November Economic Development News
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From Our Executive Director
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Just over a month ago, we mourned the damage and loss sustained by so many in the aftermath of the Northern California fires but I also noted with some optimism that sometimes disaster brings out the best in us. There is no better illustration of that kindness and generosity than this month's story of Harriet Watson's 3rd grade class. Young Lemonade Day entrepreneur Bryan Coleman and his Cutten Elementary School classmates went above and beyond in their desire to help other kids who had suffered great loss in the fires. Their efforts can be an inspiration to everyone.
This is just one reminder to be thankful for what we have this holiday season. It's a chance to recognize our blessings and be aware of those struggling with less. Whenever possible, I hope we can all remember to follow the example set by Bryan and his classmates.
Ross
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AEDC supports Wolf Dawg
After owning a day care and clothing store, going back to the workforce as an employee was challenging for Amy Wolfe. “It took about 6 months before I realized my next step was to keep doing what I've always loved…. And owning a restaurant was the natural progression for me. I began waitressing at 16 years old and being a food server has always been very gratifying.”
Wolfe is the sole owner of the new Wolf Dawg Eatery in Arcata (she is co-owner of Wolf Dawg in Eureka). The second store opened about 2 months ago and continues the Eureka Dawg’s tradition of offering crazy style hot dawgs, wraps, salads, and milkshakes. “It was my third business, but the first one that I did simply because it was my passion,” Wolfe said.
Wolf was born and raised in Humboldt County. After graduating from McKinleyville High in 1999 she lived in the Bay Area for about 6 years, before returning to the area to buy a home, raise her children, and establish a career in her home town. She secured an AEDC loan to open the second restaurant.
“The biggest challenge I have faced so far is the time it takes to really get your foot in the door of steady patrons. I've relied heavily on word of mouth and strive to create an environment where people want to be. The greatest reward is when I create personal relationships with my patrons and they return time and again. When those connections are made, it's priceless. I absolutely LOVE being a business owner, and following my instincts as well as my passion.”
Enjoy Wolfe Dawgs and other family fare at 1731 G Street,
Northtown Arcata
Monday thru Friday 11:30-8
Saturday 12:30-6:30
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AEDC closed out FY2017 with another increase in assets of over $20,000 and another finding free audit. Our bad debt expense line item ended the year with a credit balance again. This means that our borrowers risk ratings are improving and that newly booked loans are healthy.
AEDC keeps a full toolbox of financing opportunities, so we can meet the varying needs of our clients. AEDC provides loans of all sizes, from $5,000 microloans, to business loans up to $250,000, to loans for commercial property loans from the SBA 504 program up to $5 million.
In FY 17, AEDC provided funding to 13 businesses, compared to 12 in FY16. This could be surprising since the $2.4 million loaned is a decrease from last year. The strength of AEDC is that we can meet the needs of business owners where they are. This year, we had fewer large loans, but small loans made an important impact. Three small loans for under $50,000 through our SBA microloan program demonstrate that. One loan helped somebody purchase an existing business, another allowed a business to expand to a second location, and the third loan, for only $10,000, helped one business through a financial hump that meant the difference between surviving through a rough patch or closing their doors altogether. On the other side of the spectrum, with four loans totaling over $1.2M, the 504 allows business owners to purchase commercial property and remains one of our stronger performing products. AEDC will see fluctuation in lending trends from year to year. It is a reminder that businesses have different needs, and AEDC has the flexibility of options to meet those needs when they arise.
If you would like a copy of AEDC's annual report, you can request one
here
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Lemon-Aid for Fire Victims
When the fires hit Northern California, Harriet Watson’s 3
rd
grade class at Cutten Elementary was eager to help. But for these kids, making activity books, filled with
mazes, happy stories, word searches, riddles and more
for
kids who were in shelters after their homes were threatened or lost
wasn’t enough.
“We were trying to think of what to do,” explained 8-year-old
Brian Coleman. “Mr. Richard’s class had a bake sale, which
made me think we could do a lemonade stand.” Bryan was
a five-year veteran of Humboldt Lemonade Day and the young entrepreneur knew the stands could be money makers. Amy Coleman, Bryan’s mom, volunteered to help.
“Bryan suggested we call the stand LemonAID,” Watson said, “And the kids made signs and asked their family to bring baked goods.” Cutten Murphy’s provided space and on October 28, five out of 20 third graders showed up in between soccer games and other commitments to help. “We tried to practice making change with the lemonade, but customers were just donating their change, so we decided to just ask for donations for the lemonade and baked goods,” Watson added.
The class raised $860.82, and Watson’s husband Brian Lovell rounded up their earnings to give the third graders some math practice. A Rotarian then generously doubled that figure, bringing the class’s total contribution to $1,800. This was given to the 5130 Rotary Fire Fund, which has zero overhead costs and distributes funds directly to community members.
Before the sale, Watson asked the kids what they would say if a customer asked why they were doing this. Their answers: “We care.” “We want to help.” “People lost everything, things they need, like food, shelter, water, clothes, schools, and more.” “We have empathy.” “We can give help now, because we don’t need help. If we do need help someday, someone might help us.” And lastly: “We are giving community members an opportunity to also help out.” According to Watson, throughout the sale the kids never asked for free treats, although some made donations in order to sample them. Customers also made generous donations without taking much—and the kids were able to do another kindness by donating the leftover goodies to the Eureka Fire Stations.
“The best part of this is that the kids were the ones that expressed an interest in helping,” Amy Coleman observed. “This was not an assignment but instead stemmed from the kids desire to help others.”
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Photo above: Bryan Coleman and Claire Gast make board games for kids in the fire shelters.
To the left: Students from Cutten Elementary: L-R:
Silas Darlington, Garren Gundersen, Bella Gast, and Natalie Conrad
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SBA 504 Current Rate:
4.63%
- 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.
For more information, call Kelli Sterling, Loan Manager: 707-798-6132 ext. 212 or email kellis@aedc1.org.
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Arcata Economic Development Corporation
Fax: (707) 798-6130
Tel: (707) 798-6132
707 K Street, Eureka, CA 95501
Newsletter produced by
Lynette Mullen, Projects Delivered
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