Sprout CARES Act Loan Impact

Arlene Jones, Executive Director of Sprout, shares the impacts the CARES Act funding had on their organization during the pandemic. To learn more about loan programs through R5DC's non-profit lending arm, visit northcentraleda.org

Transcript

Angela Anderson (00:02.133)
All right, today I have Arlene Jones with me and she is the Executive Director of Scrout. And we want to talk a little bit about our loan programs that we offer. And so today Arlene is going to be sharing a little bit about her story with that. So good morning, Arlene, how are you?

Arlene Jones (00:20.303)
Good morning, Angela.

Angela Anderson (00:22.697)
The first question I'd like to ask you is if you can just share with us the story of your business, the organization, and the dream that led you to seek funding from NCDA.

Arlene Jones (00:33.582)
So Sprout is a 501c3 federally recognized food hub in the local foods terms, which means actually that we just specialize in procuring locally grown food from the five counties, central Minnesota region and distributing that to consumers and to institutional accounts, such as restaurants, school districts, et cetera.

We've been doing this work since about 2010 in large partnership with Region 5 and in CEDA in building out that food hub in Little Falls, which I am happy to say is one of two brick and mortar food hubs located in Minnesota. During the pandemic, it was very difficult to provide outward-facing customer service during those critical times.

And one of the reasons why Sprout sought out funding from ANSEDA was to continue to build the local foods value chain in large part in a different way because we couldn't do business as usual. So we had to shift our outward facing operations and address the major disruptions in the local food value chain. The CARES funding that we received from ANSEDA allowed us to

re-envision our mission, vision, and values and our operational capacity and really spend time re-envisioning our long-term community development strategies as the world was facing this crisis and we were trying to figure out how we were going to continue to do our work, but also to address the increased consumer demand during the pandemic.

for local foods and the upward tick in consumers' ability to support the local food value chain.

Angela Anderson (02:38.517)
Thank you. What specific challenges were you facing in terms of access to capital before receiving the CARES Act loan? And if you also want to...

Arlene Jones (02:48.474)
Again, you know, the pandemic forced everybody to shift the way that they did business. There was no such thing as business as usual. And so some of the challenges were if we were not able to continue to provide that service of purchasing the food from our small family farmers and having market outlets to sell it to, we were facing a crisis of not being able to stay operational.

And so literally the CARES funding allowed us to take a step back and to re-envision our own internal capacity, but also the external capacity of our consumers and addressing the barriers that our institutions were facing because they could no longer do business as usual. School districts were not serving kids in the classrooms. They were packing lunches and sending them out on buses.

And so we really had to spend a lot of time really honestly re-envisioning how we were going to do business. So that was really the barrier. The solution to that for us was the CARES Act loan allowed us to really have time to take a step back to remain operational whatever capacity we could and to

literally re-envision and redevelop our strategic plan and our mission, vision, and values with a large community input because consumers really stepped up during the pandemic to support local foods because they wanted to, but also because of the supply chain disruptions that were happening at that time as well. So if you can say we took advantage of a crisis, we literally did.

Angela Anderson (04:46.205)
I think I'm having like little bits of trauma from thinking about COVID timeframe. It was not fun. So in practical terms, no, it was not. In practical terms, how has the funding from INSIDA made an impact on your organization and the day-to-day operations and the long-term goals?

Arlene Jones (04:54.164)
It was definitely.

Arlene Jones (05:07.378)
We developed a new strategic plan with a three-year strategy for long-term goals, which included continuing to develop the value chain, but also in large part, what helped build Sprout is the unwavering large-scale community support for the work that we were doing because our mission always has been

building the bridges between art, culture, and agriculture. And so while there are only two food hubs in Minnesota, we are very different in a lot of the work that we do in community development, in place making, in storytelling, in working with our community partners to not only continue to develop Sprout as an agency, non-profit organization in Morrison County,

but how we can have mutually beneficial relationships with our community partners so that we are developing that value chain outside of the scope of what Sprout does. So supporting our food co-ops, supporting our farmers markets, supporting our cities and our counties as resources in the long-term work that we've been doing and the historical impact that we've had and the experiences that we can share.

So again, if you could take advantage of a crisis, we really did and continue to develop our mission, vision, and values, our long-term goals and strategies, but also focused on developing strategies to attract employees that are value-driven, that believe in the mission of Sprout and support the work that we do. And that has been our huge accomplishment attracting employees that believe in what you do is really critical in maintaining and supporting the work and the people that help you do the work.

Angela Anderson (07:17.341)
Very well said. Can you provide examples of specific projects or initiatives that the funding has supported and how those have contributed to your overall mission?

Arlene Jones (07:18.51)
We're all set there.

Arlene Jones (07:34.638)
So I'm gonna actually address a couple of things here and I'm gonna say that providing examples of specific projects, as I said, during the time of receiving this funding, it was also critical to keep our employees employed, that we did not want the pandemic to have additional impacts on our employees. So literally number one, it was financial support to continue to keep our staff employed.

Number two, it was being able to breathe and take a step back because we didn't have to worry about not being, not having the capacity to continue to do the work that we have put so much time and energy in doing. But also beyond the financial support, other resources that we have received from Region 5 and NCEDA in the success of Sprout with their unwavering support to continue to build the agricultural economy within the scope of advancing opportunities for small and mid-tier small family farms and the small and mid-tier value chain. So it also helped us continue to seek additional funding with the support of Region 5 staff and also to continue to build on, you know, known strategies and discoverable strategies as, you know, everybody worked their way through this new way of doing business and working together with Region 5 and NCEDA to not only support the work that we do, but also to support the work that other businesses in the food sector did their work in Region 5.

Angela Anderson (09:32.873)
Thank you, Arlene. I know that it changed a lot of things for us too. We just implementing different plans and things to cover the changes that we had. So I think that's really good. Beyond the financial support, what other forms of assistance or resources have you received from Region 5 Development Commission or NCEDA and how have these elements played a role in your success? 

Arlene Jones (10:38.798)
Sprout has been a long-term partner with Region 5 and NCEDA since 2010 when Region 5 and Sprout became known to each other and the work that growers were doing to build capacity by partnering with each other to fill larger orders and the work that Region 5 was doing on the backside to build the agricultural economy as an economic engine from the buyer side.

Since that time, collectively, Sprout and Region 5 have captured $4.5 million to build the local food value chain from numerous agencies from federal, state, local, regional, philanthropic, who believe in the mission and support the oftentimes very difficult work of building bridges and building capacity in central Minnesota.

Angela Anderson (11:40.565)
Thank you. Reflecting on the journey, what advice would you give to others who are seeking funding and any tips on how they can navigate the process?

Arlene Jones (11:51.406)
First of all, I would say make the call to NCEDA. Make the call, tell your story, let them know what your entrepreneurial ideas are, where you're at, where you might need help, whether it is funding, access to capital, you need technical assistance, you're looking for a referral, you wanna build your own community connections.

or you just need help lifting up your own entrepreneurial opportunities, I would say the first step is make the call and understand that there is no closed door, that Region 5 and NCEDA will open the door or they will find the window.

Angela Anderson (12:41.897)
I think that's very true. Good, thank you. Why do you think INSIDA is focusing on supporting organizations like yours and what unique aspects of their approach make them stand out in terms of fostering economic prosperity?

Arlene Jones (12:57.93)
Both Region 5 and NCEDA are committed to the work of building small businesses and supporting them and continuing to build the, keeping the local economy strong, building critical community connections and advancing economic prosperity for all. They have never wavered from that mission and have advanced staff and

opportunities for not just Sprout, but hundreds of small businesses within Region 5 and oftentimes outside of Region 5 because they are willing to share their networks and share their resources, share their intellectual capacity, and help continue to build small regional and local economies through both sides of the house, Region 5 and NCEDA.

Angela Anderson (13:56.829)
In your perspective, why is it crucial for organizations like Sprout to have access to reliable funding sources, and how does it contribute to the overall well-being of the community that you serve?

Arlene Jones (14:09.614)
First of all, from my own personal experience, you don't know what you don't know. And if you do not know where to turn, where to go, Region 5 and NCEDA are always available to help assist small businesses and entrepreneurship ideas in helping to advance that. So again, you don't know what you don't know.

Whether it's access to capital again or technical assistance or other resources and networks, you don't know what you don't know. And all of the things that I just listed are very critical to advancing small business opportunities and the economic sustainability of our small businesses in Region 5.

Angela Anderson (15:02.973)
As a follow-up, how has the funding positively influenced your relationship with the community and the stakeholders, and what role has it played in building trust and credibility?

Arlene Jones (15:14.958)
Well, you cannot buy trust or credibility, it's earned. And having champions assist you along the way to help believe in and build your mission, vision, and values takes the whole community. And as somebody who is also a small business owner and

a founder and leader of a nonprofit, there is absolutely no way that I could have done this on my own. I needed other networks, I needed other resources, I needed to be trusted, I needed to earn my credibility, but I also needed to be a valued partner that other agencies and organizations could see.

as somebody that was a mutually beneficial partnership, that it's not all for me, it's all for all. And I would suggest that one of the most critical components of Sprouts success is its commitment to community development and in the mutually beneficial relationships that

it has created throughout the region, the state, and nationwide.

Angela Anderson (16:54.402)
Looking ahead, what are your future plans for Sprout and how do you envision Region 5 Development Commission and NCEDA continuing to support your efforts?

Arlene Jones (17:06.722)
say that as we continue to build the local foods value chain, our hope is that more dollars are spent and infused into the local food shed to afford opportunities for healthier revenue streams for our small family farmers and our agricultural economy, which is of utmost critical importance to

Arlene Jones (17:36.022)
you know, broaden the scope of that would be that our local elected officials understand the critical component of food access in central Minnesota and continue to be advocates for legislative appropriations and funding to school districts who have and also school districts, hospitals, those with large.

capacity are known as anchor institutions. To continue to fund our anchor institutions so that they have the capacity to continue to buy local foods, because that has really infused a lot of funding, not into just Sprouts organization, but most of what Sprouts brings in what we sell goes back in supports our small family farms, and that money stays.

here in our local economies and continues to create wealth where it is created. So my hope would be that we continue to have the capacity to speak loudly and hear our voices be heard, that funding continues to flow to our anchor institutions, to our feeding programs, and to the agencies that can continue to support the work that we've done.

And also that local consumers continue to understand that they have the power of where they spend their dollars. And so to continue to support local, buy local, and not just local foods, but our local small businesses and all the work that Region 5 and CETA have done to continue to build that critical infrastructure and supporting the small businesses that support our community.

Because the small businesses are the ones that are holding the events that support our community. And without dropping names of some of the large nationwide chains, I don't see a whole lot of them holding fundraisers or opening their doors to offer resources to support not only other small businesses, but the critical infrastructure of the nonprofit organizations that support our community.

Angela Anderson (19:57.185)
So I think I'm gonna ask this last question, but I wanted to also just comment that you have made a lot of good points in this episode that we're sharing. And I do, I'm ashamed a little bit to admit that I didn't start caring about my local food stuff until I met you actually. So there was, I think when we had the mobile market or something, I got eggs and I came home and I made French toast on the next Saturday morning or whatever and my daughter was like, what recipe did you use, mom?

These are amazing. And she was just gushing about them. And it wasn't, I didn't change anything. I just did my normal recipe with the cinnamon and sugar and eggs and vanilla, right? But it was your eggs. So now I can't buy eggs from the store. I have to get them from my local people because they're just way better and better for us and better for me to. 

Arlene Jones (20:45.046)
And lucky for you, you got a chicken grower on staff.


Angela Anderson (20:54.553)
Once you know, like what you know, when you do know something, then you have to, you can't go back. So it's kind of, it's, it's really fun. Yes, you don't. I grew up in town and we just went to the grocery store and I didn't think twice about it. So I think once, once you know, it's, it's very empowering and you feel good about giving money to local people that you care about. So it's, it's great. Um, really wonderful, honestly. So the last question I have is how can others who are inspired by your story?

Arlene Jones (21:01.206)
And that's kind of why I said you don't know what you don't know.

Angela Anderson (21:23.849)
contribute to the mission of Region 5 Development Commission, ORNC.

Arlene Jones (21:29.678)
I'm gonna go back to the work that we did on our strategic plan. And I just wanna share a couple of things of note. Our values are welcoming, authenticity, and learning among others, but these are the three that I hold. I hold. Be welcoming and engage different voices, perspectives, and backgrounds to enrich in your own ideas and our collective ideas and abilities to achieve our

collective missions because we're all in it for the same goal and that is supporting our local economy. Be authentic and based in truth because understanding earns trust and builds empowering relationships which are absolutely critical to the work that we do and the work that many other small businesses and nonprofits do to support our community.

And the other one is allow yourself to be open to learning because it powers thoughtful strategic decisions to positively impact systems, organizations, and individuals. And always be humble enough to understand that we still have a lot to learn.

Angela Anderson (22:46.441)
You did so good. Thank you. Those are wonderful answers and I really appreciate your time with me this morning so that we can share a little bit more about this loan program that we had through the CARES Act and just how that money was impacting Sprout. So thank you so much.

Arlene Jones (23:03.202)
You're welcome.