is an additional 3,000 square foot addition that includes separate bride and groom suites and the restrooms. For wedding ceremonies, there is an outdoor area with seating that overlooks the peaceful countryside. The Historic John P. Furber Farm has hosted many weddings, a high school prom, and several community events. Wayne and Angi strongly believe in sharing this beautiful facility with the community and work to assist non-profits in the area with their meetings and celebrations. For more information please visit their website here.
Wayne and Angi proudly hang a large American flag in the loft area of the Barn. MBFC thanks Wayne for his service to our country. For additional information or to inquire about MBFC’s VetLoan Advantage Rebate program please contact your MBFC Business Development Officer today.
Minnesota Business Finance Corporation (MBFC) recently presented a grant to the City of Wyoming Economic Development Authority (EDA). Terry Stein, Vice President of Business Development of MBFC, met with Nancy Hoffman, Executive Director of Chisago County HRA/EDA, to present the award. MBFC is proud to partner with the EDA which furthers the purpose of continued economic development in communities across the state.
Hoffman said the funds from the grant will be used to assist with hiring a consultant to facilitate an Economic Strategy. The City of Wyoming EDA would like to provide the framework to promote the local community to businesses. The consultant would also assist with preparing an economic strategy as part of the development planning process.
Wyoming is located about 30 miles north of the Twin Cities Metro Area and is a growing part of Minnesota. Their goal is to continue to grow and attract new commerce and industry. A link to their website is provided here: wyomingmn.org For more information about the MBFC grant program and application details for your organization please contact Tom Saehr, President & CEO of MBFC
Brainerd Glass Company Awarded MBFC’s VetLoan Advantage Rebate!
Minnesota Business Finance Corporation (MBFC) is pleased to present a VetLoan Advantage Rebate of $3,000 to Charles Deutsch, President, of Brainerd Glass Company. MBFC is the only Certified Development Company (CDC) in Minnesota to offer a rebate to business owners that are active or retired Military Members. The VetLoan Advantage is part of a strategic initiative of the National Association of Development Companies (NADCO) of which MBFC is a member.
Brainerd Glass Company has been in operation for over 60 years. Deutsch has worked for the company since 2003 and in 2009 he and his wife decided to purchase the business. Charles qualifies for the VetLoan rebate for his Military Service in the U.S. Air Force. Some of Brainerd Glass Co’s products include insulated glass, shower enclosures, decorative glass products, glass storefront and entrances, auto door operations, custom mirrors, retail screen and storm repairs, as well as aluminum deck railings, to list a few!
The SBA 504 loan was used to purchase a building and expand their existing operation. The new location provides a retail storefront and office space including showroom areas for their products. With their growth they were in need of additional office space and warehouse room. Deerwood Bank of Baxter also successfully partnered with the project.
MBFC thanks Chuck for his Military Service and for more information about Brainerd Glass Company click here. For additional information or to inquire about MBFC’s VetLoan Advantage Rebate program please contact your MBFC Business Development Officer today!
SBA has made favorable changes to the SBA 504 Refinance Program!
Eligibility – New Business Definition
The borrower must have been in operation for 2 years as of the application date evidenced by financial statements submitted with the application. Any ownership changes during this 2 year period, SBA was ruling as a new business and automatically ineligible.
Rule Change: If there has been a change of ownership in the 2 years prior to application – SBA is stating it’s a new business and ineligible only if it’s a change in ownership that would have resulted in new, unproven ownership/management.
Cash Out / Business Operating Expenses Loan-to-Value 75% to 85%
For any project that includes cash out / financing of “Business Operating Expenses”, a maximum 75% loan to value of the refinancing project applied.
Rule Change: SBA has increased the maximum loan-to-value of the refinancing project to 85% for a project including cash out / financing of “Business Operating Expenses”.
The cash out portion of the refinance project stays the same – cannot exceed 25% of the value of the eligible fixed asset securing the Qualified Debt.
SBA was requiring appraisals to be dated within 6 months of application.
Rule Change: SBA now requires appraisals must be dated no later than 1 year prior the application approval.
We’ve seen the 504 Refi Program assist in refinancing contract for deeds and also utilizing the cash out capability to free up working capital to be used for many different things.
The 504 Refi Program can also help lenders with lending limit concerns and concentrations in particular industries.
These are favorable rule changes just in time for year-end renewals. Keep in mind the 504 Refi Program can assist in attracting new clients with below market, long term, fixed rates!
If you’d like to learn further details or schedule an individualized on-site training, give your MBFC Loan Officer a call.