Good-bye and thanks to Alex Bastien |
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Loan Portfolio Manager, Alex Bastien, has accepted a position as a commercial lender with Members Cooperative Credit Union. His last day with Northland Foundation was May 20. All the best to Al!
"Alex has been, and will continue to be, a great ally for businesses and financing partners in the region," said Tony Sertich. "We look forward to staying in touch with Al and the potential to partner on lending projects in the future."
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Taking the regional pulse as the economy opens up |
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As summer 2021 approaches, restrictions put into place during the pandemic are being lifted. Yet another "new normal" is emerging across the region, state, and nation.
Positive Developments
- The economy as a whole appears strong(er). There is a great deal of activity and growth.
- Numerous existing businesses are changing hands, and a large number of new start-ups have opened or are in the planning stages.
- The federal government has unrolled some unique lending options during the last year, opening up new opportunities for business borrowers.
- The regional economy is expanding in both traditional and nontraditional ways.
Current Challenges
- Labor shortages are being experienced across every sector. The workforce crunch is stifling some level of growth.
- Materials and labor costs are high. Some building projects have been put on hold due to the cost of lumber, etc.
- There are lingering supply chain issues.
- Disruption to consumer behaviors is not changing quickly e.g. online in place of brick-and-mortar shopping, or takeout/delivery versus dining in. Businesses that have not adapted will continue to feel the effects.
Access to Capital
- Tapping into federally funded stimulus money, for example Restaurant Revitalization Fund grants, is still a strong focus.
- The banking landscape is shifting. New players are moving into the market, consolidations are happening, and community banks are creating wider regional footprints.
- Competition among lenders is fierce. Lenders are making up reduced interest income by the sheer volume of deals.
- Barriers persist to getting business capital into the hands of Indigenous, Black, Asian, Latinx, and other entrepreneurs of color, as well as to individuals in very rural and lower-income communities. A number of organizations are working on solutions to this persistent problem, which limits growth and prosperity in the region.
"The pandemic has created many challenges for our regional economy, but we are bullish on the future. The silver lining we have seen is the resiliency of our small business owners, from restaurants pivoting to online ordering, delivery, and curbside pickup to many more individuals deciding to take the plunge and start their own businesses," stated Mike Colclough.
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Northland Foundation staff members are continuing to work remotely at this time. Email is the best way to reach us.
Business Finance Director
202 West Superior St., Suite 610, Duluth, MN 55802
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We work with the people, businesses, and communities of Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis Counties and the Native Nations within our geographic service area: Bois Forte Band of Chippewa, Fond du Lac Band of Lake Superior Chippewa, Grand Portage Band of Lake Superior Chippewa, Leech Lake Band of Ojibwe, and Mille Lacs Band of Ojibwe.
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