Several business owners in Mesa, Arizona have already seen the benefits of the Community Development Financial Institution's loans and grants.

Kellie Huntington, who owns Sweet Cakes Cafe along Main Street downtown, received a $50,000 loan to add a yogurt bar and expand her dining area.

Huntington said her landlord told her about the program after a deli moved out of the spot next to her. The expansion enabled her to hire two full-time employees and a half-dozen part-time employees, she said.

"We kind of had to when the Christel's (Bavarian Deli) moved out - we had to take back the space.

We racked our brain where we could expand our bakery but wanted to learn how we can attract more retail dollars," she said. "It's low interest, and it gives you six months before you start making payments."

Huntington said she heard about the program from Treekmol Nunthaporn, who used a $50,000 loan from the Community Development Financial Institution to open Nunthaporn's Thai Cuisine next door to Sweet Cakes last summer.

The program, through the U.S. Treasury Department, provides credit, capital and other financial services to underserved communities and is expected to make $300 million available for small businesses this year. The fund works through local agencies to distribute the money.

The non-profit Neighborhood Economic Development Corp. in downtown Mesa is one of several accredited Community Development Financial Institutions in the Valley that is eligible to apply for grants.

The corporation receives public and private funds to provide low-interest loans to micro-enterprises in Arizona. The goal is to generate jobs and boost the economy in low- to moderate-income areas.

In the past two years, the corporation has seen a spike in loan applications and has approved a dozen loans.

That's a significant increase over years past, corporation Executive Director Terry Benelli said. Benelli said 70 percent of the recent loans were for business startups or expansions.

The Mesa group recently applied for a $300,000 grant to be used for strategic planning to expand the corporation's services in Florence, Queen Creek, other Pinal County areas and Tempe.

The corporation provides loans of up to $50,000 to small businesses that may have trouble getting access to capital from banks because of tight credit markets.

Cindy and Cameron Selogie received a loan that helped them raise the $200,000 they needed to turn an old diner on West Main Street near Country Club Drive into a wine bar and restaurant.

The husband and wife team opened il Vinaio last summer with 20 employees. "NEDCO is very helpful, said Cameron Selogie, who added it offers startup and business education for entrepreneurs. He said sales have grown 40 percent since their restaurant opened.

Lloyd Dillon, who owns Arizona Value Shuttle, is applying for a loan through the development corporation.

 

Dillon wants to expand his shuttle service, on the border of east Mesa and Apache Junction, with more vans and drivers. "Everyone just rejected us. This is the last resort."