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WanderNorth

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  1. I was successful in getting an SBA Patriot Express Loan, which is a 7(a) type loan. It's a decent program, but I'll ad some thoughts on the loan in general. I went to a local bank first. I'd researched what I was looking for ($$$), as well as the specific programs while doing my business plan. I included in the cover sheet specifically what I was looking for, and what was being offered as collateral. There were also a few state and city programs doing loans that I included in the total amount of the loan. Why did I go to a local bank vs an SBA loan guy? That SBA guy will steer you to an SBA loan. The bank, if they like what you have to offer, will look at a few more options. Also, at the end of the day, you'll be going through a bank. Plus, as I'm trying to make and sell a local product, it made sense to me to use a local bank. The Express loan will charge you prime + 3.25%. Length of the loan is tied to your lease. There will be a fee of 3% of the loan cost that you're paying at the front end. The other loans were a lot less in interest rates (2% total), as well as money available. At the end of the day, I didn't use any of the others though. They had a lot more hoops to jump through. As I was signing the loan, my banker mentioned that despite there being six microbreweries and a distillery in the area, I was the first they were granting a loan to. When I asked him why, he gave the following reasons: 1. I was putting 1/4 of the total costs in out of my own money. I had skin in the game. 2. I had collateral (my house). SBA may cover up to 75% if it defaults, but they and the bank figure they'll get about $10 back on every $100 of equipment you've bought. 3. I sold myself. Since this is a new business, they want to know how the owner (you) are going to make it a success. Outside of a few areas in the country, this is probably a brand new concept to them. 4. My business plan was at 90% of what they wanted to know, to include all the financial statements (12 month cash flow, P/L to 5 years, Start up expenses, etc) with solid research to back it up. That being said, all that you've got on what you'll sell is at the end of the day is an estimate. That number was pretty low. And, my expenses were all on the high side. Also, you can frequently get interest only on the loan for the first six months - helps reduce costs while you are building out. You'll need that loan paperwork when you apply for your DSP. I suppose you could have all your build out done, equipment in place, and permits granted, but if you've got all that, do you need a loan? That's the expensive stuff. Hope it helps.
  2. 15 January to 22 May. DSP-MN-20013. My specialist couldn't figure out how to return phone calls or emails. I had to call the main line and ask them to send the supervisor an email. That helped get things going.
  3. These are the cheapest ones I've been able to find. http://maapparel.espwebsite.com/ProductDetails/?productId=550030007&tab=Tile&referrerPage=ProductResults&refPgId=503019681&referrerModule=PRDREB Going with solid copper vs copper plated really drives up the cost as well http://maapparel.espwebsite.com/ProductDetails/?productId=200338639&tab=Tile&referrerPage=ProductResults&refPgId=503019681&referrerModule=PRDREB
  4. Additionally, and I just learned this from going through the process, if you aren't changing the occupancy of the building (ie- F2 to F1), and the building pre-dates ADA, it isn't an issue. When you have to change occupancy is when it gets interesting.
  5. Evidence I'm not the smartest guy in the world - I posted this in tasting rooms instead of local codes.
  6. I make no claims to be the smartest guy in the world. I've read every post on ADI about this, and in talking to my architect, as well as the city inspectors, it appears that the exemption for quantities over MAQ in an F1 space have disappeared. I did some more digging around, and found this from 2013, on page 473 http://www.iccsafe.org/cs/codes/Documents/2012-2014Cycle/Proposed-B/05-IFC.pdf Has anyone else heard about this change? " There is confusion about the applicability of flammable liquid (Chapter 57) hazardous materials (Chapter 50) provisions to distilled spirits because of the exceptions for distilled spirits and wines stored in wooden barrels and casks in IFC Chapters 50 and 57 (and NFPA 30). The issue arises because of the growing popularity of “boutique” or “craft” distillers locating their operations in urban areas. The proposed language clarifies bulk storage provisions for distilled spirits but does not alter the intent. The proposed language does not affect provisions applicable to use, nor those applicable to liquor storage in retail or wholesale establishments. ICC COMMITTEE ACTION HEARINGS ::: April, 2013 F473First, note distilled spirits are Class 1C and Class 1B flammable liquids.... If a quantity of a Class 1B or Class 1C flammable liquid exceeding the MAQ, the room in which it is located is an H3 Occupancy. Please remember this applies to bulk storage (casks, barrels, metal containers, etc. exceeding 1.3 gallon capacities) and not to liquor stores and wholesale distributors for which there are several exceptions. H occupancies have to be sprinklered. This is the primary provision overlooked because of the confusion noted above. This is not because wood is inherently safer than metal, plastic or glass – it is not. It was probably inserted in the legacy code(s) back when casks were stored in liquid storage warehouses separated by hundreds of feet from one another and urban distilleries weren’t contemplated... applicable code requirements have not been changed. The UBC legacy code excepted distilled spirits stored in wooden barrels and casks from the secondary containment and ventilation requirements normally mandated for flammable liquids. The exception was often misinterpreted even then to extend to the entire range of code provisions. When flammable liquids requirements were brought into the IFC, the exception was moved to the scoping provisions which created the confusion recurring today. The deletion of the exception in Section 5001.1 removes the confusion associated with the applicable requirements. The modifications to Sections 5004.2.2 and 5004.3 reestablish the exceptions to secondary containment and ventilation contained in the legacy code.
  7. Craftersglass - it all depends on how you define accommodating. The annual permit fees for the state dropped from $30,000 a year to $1,000 for small producers a little over a year ago. The Guild is working to get approval for paid tasting rooms (law changes), which would be huge. But, as I've read here numerous times, it comes down to working with the local officials. Since it's new, and different, it's taking a fair amount of education and effort to get permits and approval. No one is actively fighting against us, and there are a lot of consumers out there really excited for made in Minnesota, from Minnesota grain, libations. The local brewers that I know have been more than helpful in guiding, and offering advice. And, they all want to know when they can get their hands on some used bourbon barrels!
  8. Thanks for the feedback. I figured Go Payment might someday integrate completely with Quickbooks, which is why I was looking at it. I've heard good things about Square from the local taprooms, so will be going with them, since apparently selling tshirts with a distillery logo violates Intuit's sensibilities.
  9. I've been exploring the mobile credit card readers that plug into a phone/tablet for the tasting room. Currently, Minnesota doesn't allow distillers to sell spirits at the distillery, so it would be for apparel sales after a tour. My question is if anyone has had experience with these. I was attempting to set up an account with Intuit's Go Payment, but received an email that was pretty vague in that they couldn't provide it, due to the products or services that I sell. Just curious if anyone else is using this, either by Intuit, Pay Pal, or Square. As well as your thoughts on them.
  10. Greetings from Minnesota. I've been lurking around for about the past year, reading and learning, and thought I'd finally introduce myself. I'm starting a distillery in Minneapolis, MN called Wander North. It's been about three years in the making, and I've buying my equipment, awaiting DSP approval, and finishing the build out. Thanks everyone for all the passing along of knowledge.
  11. Ian: I was successful in getting an SBA Patriot Express Loan, which is a 7(a) type loan. It's a decent program, but I'll had some thoughts on the loan in general. I went to a local bank first. I'd researched what I was looking for ($), as well as the specific programs while doing my business plan. I included in the cover sheet specifically what I was looking for, and what was being offered as collateral. There were also a few state and city programs doing loans that I included in the total amount of the loan. Why did I go to a local bank vs an SBA loan guy? That SBA guy will steer you to and SBA loan. The bank, if they like what you have to offer, will look at a few more options. Also, at the end of the day, you'll be going through a bank. Plus, as I'm trying to make and sell a local product, it made sense to me to use a local bank. The Express loan will charge you prime + 3.25%. Length of the loan is tied to your lease. There will be a fee of 3% of the loan cost that you're paying at the front end. The other loans were a lot less in interest rates (2% total), as well as money available. At the end of the day, I didn't use any of the others though. They had a lot more hoops to jump through. As I was signing the loan, my banker mentioned that despite there being six microbreweries and a distillery in the area, I was the first they were granting a loan to. When I asked him why, he gave the following reasons: 1. I was putting 1/4 of the total costs in out of my own money. I had skin in the game. 2. I had collateral (my house). SBA may cover up to 75% if it defaults, but they and the bank figure they'll get about $10 back on every $100 of equipment you've bought. 3. I sold myself. Since this is a new business, they want to know how the owner (you) are going to make it a success. Outside of a few areas in the country, this is probably a brand new concept to them. 4. My business plan was at 90% of what they wanted to know, to include all the financial statements (12 month cash flow, P/L to 5 years, Start up expenses, etc) with solid research to back it up. That being said, all that you've got on what you'll sell is at the end of the day is an estimate. That number was pretty low. And, my expenses were all on the high side. So, I guess this was less a response on the SBA loan specifically, and more on the loan process. Hope it helps.
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