Premium ContentMouse over Home then click on Premium Content for information.For Mike Popelier, the loan was part of turning a layoff into an opportunity — and a knack for barbecue into a business.
Julie Kaup used the money to launch an electrical contracting company and create jobs for seven people.
Mike Hoy built a brand new funeral home, complete with state-of-the-art facilities and equipment.
Their businesses are among the more than 1,200 Nebraska and Iowa firms that received loans through the U.S. Small Business Administration in the fiscal year that ended Sept. 30 — the biggest year ever for the agency's loan program. In total, the SBA backed more than $30 billion in loans to about 61,000 businesses across the country. The Nebraska office of the SBA backed $167.5 million in loans, and Iowa's SBA office helped businesses secure $293.6 million in loans.
The previous record was set in 2007, before the start of the recession: $28.5 billion nationwide.
Nebraska business owners who received loans reported that they'd use the money to create about 2,000 jobs — and keep 4,300 current employees working. Iowa's numbers totaled 2,544 jobs created and 7,030 jobs retained.
In both Nebraska and Iowa, the number of loans was down from a year ago, though the total amount increased.
Michael Foutch, a business development specialist with the Nebraska SBA office, said the trend of fewer firms applying for the loans is a national issue, not just something happening in the Midlands.
But he said "the real story" is that the average loan size is up. "If people are asking for more money, that's a good sign."
The numbers released by the SBA include loans issued through two separate programs. In the more common 7(a) loan program, the agency guarantees 90 percent of the loan, making it less risky for the bank — and ideal for a business that might not be able to put up enough collateral. The 504 program, meanwhile, is aimed at financing for more expensive equipment and real estate and involves several funding streams, including an SBA-guaranteed bond.
SBA officials said last year's record loan amounts probably had something to do with legislation that allowed the agency to waive fees and raise its guarantee. But they said it also has something to do with banks still being hesitant to make loans — especially to new businesses.
Jerry Jares, vice president of commercial lending for Access Bank in Omaha, said he has OK'd loans for several local businesses as a direct result of the SBA's support.
"It gives us some additional security to be able to do the deal that we wouldn't otherwise be able to do," he said.
One of his recent clients was Hoy, who was looking to build a new funeral home in Council Bluffs. He was able to help the Hoy-Kilnoski Funeral Home and Crematory, located at North 16th Street and Avenue L, secure a $250,000 loan, used to help with expenses ranging from construction to furniture.
The business opened about two months ago and now has six full-time employees.
"(The loan) definitely helped the project go from a vision into a reality," Hoy said.
A dozen other loans went to businesses in Pottawattamie County, ranging from $10,000 to nearly $2 million.
In Nebraska, the average loan amount was $316,156.
Loan volume made a particularly notable jump — 21.6 percent — in the 2nd Congressional District, which covers Omaha and parts of Sarpy County.
Those businesses included Boss Electric, a new business started by Kaup late last year.
Today, she has five electricians, a contractor and an office manager on her staff and plans to hire three more electricians. But getting started required a bit of help.
Kaup ended up applying for an SBA loan after getting a recommendation from the Nebraska Business Development Center, where she'd gone to get some assistance putting together a business plan. With the approximately quarter-million-dollar loan she received, she was able to buy vehicles and specialized equipment and set up a line of credit so she could secure projects.
The bank that provided Kaup the loan, Centris Federal Credit Union in Omaha, also had a noteworthy year; It was named the SBA's nationwide Rural/Community Lender of the Year. It made 43 loans.
After losing his job as a manager at an Omaha copier company, Popelier started spending more time behind the grill. He'd been coming up with his own rubs and sauces for years — even competing with a group of neighbors who called themselves the Desperate Husbands — but never thought of it as something to pay the bills.
He'd been doing demonstrations at a Hy-Vee store for a few years, and when customers started clamoring for his products, he decided it was time to get serious.
In December, he launched two lines of barbecue sauce and then a variety of rubs and marinades. A $50,000 SBA loan helped him get the funds he needed for the basics, from securing a trademark to making deals with bottlers.
Less than a year later, his company — still a one-man operation — is growing fast. His products soon will be in the stores of seven separate grocery chains. For Hy-Vee alone, he's in 150 stores. He's in talks with other companies to expand the business on a national level.
Popelier said the SBA loan was critical to his success.
"It really allowed my business to grow," he said.
Contact the writer:
402-444-1543, erin.golden@owh.com
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