Among SWIF’s managed funds is $11 million dedicated to supporting regional businesses through a revolving loan program. This summer a portion of that was lent to a Mankato businessman to purchase Sailor Plastics in Adrian from former owners Terry and Brenda Sailor. The funds originated from an appropriation of the Minnesota Legislature to SWIF.
“The company is really our major industrial employer,” City of Adrian Administrator Bruce Heitkamp said of Sailor Plastics, adding that the company is one of Adrian’s top five employers. “It is very important to us.”
Lorin Krueger operated a public company in Mankato and retired from that position in 2008. At that point he reflected on options and decided to look for another business to acquire. He wanted the business owner to stay involved during ownership transition, the business to be profitable, and whatever product the business made to have life cycle remaining. He was also looking for something within 50 miles of Mankato. Through some networking he became aware of the Sailor Plastics opportunity in October 2014.
Terry Sailor said he and Brenda had been working for a few years on making the company ready for sale. They were also trying to keep the business in place in Adrian as opposed to having it move elsewhere if purchased. One potential business suitor was interested but wanted to move the operation to the metro area.
“That wasn’t exactly what we had in mind,” Terry said.
After meeting with the Sailor family and researching the City of Adrian, Lorin became comfortable with purchasing Sailor Plastics, which manufactures plastic honey bear and other plastic bottling containers.
“The community and the people in the community were willing to invest in themselves,” Lorin said, adding that creative financing options play a significant role in overcoming lending obstacles in rural communities.
“Gap financers can step in with confidence and provide those lending resources,” he said.
At SWIF, business finance loans complement private sector lending options.
“It’s a gap loan fund, which means we complement private sector lenders – we don’t compete,” said SWIF Business Finance Director Amy Woitalewicz of SWIF’s lending program.
Business finance loans through SWIF generally fall between $50,000 and $400,000, with lenders providing a 50 percent match. When loan applications are considered, we look at how critical or necessary a business is to our region, and if we can help make a business endeavor more viable, Amy said.
Options for business loan applications include working capital, machinery or equipment purchases, inventory development, and real estate purchases.
“It’s in our region’s best interest to grow our business base,” Amy said. “We try to help our region grow.”
Find more information about our business financing options.
