Northland Notes

Business Services News

Recently Closed Loans

The Northland Foundation closed on 5 loans totaling $731,500 during the last quarter to support the expansion of Northeast Minnesota businesses. They are:

To learn more about Business Services and loan tools available, please email our Business Services Director, Michael Colclough.

Client story: In Harmony Wellness Center opens in Spirit Valley neighborhood

After 18 years as a licensed physical therapist assistant in Minnesota and Wisconsin, Debbie Merrick wanted to reach clients in a different, more holistic setting than the more clinical sites where she had previously worked.

In 2019, she launched In Harmony Reiki and Inner Wellness and in 2021 opened In Harmony Wellness Center at 5628 Grand Avenue in the West Duluth neighborhood’s thriving business district. The studio is located in a historical building with original hardwood floors and exposed brick.

Her years in physical therapy along with along with Master Level Reiki and Life Coach Certifications have given Merrick a unique skill set to serve a diverse population, meeting them where they are to help guide them to strategies and techniques for stress reduction and healthy outlooks for physical, mental, and spiritual wellness.

While she had established her service business, Merrick searched out technical assistance to help her move her enterprise to the next level. She worked closely with Vicki Hagberg of the Northland Small Business Development Center and, when the time came for financing assistance, Merrick applied to the Northland Foundation for a business loan to get her studio up and running.

In the stress and uncertainty of a pandemic-impacted world, In Harmony has a wide variety of wellness options for all ages and backgrounds. These include yoga, reiki energy healing, life coaching, workshops, and much more. Individuals and groups alike can take advantage of regular services, as well as special events. Among workshops and individual sessions on tap are instruction in posture, body mechanics, stretching, and safe functional movement specific to seasonal activity like snow shoveling — something northern Minnesotans can definitely use at this time of year.

“Vicki helped me with my basic business plan and, once she had a more complete picture, she helped me seek out financing. I ended up connecting with the Northland Foundation. It was a very smooth process.”

Debbie Merrick, owner

“Opening a new location in the middle of a pandemic has been challenging, but the people who connect with us are happy to have found us and are excited about using other services, too,” explains Merrick, who continues to build what is offered at In Harmony, such as recently added quigong classes which is a Chinese practice of guided movement, breathing, and exercise. She also opens the studio to community members to drop in for coffee and conversation on Saturday mornings, as well as rents out the space to others.

This motivation to help people live their best life comes from Merrick’s own personal journey and wanting to offer clients a more individualized, accessible, and simpler process to achieve their wellness goals.

Debbie Merrick, owner of In Harmony

Recently Closed Loans

The Northland Foundation closed on loans totaling $228,500 during the last quarter, supporting the expansion of three businesses in the region. They are:

To learn more about Business Services and loan tools available, please email our Business Services Director, Michael Colclough.

Borrower feature: financing collaboration supports new ownership and expansion at Cloquet business

With 40 beverage flavors plus a wide assortment of breakfast and lunch fare and sweet bakery treats, “variety” is a perfect word to characterize the mouthwatering menu at Bearaboo Coffee Escape in Cloquet, MN.

It is also a fitting descriptor for the financial package that helped Natalie Swanson recently finalize her purchase of Bearaboo. A variety of partners contributed to the deal: Swanson with equity, and Frandsen Bank & Trust, the City of Cloquet, and the Northland Foundation with loans.

After the previous owner passed away unexpectedly in 2019, Swanson began working at Bearaboo Coffee to help his widow manage the business. Although Natalie had a highly successful track record running home-based, direct sales businesses, owning a bricks-and-mortar shop was not necessarily in her sites.

“In the beginning, it wasn’t on my radar to buy Bearaboo. However, our family has always talked about how much fun it would be to own a coffee shop, because my husband and I are big fans,” Swanson explained.

When the late owner’s wife expressed the desire to get out of the business, and quickly, Natalie took the opportunity. Originally it was structured as a contract for deed, and in early 2021 both parties opted to move forward with permanent financing.

Frandsen and the City had already approved loans for purchase of the building and some improvements, with an SBA-guaranteed loan anticipated to cover the balance of the acquisition costs. Unfortunately, due to timing issues the SBA guaranty requirements could not be met. The bank referred Swanson to the Northland Foundation, and the last piece of the financing puzzle was put in place.

Since then, Swanson has added a new dining room, larger kitchen, and much-needed storage by annexing square footage from a former self-serve car wash next door. Future projects on Swanson’s wish list include enlarging the parking lot, as well.

Today, Bearaboo is buzzing with caffeine and satisfied customers. The 22 part-time staff serve breakfast, lunch, and baked goods while keeping the coffee flowing until 6 p.m. daily. Find business hours and more details on Bearaboo’s Facebook page.

Bearaboo Coffee owners
Bearaboo Coffee interior

LAND ACKNOWLEDGEMENT

From traditional, ancestral & contemporary lands of Ojibwe, Dakota, Northern Cheyenne & other Native people. See a more detailed acknowledgement of this land and its history.

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