Financing Business Opportunity  

July 2013
In This Issue
Uncorked opens in Ukiah
Lemonade Day
SBA 504 Update
Local Resources for Business
Quick Links
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Greetings!

 

Happy Fiscal New Year, everybody! 

 

This year is AEDC's 35th year helping community economic development. Over the years, we have developed a quiver full of arrows for your business financing needs . 

 

We're available for small micro-loans as low as $5,000, or we can finance large commercial property for up to $5 million. 

 

Where we started in Arcata, we now serve a large geographic region including Humboldt and Del Norte, Mendocino and Lake, Siskiyou, Trinity and sometimes Shasta Counties. 

 

We can work with community partners to take on large projects like the Open Door Community Health Center in Eureka, or we can work with communities like the City of Arcata to provide low-interest business loans. If you have business financing needs, AEDC has the experience to look at all the options to see what works best  for you.

  

Financing partnership helps new restaurant UNCORKED in Ukiah

           

Uncorked

Mendocino County now has a new wine bar and restaurant thanks to one ambitious entrepreneur and help from AEDC and another local business development agency.

 

Kerri Barnett recently opened the new wine bistro Uncorked at 110 W. Standley St. in downtown Ukiah. Her original plan was to open a wine bar that focused primarily on the wine, a somewhat lower cost endeavor. However, city of Ukiah representatives told her they needed both a restaurant and a wine bar, and they encouraged her to expand her project. Since it opened in March, Ukiah residents and visitors have been able to enjoy lunch and dinner served from Uncorked's kitchen as well as a fantastic selection of both wine and beer.

 

In the months leading up to Uncorked opening, Barnett considered several options to raise the funds she needed. She had raised quite a bit of money on her own, but needed a business loan to get her seed money "over the hump." Traditional banking institutions were unable to provide the funding she needed, although she was able to secure part of the funding through a local credit union.

 

For the remaining amount, Barnett approached the Economic Development & Financing Corporation in Mendocino County, which encouraged her to contact the Arcata Economic Development Corporation. The organizations partnered on this project to offer the loan that she needed to get Uncorked going.

 

"They all came together to get me funded," she said. "I couldn't have done it without them."

 

Barnett said that the staff at AEDC was very responsive and helped her through every step of the process, including the complicated loan preparation and paperwork. Two members of AEDC staff even drove down to try out the new restaurant after it opened.

 

"Everybody's been extremely supportive," Barnett said.

 

 

 

  

Lemonade Day Results 2013

 

  

Figures are based on a total of 80 lemonade stands in Humboldt. 45 Stands reported their business results. 

 

  • The average stand was open for 4 hours.
  • An average of 1.5 kids reported working/stand or 120 kids total.
  • The average number of cups sold was 64/stand for 5,141 total.
  • The average price was $1.27. Prices ranged for .50 to $4.00/glass.
  • The gross revenue reported an average of $147/stand or $11,760 for 80 stands.
  • Profit/per stand was reported as $98/stand or $7,840 for 80 stands
  • 77% of the participants met their goals.
  • 87% of the participants reported completing some or all of the activities in the Lemonade Day workbook.
  • 90% of the participants reported paying their investor back for their start-up costs.
  • 78% of the participants reported donating to charity, an average of $38/stand or $2371 total.

Lemonade Day photos by Brandi Easter Photography 

 

 

Planning will begin for Lemonade Day 2014 in September. To become a volunteer, contact Susan Seaman at (707) 822-4616 or email [email protected].  For more information about Lemonade day, visit www.humboldt.lemonadeday.org.

 

 

Commercial Property 504 rates are climbing, but they're still low

           

SBA Logo

 

SBA 504 rates are currently: 5.23%  
  • Low down payment for borrowers
  • Competitive fixed interest rate
  • Long Term loan
  • From $50,000 to $5 million for commercial real estate, construction and equipment acquisition.
Many commercial loans available on the market require a sizeable percentage down before the loan will be granted, and this can be an obstacle for many business owners looking to improve their facilities. The SBA 504 Loan offers a solution for that -- you can borrow up to 90% of your financing needs at a fixed rate, so only a minimum of 10% down is required.
 
The remainder is split between the SBA loan (40%) and a bank loan (50%), and the Arcata Economic Development Corporation will work with your bank to submit your loan application. Loan amounts range from $50,000 to $5 million, and some restrictions apply.

The U.S. Small Business Administration now allows business owners to use the SBA 504 Loan Program to refinance existing debt with new loan proceeds.  There are some restrictions, but this is an excellent program and there are advantages to using an SBA 504 loan in combination with conventional financing.  Please contact me for additional information & qualification requirements!

 

 

Kelli Sterling

Loan Manager

(707) 822-4616  Ext 14

[email protected]

Oberon Grill is opened for business after accident

           

K&M Glass On Tuesday morning an SUV crashed into the Oberon Grill at 516 Second Street, Eureka, causing enough damage that it required the restaurant to close for a very short time.

 

Within hours of the accident, K&M Glass, who has worked with owners Roy and Susan Kohl for over 30 years at their various businesses, had secured the Oberon Grill. Within 24 hours, the windows were replaced.  

 

The historic front doors, were taken to be reworked by Finigan and Thonson Woodworking, who also fashioned a temporary door that same day. Lisa Finigan, designer, created the Kohl's first glass display over 30 years ago.

 

The Kohls are grateful for the many neighbors, friends, business people, the City of Eureka and Eureka Mainstreet, who have offered assistance and emotional support. 

 

In these tough economic times, even being closed for a few days, truly effects the business negatively. Please join the community with a Warm Welcome and visit The Oberon in the near future!

 

Local Resources for 

Community Businesses

           

The North Coast loves its local businesses, and there are many who go out of their way to shop local. Your business can take advantage of that local angle by getting involved in the community and reaching out to customers to let them know you're a locally grown enterprise.

  

There are several community resources available to local businesses:

 

AEDC: We work with businesses in Humboldt, Del Norte, Lake, Mendocino, Siskiyou and Trinity counties to get them the funding they need to succeed. Our staff helps many start ups get off the ground, as well as experienced entrepreneurs that are looking to expand or purchase a business.  

 

Chambers of Commerce: Almost every community has a chamber of commerce that your business can join. Not only do they help you connect with other local business owners, it also gives your business additional credibility if you are a member. Chamber offices are also stopping points for many tourists, and its staff will only recommend they visit member businesses. Depending on the chamber, other resources may also be available. 

 

Main Street Organizations: The primary goal of Main Street organizations is to support local businesses and attract people to the core of the city with large events such as holiday events and annual festivals. Many of the Arts Alive programs are managed by local Main Street groups as well. 

 

Humboldt Made: If your business is in Humboldt County and you produce a consumer product, the Humboldt Made event is for you. Featuring a wide array of Humboldt products, the annual event is only one part of Humboldt Made. This organization is on its way to becoming a nonprofit; it offers publicity opportunities and informational events for local businesses.

 

North Coast SBDC in Humboldt and Del Norte; Jefferson Economic Development Institute in Siskiyou and the West Company in Mendocino are all available to help businesses with the technical assistance they may need.  

 

Community Events: Support your favorite nonprofit or baseball team and you become more than a sponsor -- you become a part of the community. It will get your name out there and people will appreciate that you give back to the community.  You can also set up booths at local festivals to both support the events and reach out directly to their attendees.

 

If you're a local business, make sure your customers and your community know it, and take advantage of the local resources made available to you.

                                                                                                    
color map
 
 
 

We are proud of the variety of businesses we've served over the years at AEDC. We would love to include you in our family of success stories. 

 

Visit www.aedc1.org to get more information about AEDC loans, events and programs. 

 


Ross Welch
Executive Director
(707) 822-4616 ext. 11