The Growth Loan: Where Are They Now?
In 2015, we launched a new access to capital product called The Growth Loan aimed at funding small businesses that cannot access capital through traditional underwriting methods. The Growth Loan provides up to $35,000 in funding and is character-based, not credit-based. Over the last four years, we have been able to fund 31 small businesses in the Louisville area and have seen how a little bit of capital can go a long way towards catalyzing the growth for our entrepreneurs.
Small businesses often find it difficult to access affordable capital with reasonable terms. These businesses are much less likely to receive a loan approval than their larger counterparts through traditional banking methods, and as a result, entrepreneurs are turning to other financial options to find capital. We believe that small business owners are the unsung heroes in communities, therefore, they deserve the support and capital needed to help them flourish.
Every day, these hard-working entrepreneurs struggle to identify adequate sources of capital to grow their business. Establishing confidence in these small business owners is an important piece of the equation. The Growth Loan use is flexible including working capital, website improvements, and more. The Growth Loan is an accessible loan product for growing small businesses without the headaches and requirements that are normally associated with the hunt for financing.
In 2017, we told the story of some of our Growth Loan recipients as they began their journey and partnership with Access Ventures. The four businesses featured in the video below were Farm to Fork, Louisville Cream, Moelicious BBQ and Victory Hemp. One of the biggest barriers to starting and growing a small business is accessing capital and we aimed to remove this barrier in hopes of positively impacting the trajectory of their businesses.
We recently caught up with two of the small business owners from this video: Sherry Hurley of Farm to Fork and Chad Rosen of Victory Hemp, as well as fellow Growth Loan recipient Jeremiah Chapman of Fresh Fry, to ask them about small business impact on local communities, their experience with The Growth Loan, and updates on their business growth. Here is what they had to say.
Farm To Fork
How did the Growth Loan process shape how your business developed? Beyond capital, what are significant milestones you’ve reached over that past few years?
Until I received The Growth Loan, I was managing all aspects of the business-sales, purchasing, recipe and menu development, food production, event management, finances, etc. The Growth Loan allowed me to hire a Kitchen Manager and an Operations Manager. I was also able to promote my Catering Assistant to Catering Manager. Between myself, the Catering Manager, and the Operations Manager (who also had a background in sales), we were able to double catering sales in one year.
The increased volume required more space and staff, which led us to make the move to the Portland neighborhood and building a catering production kitchen. The space also offered a storefront, which we opened as a cafe in December 2018. We have been nominated for a GLI Small Business Award and we celebrated our 10 year anniversary in 2018.
What did you look like as a business owner/person when you applied for the Growth Loan? How does that compare to the business owner/person you are today?
When I applied for The Growth Loan, I wasn’t very confident as a business owner and was mainly working “ in the business” rather than “on the business”. I was burned out from having to do everything and had forgotten most of why I had started my business. Having to complete the Business Model Canvas helped me remember why I started my business, to really reflect on where my business was currently, and the potential for my business in the future. Today I value working “on the business” as much if not more than working “in the business”. I am much more metric and goal-oriented. Receiving the Growth Loan was important validation that my business was seen as making a valued contribution to my community.
If the Growth Loan were not an available product, what would your business look like today?
I do not think Farm to Fork would still be in business today.
Have you accessed additional capital since your GL allocation? How did your allocation of the Growth Loan change your pathway to additional capital?
I received a $75,000 loan from Metro Louisville to renovate a building in the Portland neighborhood to use as our catering kitchen and a cafe, and I received a $35,000 loan from US Bank to purchase equipment for the kitchen and cafe.
How do you see small businesses impact your community/local economy? In general and your business specifically.
Small businesses often create jobs that are more meaningful and offer employment opportunities to people who may not be employable by larger corporations. They promote local economies, keeping money closer to home which is more likely to benefit local neighborhoods and communities. Additionally, small businesses are more likely to reflect the culture and needs of their neighborhoods. Of our 9 employees, we have provided employment to 3 people from the Portland neighborhood. Farm to Fork is giving people who have never been to Portland a reason to visit.
Looking back, what advice would you give yourself 5 years ago?
Ask for help, work with a coach, have other business owners you can talk with about issues so you don’t feel so alone and isolated. Give as much attention to the numbers and business workings as you do to the vision and creativity aspects. Develop best practices for hiring, training and retaining the best employees. Trust your gut and get comfortable saying “No”. Stop comparing your business and yourself to other businesses and business owners. Finally, give yourself permission to do things differently than they have always been done.
What inspires you to continue to grow/operate your business? What gets you up and going every morning?
My team, the Portland community, my clients, the farmers we support, and a passion for food and hospitality.
Victory Hemp
How did the Growth Loan process shape how your business developed? Beyond capital, what are significant milestones you’ve reached over that past few years?
The Growth Loan was really a stepping stone. It allowed us to buy a few key pieces of equipment which got us headed in the right direction allowing us to begin building the domestic supply chain, delivering on products that customers wanted, and evaluating where we needed to fill in gaps in preparation to take the next steps in our growth.
What did you look like as a business owner/person when you applied for the Growth Loan? How does that compare to the business owner/person you are today?
I think I have a bit more financial literacy around the day to day operations of running a business and forecasting for growth. In the time I’ve been working in this position I’ve developed a bank of knowledge from good and bad experiences and outcomes that I pull on to direct situations I’m faced with now. Much of the navigation through the obstacles of startup is owed to having been able to attract a team of domain experts with experience.
Have you accessed additional capital since your Growth Loan allocation? How did your allocation of the Growth Loan change your pathway to additional capital?
The Growth Loan allowed us to close the gap towards purchasing equipment, and bring manufacturing in house. With that equipment we were able to go from conceptual to concise and that de-risked investment for Angels and strategics as we were able to make accurate forecasts and plan for the next stage of growth.
How do you see small businesses impact your community/local economy? In general and your business specifically.
Victory starts by paying a living wage as defined by the MIT Calculator criteria of “2 ADULTS(BOTH WORKING) WITH 3 CHILDREN.” It’s basic and necessary to take care of your team as they take care of your customers, because it’s our customers who take care of the ownership who then in turn takes care of management, if that seems cyclical it is. One broken link though and the circle won’t be strong. Beyond our own four walls we’re having an impact on our supply chain by paying attractive prices to produce our grain. In most cases our farmers are earning 50% more than they would from their corn and beans, and that’s in large part because they don’t have the cost structure with chemicals needed to grow their other row crops. I could go on, it’s the part of the business that probably excites me most.
Looking back, what advice would you give yourself 5 years ago?
Hire specialized consultants, and become an expert on whatever sliver of knowledge they are applying helping you solve your very specific problem. Spend as much time and money as necessary before you move off the blocks. Talk to people about your idea and listen. It’s all about what your customer wants, not what you think they need.
What do most people not know about growing a small business? Did you have preconceived assumptions that were challenged?
“I can’t speak for what people know or don’t, but I know that successful entrepreneurs are the ones that go from one failure to the next without any loss of enthusiasm,” Winston Churchill said that and it’s on the wall in the lobby of our office building so I’m reminded everyday. In our space we’re surrounded by assumptions because hemp was illegal in the US for the past 80 years. We are constantly challenged to run all of what we think we know to ground, that’s how we’ve been able to build a solid foundation from which we’ve been growing.
Have you taken on new team members? If so, how many?
We’re at 10 now. A couple of PT consultants as well. The business is evolving through different stages of growth rapidly and so consultants are a responsible way for us to grow so that we don’t outpace the skill set of a team that we intend to grow with.
What inspires you to continue to grow/operate your business? What gets you up and going every morning?
Coffee gets me up. Supplanting 180 million acres of GMO Corn and Soy that use fossil fuels and chemicals to grow with HEMP—a row crop that sequesters carbon, and remediates soil—inspires me.
Fresh Fry
How did the Growth Loan process shape how your business developed? Beyond capital, what are significant milestones you’ve reached over that past few years?
The Growth Loan was the capital that allowed FreshFry to navigate our inflection point from a locally distributed product to a national footprint. This has allowed us to scale our production over 10X and grow our customer base significantly.
What did you look like as a business owner/person when you applied for the Growth Loan? How does that compare to the business owner/person you are today?
I feel as if we are the same people, just with more information on how to run our business. A few more scars, a lot more wins, and a deeper appreciation for Access Ventures and The Growth Loan.
Have you accessed additional capital since your GL allocation? How did your allocation of the Growth Loan change your pathway to additional capital?
Yes, we have all equity investment. The pathway for additional capital was used for sales growth, which would not have been possible before the growth loan.
How do you see small businesses impact your community/local economy? In general and your business specifically.
Small business allows a community to thrive without the loss of identity. It gives the community a way to express their delight with a business in a meaningful way. For FreshFry, our business impacts the way startups in our region can scale.
What do most people not know about growing a small business? Did you have preconceived assumptions that were challenged?
Ideas are transferable, execution is not. Sometimes, access to capital is a beautiful way of getting back to execution.
Have you taken on new team members? If so, how many?
We have taken on many interns, contractors, and another full-time person.
What inspires you to continue to grow/operate your business? What gets you up and going every morning?
The sheer fact that our business and physical product came from an idea, and is now impacting the lives of thousands daily, it is an exhilarating and sobering feeling. My alarm clock gets me out of bed every morning, our dream of building FreshFry keeps me out of it longer.
We want to make it easier for entrepreneurs to access the capital they need to create more vibrant communities. If you are looking for capital for your small business or know someone else who is then learn more about how The Growth Loan or one of other access to capital solutions might be a good fit for you.
