Agenda - Economic Development Authority - 03/09/2017

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Approved Loan Direct- Business Type: Chemical Dependency Counseling Location: Anoka Resident (North Minneapolis Business) Referred by: Worked with Hennepin County Business Advisor OTB Financing: $6,000 Other Financing: NA Employment: 2 Full-time Owners Overview: This business is a licensed Rule 25 treatment center that offers chemical dependency and mental health services to clients. The business was providing services to its clients for approximately six months, but hadn't received reimbursement for those services from the insurance intermediaries. Payments for services generally come directly from third party insurance providers. The owners injected personal equity into the business to cover initial operating expenses while waiting for certification with two insurance carriers so they could bill for services already provided to clients. Additionally, owners were waiting to receive reimbursement from DHS Medical Assistance Program. The owners contacted Open To Business and requested a transactional loan of $6,000 to augment its cash flow while waiting to receive payment from DHS. Approved Loan Direct- Business Tvge: Street Sweeping/Cleaning Location: Blaine Business Referred by: Bank OTB Financing: $200,000 Other Financing: $200,000 — Owner Equity Employment: Expected to increase employees and/or keep help employed year round Overview: Looking to supplement sales/services in the slower winter months, the owner invented a product to help builders. Winters in MN and northern climes are the bane of builders. When the frozen ground is as hard as concrete, builders can either wait until spring to lay foundations or spend weeks (and thousands of dollars) trying to thaw the ground out with propane heaters. A problem solver by nature, the business owner had a better way for builders to deal with winter. He has invented a system that sinks giant drill bits into the ground that is faster and cheaper than the traditional propane heaters. Moreover, the giant drill bits also work well in drying out wet clay, the bane of builders in all climates. Open To Business has provided financing to this Blaine company to purchase the equipment it needs to scale up operations. The business owners have already obtained a contract with a major home builder this winter. Approved Loan Direct- Business Type: Dance Studio Location: Blaine Business Referred by: Bank OTB Financing: $150,000 Other Financing: $33,000 Owner Equity, and $1,647,000 Bank/SBA Financing Employment: NA Overview: The owner has been dancing or working in dance virtually her whole life, most of it at her current business in Blaine. In 2013, she purchased the company and doubled its enrollment in only three years. Having outgrown her existing space, the business owner found an ideal building in Blaine for her dance studio's new home. A Bank asked Open To Business to provide financing to this $1.8 million project to help bridge a collateral gap.