An Expanding Dairy Industry in Southwest Minnesota
So, where do you think the cheese on a McDonald’s cheeseburger comes from?
Would you guess southwest Minnesota? If yes, you’re right!
A successful company in Litchfield (a community in our southwest Minnesota region with a population of 6,555) invested $18 million in a 2008 expansion. Today, another $32 million expansion is being constructed. This awesome company, First District Association dairy co-op, produces and ships 144 million pounds of cheese annually. The current expansion will boost processing by 25-30 percent, up to 5 million pounds of milk a day.
Read more about First District Association in Litchfield.
Join me in thanking all members of First District Association (www.firstdistrict.com) who are making an investment in our rural area, creating jobs and adding to the wealth of our rich agricultural region.
A History of Success
Early SWIF Loan Client Palm Industries Continues Making an Impact
Harlan and Jerri Palm, Grove City
This past year I met two of our “BEST” in southwest Minnesota – Harlan and Jerri Palm of Grove City. It was instant connection as I heard their story of what they all went through to build multiple successful businesses that in the end, brought 500 jobs to our region. In our recent 25th Anniversary edition of our Connect newsletter, we highlighted their story as one of our first loans back in 1988. We can’t thank them enough for their longstanding contributions to our region’s economy.
Take a moment to read their story.
Please comment here and join me to say “thanks” to Harlan and Jerri for being an inspiration to entrepreneurs in southwest Minnesota!
USDA Rural Development Awards $605,000 Loan/Grant to Southwest Initiative Foundation
Funds will assist rural microentrepreneurs, provide technical assistance
USDA Rural Development State Director Colleen Landkamer visited Hutchinson Thursday, March 17, to award the Southwest Initiative Foundation a $500,000 loan and a $105,000 grant.
The funds come from Rural Development’s Rural Microentrepreneur Assistance Program (RMAP) and will assist rural entrepreneurs. It is the first RMAP awarded in Minnesota.
“These funds will help small, start-up businesses access needed capital,” Landkamer said. “Sometimes a small loan is all an entrepreneur needs to start a business, produce a product, and win the future. The Southwest Initiative Foundation has a strong track record in assisting rural businesses and I am looking forward to watching the positive results develop from this funding.”
Under the RMAP program, funds are provided to an intermediary who re-lends the dollars to rural entrepreneurs and microenterprises. In this case, the Southwest Initiative Foundation will use the $500,000 loan for re-lending purposes and the $105,000 grant to provide technical assistance and training to rural entrepreneurs in the region.
“Our region has a very strong entrepreneurial spirit,” said Southwest Initiative Foundation President/CEO Sherry Ristau. “When combined with the right resources, including technical assistance at various stages of their business ventures, we’ve seen entrepreneurs accomplish great things for our communities, region and economy.”
Contact Southwest Initiative Foundation at 800-594-9480 or loans@swifoundation.org to inquire about business loan opportunities. To learn more about Rural Development programs in the areas of business, housing and infrastructure, contact the Cambridge area office at (763) 689-3354, ext. 4.
Photo caption: Southwest Initiative Foundation received the first RMAP awarded in the state to support southwest Minnesota microentrepreneurs. Pictured from left are foundation staff Jackie Turner-Lovsness, Greg Jodzio, Berny Berger, Kurt Thompson, USDA Rural Development State Director Colleen Landkamer, Karen Larson and foundation President/CEO Sherry Ristau.
Lyndwood Tex-Mex Bar & Grill to Host Grand Opening Feb. 11 and 12
Lynd business benefits from Southwest Initiative Foundation Microenterprise Loan Program
Vicente Hernandez recently received loan assistance from the Southwest Initiative Foundation’s (SWIF) Microenterprise Loan Program for the start up of the Lyndwood Tex-Mex Bar & Grill in Lynd. Vicente reopened the Bar and Lynd ballroom complex in October. In addition, he now offers a full restaurant menu, including appetizers, steaks, burgers and Mexican specialties including enchiladas, flautas, fajitas and chimichangas.
The Lyndwood will also feature Tex-Mex entertainment, providing a dance theme venue with live music and DJ entertainment. The Lyndwood Tex-Mex Bar & Grill will be celebrating its Grand Opening Feb. 11 and 12 with food and drink specials. Hours for the business are Wednesdays through Sundays, 4 p.m. to 1 a.m. Vicente can be reached at 507-865-4000 to inquire about upcoming entertainment, or to book events in the ballroom.
Hernandez has been employed most recently as a shift manager for five years at Logic, Inc., in Montevideo. He has always been interested in having a restaurant/entertainment venue, and worked as a cook for four years in a restaurant. Hernandez felt the opportunity was right when the Lyndwood came up for sale this year and decided to purchase the business.
“SWIF is pleased to assist Mr. Hernandez with opening the restaurant in Lynd, which has been a long-time asset to the community and surrounding area,” said SWIF Program Officer Kurt Thompson.
Together with primary financing from Klein Bank of Montevideo, proceeds from the SWIF loan will be used to purchase the equipment for the start up of the Lyndwood. SWIF’s Microenterprise Loan Program offers loans of up to $35,000 for starting or expanding for-profit small businesses located within the 18 counties of southwest Minnesota. This program also now serves Wright, Carver and southern Stearns counties.
In addition to financing, SWIF provides free technical assistance to all clients who have received a loan through the Microenterprise Program for the life of the loan. SWIF staff and business consultants provide one-to-one business planning, accounting, marketing and other training opportunities that will help entrepreneurs succeed in their venture. SWIF’s Microenterprise Loan Program receives funding assistance from the U.S. Small Business Administration and U.S. Department of Agriculture.
The Southwest Initiative Foundation is a regional community foundation dedicated to advancing southwest Minnesota through leadership, relationship building, program development and philanthropy. The Foundation has contributed more than $53 million through its grant and loan programs in southwest Minnesota. It has also helped more than 510 businesses start or expand through its business finance programs, which have created or retained more than 7,900 jobs. The Southwest Initiative Foundation is an equal opportunity provider. To learn more, visit www.swifoundation.org.
Entrepreneur Beware!
Ok, we’ve all read the signs ‘buyer beware’… but entrepreneur beware? The reality is that people in business are subject to all kinds of fraud…the opportunity to be taken as an entrepreneur runs the table from shoplifting to the high-stakes con artist who is after serious amounts of your money. And in today’s fast-paced, hyper-active electronic world, the stakes are even higher.
In the last year, two businesses that I work with have been very close to losing a large amount of money and the would-be perpetrators used almost the exact same scheme…both used Tele-relay services to communicate. Both used hardship in some way to tug at the victim’s desire to do good. Both tried using stolen credit cards, and in one case, succeeded. Both involved large orders for merchandise. In the latest case, Trevor Suckow, owner of the Friendship Café in Clarkfield, MN started asking questions about how and why…You can read his story as published last week in the Granite Falls Advocate by following the attached link.
Here are a couple of quick questions you should always ask yourself when that order that appears to be ‘too good to be true’ comes in…
- Why are they buying from us?
- Does the address on the credit card match the address to where you are delivering the product? This is important, because if the address is the same, and the card has been stolen, the credit card issuer will not leave you stuck with the bill.
- Can you verify the order with someone locally?
Follow Trevor’s advice, if it sounds too good to be true, it probably is…beware – danger is lurking!
Kurt Thompson is a Program Officer at the Southwest Initiative Foundation where he leads the Microloan and Entrepreneurship Programs. He also serves as business coach and mentor to small businesses by offering one-on-one technical assistance to loan clients.
photo credit: TheTruthAbout…
