Ultimate Stress Test by Initiative Foundation

FALL 2020

ECONOMY

Safer Together— Marrying the needs of local businesses with public health realities. Pg. 8

GENEROSITY

Partners in a Pandemic— Community-based funds bolster their hometowns during COVID-19. Pg. 12

COMMUNITY

Food for Our Friends— Cultivating connections to meet the region’s food needs. Pg. 42

ULTIMATE STRESS TEST

How Central Minnesota is confronting the COVID-19 crisis. Pg. 16

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IQ Initiative Foundation FALL 2020

Contents FEATURES

DEPARTMENTS

24 30 36

Ultimate Stress Test

How Central Minnesota is facing the century’s biggest health crisis.

2019 Annual Report

Read an excerpt of the Initiative Foundation’s 2019 annual report.

Survival Strategy

Supporting small businesses in their time of need.

Crisis in Caring

Navigating Central Minnesota’s child care shortage.

Regional Highlights

Get the latest highlights from the 14-county area.

Economy:

Safer Together

Marrying the needs of local businesses with public health realities.

Generosity:

Partners in a Pandemic

Community-based funds bolster their hometowns during COVID-19.

Home made:

Pandemic Pivot

Wyoming Machine, Teehive, LINDAR make the switch to pandemic-related products.

Food for Our Friends How local organizations are keeping people nourished.

Initiatives:

Where’s IQ?

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Dear Friends, In this edition of IQ, which arrives amidst the continuing coronavirus pandemic, the aftermath of the George Floyd murder, and so many other challenges, we’ve curated a series of stories about how Central Minnesotans are weathering “The Ultimate Stress Test,” as our cover headline says. It’s hard to argue with the idea that 2020 has brought more collective adversity and stress than most people can remember. But as you’ll see from this edition’s photos of smiling people, and their words of perseverance and hope, our region is facing this test with a deep well of resilience. Consider the entrepreneurs featured on our cover: Supported by an Initiative Foundation loan, Mateo Mackbee and Erin Lucas launched two food-related businesses in March, right as shutdown orders severely affected their industry. Some folks might have taken this as a sign to abandon their plans. Mateo and Erin pressed on, however, and opened their restaurant and bakery to rave reviews and a large and loyal customer base. Similarly, the pandemic has been hard on our region’s child care providers. As regular IQ Magazine readers know, child care providers face major challenges even in the best of times, and the Initiative Foundation’s current strategic plan prioritizes measures to help. With the arrival of the pandemic, the situation only got worse. Providers like Jennifer Chilton saw a rapid loss of income as many parents kept their kids home during the transition to remote work. But workers in critical industries like health care and corrections couldn’t work remotely. They needed safe and affordable care for their kids. It put Jennifer in a bind. An emergency grant from the Initiative Foundation helped her and other providers weather the early days of the pandemic and Stephanie and Caleb Silgjord of Grey Eagle were able to rely on their child care provider made it possible for parents to continue their so they could continue as essential workers work—highlighting the essential role of the in the region. child care industry itself! Founded in response to the 1980s farm crisis, the Initiative Foundation is part of a resilient and deeply rooted regional support system. The investments of generous donors over the intervening years have prepared us for this moment, equipping us to play a significant role in helping Central Minnesota bounce back once again. Thank you, and enjoy the magazine!

Matt Varilek PRESIDENT

VOLUME 32, FALL 2020

405 First Street SE Little Falls, MN 56345 (320) 632-9255 | ifound.org

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Initiatives

WADENA TODD

CROW WING

MORRISON

MILLE LACS

PINE

BENTON STEARNS

ISANTI SHERBURNE

CHISAGO

Regional Investment Highlights

CASS

KANABEC

WRIGHT

WESTERN MORRISON COUNTY | It’s in the Bag: Pet Food Maker Starts New Plant Production Ninety new jobs are contributing to the local economy with the start of production this summer at the Little Falls location of Barrett Petfood Industries (BPI), a producer of more than 150 pet foods that are distributed around the world. In August 2019, the Initiative Foundation joined Bell Bank and a host of community partners to fund BPI’s 165,000-square-foot construction project. BPI’s original production plant is located near Brainerd. Combined, BPI’s two locations employ nearly 200 people.

TODD COUNTY | Communities Get Helping Hand to Tackle Child Care Shortage In Central Minnesota, there is a need for as many as 17,000 child care slots to meet the demands of would-be working parents. Supported by the Initiative Foundation’s Child Care Solutions program, four regional communities—Greater Todd County, Greater St. Cloud and Kanabec and Morrison counties—are working to make a difference. Each has received a $10,000 Initiative Foundation grant plus ongoing consultation to seek solutions and address the shortfall.

WADENA COUNTY | Campus Tours Help Students Envision College Experience MORRISON: The new Barrett Petfood Innovations (BPI) manufacturing plant is located in the Little Falls Chief Hole-in-the-Day Industrial Park.

NORTHERN

Studies show students who make campus visits can more easily picture themselves attending college. The Staples-Motley school district during the 2019-2020 school year organized trips so more than 80 students could visit area college campuses. The effort was supported by a grant from the Staples Motley Area Community Foundation, an Initiative Foundation Partner Fund. Students were able to meet with admissions staff and faculty to explore career options and learn about the college experience.

CASS COUNTY | Stopping the Invasive Spread in Minnesota Lakes Eurasian watermilfoil, zebra mussels and starry stonewort: All of these aquatic invasive species and more are found in Minnesota lakes. Supported by $4 million in funding from the Lessard-Sams Outdoor Heritage Council with approval from the 2014 Minnesota Legislature, the Foundation in early 2020 completed its support for 17 statewide pilot projects, including a Cass County plan to teach resort workers about mitigation efforts. Learn more at ifound.org/community/aquatic-invasive-species.

CROW WING COUNTY | COVID Creativity: Art Kits Spark Kids’ Imaginations When times get tough, the creative get more creative. And that’s just what the Crossing Arts Alliance did to help kids and families during the COVID-19 pandemic. A recent graduate of the Initiative Foundation’s Jumpstart program, the Brainerd-area nonprofit is distributing free Creativity Kits for local kids. Each kit features the work of local artists and contains two art projects and a coloring sheet. The move was so popular it attracted Frandsen Bank & Trust and Mid Minnesota Federal Credit Union as sponsors.

MILLE LACS COUNTY | Load the Car and Drive the Mille Lacs Scenic Byway CASS COUNTY: Eric Hansen, owner of Pehrson Lodge Resort, shows an employee how to inspect a boat for aquatic invasive species as part of the Resort Ambassador program.

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Ready for a drive? Load up the vehicle, grab a points-of-interest map from an area business and tour the 68-mile Mille Lacs Scenic Byway. Climb a 100-foot observation tower, learn about Ojibwe traditions and culture or simply enjoy the scenery of Minnesota’s second largest lake. The Initiative Foundation supported initial planning for the scenic byway designation, which is now under consideration by the Federal Highway Administration as a national scenic byway.

“ When the COVID-19 pandemic began in March, the Initiative Foundation awarded a grant to my daycare! I purchased essential cleaning supplies, diapers, wipes, learning books, puzzles and some toys.” – Ronda Palmer, Tiny Tots Daycare, Walker

SOUTHERN BENTON COUNTY | Downtown Foley Mural Gives Nod to Art, History When art and history meet, something beautiful can be created. Supported by an Initiative Foundation community development program, Foley citizens are on the cusp of completing a hometown mural on the exterior of Dombrovski Craft Meats, just across from city hall. The community-approved mural design pays tribute to Foley’s rich history and is expected to be finished by November. Committee members hope the mural instills local pride and attracts visitors.

SHERBURNE COUNTY | County Initiative Brings Relief to Reeling Restaurants When statewide shut-down orders were lifted in June, the hard-hit restaurant industry was reeling. To ease the impact, the Sherburne County Outdoor Capacity Relief Fund was created. Seeded with $20,000, the fund reimbursed locally owned and operated bars and restaurants for outdoor accommodations such as tents, tables and chairs to support social-distancing efforts. The Initiative Foundation and Three Rivers Community Foundation helped to create the fund and distribute grants.

STEARNS COUNTY | An Essential Role: Boys and Girls Club Fills Child Care Gap With students out of school in mid-March, child care providers were heroes to working parents, especially those who weren’t able to telework. The Boys & Girls Club of Central Minnesota stepped up to provide free child care to essential workers and a “Grab and Go” meal program. The effort was supported by an Initiative Foundation grant. “The Boys & Girls Club is doing whatever it takes to support children and families in need during the pandemic,” said Mary Swingle, president of the organization.

SHERBURNE: Lupulin Brewing in Big Lake received a grant from the Sherburne County Outdoor Capacity Relief Fund to upgrade its outdoor seating area.

WRIGHT COUNTY | Awareness Day Addresses Mental Health Suicide is the second leading cause of death among 15- to 24-year-olds, according to the Centers for Disease Control. Students and staff at Delano High School are working to end the stigma of depression and shed light on suicide so teens can help themselves and one another. Supported by the Delano Area Community Foundation, an Initiative Foundation Partner Fund, students during February’s suicide prevention month explored mental health topics and learned about creating connections.

EASTERN

CHISAGO COUNTY | Giving Essential Workers and Kids the Very Best Care From firefighters to mental health professionals to public safety employees, essential workers continue to make important contributions during the COVID-19 pandemic. With support from an Initiative Foundation grant, staff with the North Branch school district’s Youth Connections program were able to provide free care to the children of essential workers. The program is located in the North Branch Area Education Center and provides a safe and nurturing environment for youth.

ISANTI COUNTY | Meal Deliveries Expand for Local Seniors The COVID-19 pandemic has forced many senior citizens into isolation, and sourcing food has become a particular challenge. The Isanti County Commission on Aging responded to the cause and now delivers 35 meals per day—up from a pre-pandemic level of 10 meals a day—thanks in part to a grant from the Cambridge Memorial Hospital Foundation, a Partner Fund of the Initiative Foundation.

KANABEC COUNTY | Fundraising Challenge Accepted: Tusen Tack Unique times present unique challenges. And a host of Central Minnesota nonprofits were up to the task during #GiveAtHomeMN, a May fundraising event. Enticed by a $3,000 matching grant, Tusen Tack, a Braham-based thrift store that uses proceeds to support regional communities, earned the top prize by being the first to reach $3,000 in donations. Surprise grants of $1,000 were awarded to Friends of Linden Hills, Inc., in Little Falls and New Pathways in Cambridge.

KANABEC: Tusen Tack volunteers staff an event in pre-COVID times at the Braham Events Center as a way to contribute to the wider community.

PINE COUNTY | County, Foundation Pair to Care for Local Businesses From salons to campgrounds to restaurants to the Grand Cinema movie theater in Hinckley, scores of businesses have had to shutter or make revenue-changing adjustments during the statewide stayat-home orders. During the first weeks of an ongoing program, with help from the Initiative Foundation, Pine County was able to award more than $200,000 and alter the economic course for 30 local businesses using federal funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. FALL 2020

economy

UP NORTH ETHOS: Matt Kilian (left), president of the Brainerd Lakes Chamber of Commerce, and Crow Wing County Administrator Tim Houle.

Safer Together The Lake Country Cares initiative marries business promotion with a COVID-19 public health message. By Elizabeth Foy Larsen | Photography by Michael Schoenecker

It was late March, and employees of Grand View Lodge in Nisswa were anxiously tuned into Minnesota Gov. Tim Walz’s daily coronavirus briefing. The largest resort in the state, Grand View usually employs 800 summer workers to staff its historic main lodge and restaurants, spa, golf courses and special events. “We waited until 2 p.m. every day to find out what new was going to happen,” said Frank Soukup, the resort’s director of marketing. On March 16, the governor’s stay-at-home order went into effect, and the cancellations rolled in. Weddings, corporate gatherings, family reunions—they all had to be taken off the books. The restaurants closed, and so did the Glacial Waters spa and the pool and the gym. The entire region, which is heavily dependent on tourism, was immediately on edge. “It was such an eerie time,” said Matt Kilian, president of the Brainerd Lakes Chamber of Commerce. “The streets felt like a ghost town and the hospitals were scrambling and putting up tents [for a potential overflow of patients]. Our county purchased a refrigerated semi-trailer to potentially handle bodies.”

Kilian knew these closures would be tough on the 1,100 businesses the chamber represents. So he and his team set to work to figure out a way to support them. The chamber immediately announced it wouldn’t drop any business that couldn’t afford to pay dues. It also opened up all chamber services to the 1,400 local businesses that weren’t a part of its network. They promoted the importance of buying local, set up peer networking events on the Zoom video conferencing platform, and they hosted webinars about how to navigate government programs, including the Paycheck Protection Program (PPP). They also partnered with a host of organizations, including Crow Wing County, Essentia Health, Cuyuna Regional Medical Center and Lakewood Health System, to devise a plan that would help businesses when it was time to reopen. The move also served to reassure residents and potential visitors that the Brainerd Lakes area was a safe place to run errands and to visit for a vacation. Those crisis talks turned into Lake Country Cares (lakecountrycares.com), a COVID-19 safety campaign designed to build trust among residents, visitors and local businesses. The CONTINUED ON PAGE 10

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economy, continued from page 8

“ The fear of the economic devastation on our community was very real.” Initiative Foundation supported the effort with a $10,000 economic development grant.

MIDDLE GROUND

From the start of the campaign, all parties agreed there was an urgent need to find the middle ground between several competing desires. On the one hand, the region’s businesses were eager to reopen. “The fear of the economic devastation in our community was very real,” said Crow Wing County Administrator Tim Houle, who noted that unemployment numbers reached almost 25 percent during March and April in the tourist-dependent economy. On the other hand, there were residents who were afraid of contracting the virus. “Some folks wanted us to lay out the ‘unwelcome’ mat and put locks on the gates of the county border,” said Houle. That very real concern had one significant hitch: The region is home to a significant population of snowbirds who wanted to return to the place they feel happiest and most at ease. To answer these competing priorities, Houle said it was important that the messaging for Lake Country Cares set a positive tone to guide businesses as they reopen across the Brainerd Lakes region. The result, he says, was a “softer, gentler, Up North feel” that includes buffalo plaid face masks and Paul Bunyan-themed messages, such as the one that recommends people stand “two axe handles” apart—that’s 6 feet— from each other to practice social distancing. “It’s about being safe together,” said Houle. Equally important, the Lake Country Cares website offers local businesses—from hair salons to restaurants to fitness centers and bars—a platform where they can post their COVID-preparedness plans so that customers can see what they are doing to ensure safety and wellbeing. The campaign is partnering with Crow Wing County to have the public health department voluntarily review plans and even provide suggestions. Businesses that submit their plans receive a poster, masks and other items to place around their stores to let customers know they are following the highest-possible safety standards.

SAFE SUCCESS

The initiative has been such a success that other chambers have reached out in the hope of replicating the Lake Country Cares model. “That’s exactly what we were looking for when we made the economic development grant award,” said Jeff Wig, Initiative Foundation vice president for entrepreneurship. “We recognized it as a good model for others to follow and to replicate for their own communities.” Locals have also responded enthusiastically. “It’s always great to walk into a store in Brainerd and see someone wearing their Paul Bunyan facemask,” Wig said. “The theme adds some light-heartedness to what really is a serious matter for our wellness and our economic vitality.” 10 Initiative Foundation ifound.org

Houle even credits the effort with controlling the spread of the virus. Resort accommodations and vacation rentals across the region were booked during the July 4th holiday. Two weeks later— the amount of time it usually takes for transmissions to show up in the Minnesota Department of Health statistics—there wasn’t a discernable uptick in cases. Now, with a successful summer behind them, many local businesses say Lake Country Cares has been worth the investment. As the state emerged from the governor’s stay-at-home order, Grand View quickly pivoted to become a destination where families could still enjoy a vacation, albeit in a socially distant way. While restaurants and the pool and the gym could operate only at 50 percent capacity, the resort got creative and put out picnic tables across its 750-acre spread, with an extensive new list of take-out dining options. While Grand View wasn’t able to recoup its losses on group event bookings—and its parent company wasn’t able to operate its overnight camps that summer—the resort was able to do what it does best: provide a respite for families who needed to relax together on the lake, roasting s’mores and listening to the loons. What’s more, they were able to employ 600 workers during the worst economic downturn in a century. Kilian says the smaller family-owned resorts are often booked to capacity. (Builders and contractors also are seeing a surge in business, as are boat dealerships and recreation outfitters.) “People are embracing the outdoors,” said Kilian. “If you are driving back to the metro on a Sunday afternoon, you would have no idea that we are in the middle of a pandemic. Traffic is like it always is: boats, RVs, cars backed up to the stoplight in Royalton.”

OPEN FOR BUSINESS For more information, visit lakecountrycares.com. For resources from the Minnesota Chamber of Commerce, visit mnchamber.com and navigate to the COVID-19 business toolkit.

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FALL 2020

generosity

MAINSTREET MATTERS: Dave Dillan, Rum River Community Foundation chair, says Milaca-area grants are helping to support senior dining, restaurants, bars, hair salons and more.

Partners in a Pandemic The Initiative Foundation and its hosted Partner Funds are helping regional businesses and nonprofits survive the stresses of the COVID-19 outbreak. By Gene Rebeck | Photography by John Linn

Before the pandemic, the Three Rivers Community Foundation (TRCF) provided grants to a variety of recipients, from a local youth marching band to several after-school programs to homeless shelters, all in a geographic area that includes the cities of Elk River, Otsego, Rogers and Zimmerman. That focus changed when COVID-19 arrived. The board quickly switched focus to fund the immediate needs of the communities it serves. Board members altered their usual grant process, which occurs over the summer, in favor of immediate emergency relief. As a result, TRCF prioritized its grants to answer the hardships resulting from the pandemic, with a primary emphasis on local food shelves and child care providers. While the foundation traditionally gives money to efforts that promote food security, they “gave more this year, and sooner, because the need was greater, and was needed right away,” said Mark Peterson, TRCF board chair. When Minnesota Gov. Tim Walz announced a statewide emergency on March 13, government agencies and nonprofits

quickly launched financial relief efforts to respond to the pandemic. On March 18, the Initiative Foundation established the Central Minnesota Emergency Relief and Recovery Fund, which it seeded with $20,000. Additional support for the relief fund was provided by the Minnesota Council on Foundations and its Disaster Recovery Fund for Coronavirus, and the generosity of numerous nonprofit organizations and individual donors. By June 30, the end of the second quarter, the Initiative Foundation and its Partner Funds had disbursed 320 grants worth nearly $700,000 to provide local relief. And the effort is ongoing. Community Philanthropy Manager Kate Bjorge said Initiative Foundation-hosted Partner Funds are an extension of the Foundation’s mission to build a thriving economy, vibrant communities and a lasting culture of generosity throughout Central Minnesota. During normal times, these funds mirror the Initiative Foundation’s efforts to make grants to nonprofits, schools and local units of government. That great work continues. However, in times of declared disaster, those restrictions can be lifted and grants can be made to small businesses as long as there is a charitable purpose. CONTINUED ON PAGE 14

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generosity, continued from page 12

“ The state and federal programs are great, but they have a lot of paperwork and a long wait time.” The Initiative Foundation has routed some of its emergency resource funds through its Partner Funds, and it has helped some of those funds set up highly localized relief efforts of their own to help donors more directly support their communities. “This was our way of taking a hyperlocal approach,” Bjorge said. “We wanted to get shared resources to the communities and allow those local stakeholders and community members to decide how the funds should be used to provide more immediate relief to both nonprofits and small businesses.”

Local Approach

The Partner Fund relief funds were set up primarily through calls—via Zoom—that Bjorge initiated to engage local advisory board members as they adjusted to the new COVID-19 reality. “They were starting from a strong place because they already had a model for raising funds as well as getting those funds deployed immediately in their community,” said Bjorge. Though the COVID-19 outbreak was a unique emergency, the Initiative Foundation could draw on models it had used when helping communities respond to past disasters, including the Wadena tornado of 2010 and the 2016 Melrose fire. The teams moved swiftly to set their strategies and to create dedicated GiveMN donation pages and grant application forms to raise funds and disburse grants. One local effort that has used these tools is the Milaca Area Emergency Relief Fund, established by the Rum River Community Foundation. Dave Dillan, the community foundation’s board chair, said the relief fund has awarded 25 grants averaging around $1,000 to help support senior dining, restaurants, bars, hair salons and more. “COVID-19 came on so fast that people weren’t prepared,” Dillan said. “The state and federal programs are great, but they have a lot of paperwork and a long wait time. The Initiative Foundation was able to turn these applications around quickly. So it gave people at least a little something to hang on.” While the relief grants couldn’t fulfill nonprofits’ entire funding needs, the hope was that they could provide temporary relief that could hold them over until they could access other sources of support, including the federal Paycheck Protection

Program (PPP). Helping local businesses also was the impetus behind the Staples Motley Area Community Foundation’s Pandemic Relief Fund. “Small businesses are such an important part of our community,” said Katie Heppner, the community foundation’s board chair, “so we thought that this would be a great way to support our local businesses.” To establish its relief fund, the Staples Motley Area Community Foundation donated money from its own endowment. It also raised $17,670 from local donors. “That really showcases the community’s support for small businesses,” Heppner said. The fund has provided grants of up to $2,000 to more than 20 area businesses. “These are Band-Aid® grants,” Heppner said. Still, she hopes “they’ve been helpful getting some bills paid and therefore one less thing for these businesses to have to worry about.”

Faster Response

The Three Rivers Community Foundation (TRCF) took a different approach in its COVID-19 relief funding when it shifted to emergency needs. In addition to supporting local food shelves, TRCF presented grants to area homeless shelters, including Open Doors for Youth in Elk River and Granny’s Closet, which is an Elk River provider of clothing for seniors. All told, it donated COVID-related grants to 10 area organizations. The community foundation still has “a few dollars left,” board chair Peterson said, in case more pandemic-related help is required. During the first half of the year, TRCF also partnered with Sherburne County to establish the Sherburne County Outdoor Capacity Relief Fund, which helped local restaurants and bars with the extra financial burden of setting up outdoor serving and dining spaces. “This effort allowed all of us—the Initiative Foundation, the Three Rivers Community Foundation and Sherburne County—to work together and make a meaningful contribution,” Bjorge said. “We were able to leverage our partnerships while giving local nonprofits and local businesses one more tool in their fight for survival.”

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Contact Kate Bjorge, community philanthropy manager, at kbjorge@ifound.org or (320) 631-2048.

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FALL 2020

Central Minnesota has seen its share of setbacks, but nothing on the scale of the COVID-19 pandemic, which has challenged regional response systems on every level.

ARTISAN APPROACH: Mateo Mackbee (left) and Erin Lucas at Flour & Flower in St. Joseph.

16 Initiative Foundation ifound.org

The Ultimate Stress Test The COVID-19 pandemic is the most challenging public health and economic crisis Central Minnesota has faced in a century. Here’s how the Initiative Foundation is supporting our region. By Laura Billings Coleman Photography by Michael Schoenecker and John Linn

Ever since they started dating, chefs Mateo Mackbee and Erin Lucas have been dreaming up ways to build connections and community with love, honey lavender pie and a legacy of Louisiana family recipes. Veterans of the Twin Cities food scene, the couple relocated to Central Minnesota a few years ago, earning rave reviews for Model Citizen, their now-closed New London restaurant, which became a nonprofit that teaches kids about sustainable agriculture and cooking. They were planning to put down even deeper roots in the region in spring 2020 with an ambitious pair of projects in St. Joseph: Flour & Flower, an artisan bakery featuring Lucas’s trademark croissants and Scandinavian pastries, and Krewe, a Cajun/Creole restaurant inspired by Mackbee’s New Orleans heritage. Financed with help from family and friends, as well as a small business loan from the Initiative Foundation, the two eateries were gearing up for a grand opening in late March.

The novel coronavirus put a sudden halt to their plans.

The statewide stay-at-home restrictions forced restaurants, retailers and other small town businesses to close their doors—an economic shut-down that caused more than 80,000 Central Minnesotans to file for unemployment in the first two months of the pandemic. With no income and no obvious end in sight, simply finding flour, yeast and other fast-selling baking supplies became a challenge during those first months of social distancing. The bread oven and mixer Lucas ordered from

FALL 2020

REBECCA GRAVES: “I’m really proud of the way we pivoted to provide help for so many families in need.”

Italy were even put into quarantine. “We’ve been in this business for awhile, so we tried to save with the idea that things don’t always go according to plan,” said Mackbee. “But these were problems we did not see coming.” Main Street businesses and mom and pop shops make up an estimated 44 percent of the U.S. economy. They’re even more critical in Greater Minnesota, where 99.7 percent of local businesses are small businesses. “That’s why, at the start of the pandemic, the very first thing we did was to offer to defer loan payments for all of

Central Minnesota’s nonprofits are experiencing a loss of funding at the same time that demand for health and social services is shooting up.

the small businesses in our portfolio,” said Matt Varilek, president of the Initiative Foundation. The move helped to create a little breathing room for 40 business owners, but it was just the start of an aggressive set of lending strategies and community grants the Initiative Foundation has launched since March to help buffer the economic strain and eventually move Central Minnesota’s economy into recovery. Responding to major challenges in Central Minnesota’s rural and small town communities is built into the DNA of the Initiative Foundation, one of six regional entities that were created through a McKnight Foundation effort during the 1980s farm crisis to help build more diverse and resilient economies in Greater Minnesota. Over the last four decades, the region has seen its share of setbacks, recessions and natural disasters, but nothing on the scale of the COVID-19 pandemic, which has challenged regional response systems on every level, from health care and senior housing to food security and child care.

Continuing the Mission

Nonprofit organizations, which account for about 13 percent of Minnesota’s economy, have also been devastated by the pandemic. A study from the Minnesota Council of Nonprofits found that nearly $1 billion in nonprofit revenue disappeared in April, an income collapse that pushed nearly one-third of all of the state’s nonprofit employees out of a job. “Nonprofits don’t generally have a lot of cash reserves even in the best of times, and nearly all of the organizations we’re seeing have lost major sources of revenue because they can’t hold in-person fundraisers or conduct other programs that bring in CONTINUED ON PAGE 20

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The Ultimate Stress Test CONTINUED FROM PAGE 18

revenue,” said Zach Tabatt, nonprofit development program officer for the Initiative Foundation. “But this loss of funding is happening at the same time that demand for health and social services is shooting up.” To support the region’s nonprofits, the Initiative Foundation launched the Central Minnesota Emergency Relief and Recovery Fund to raise additional private dollars. The Foundation also championed a first-ever Give at Home campaign, a statewide online fundraising effort powered by GiveMN that helped secure more than $5 million for organizations and schools. To fill the growing needs that the COVID-19 crisis fueled, the Foundation took a new approach to discretionary grant-making. “We’ve traditionally tried to make investments for the long-term to build nonprofit capacity, workforce development, strategic planning and other things that will bear fruit over time, but we’ve set those typical guidelines aside and shifted to meeting the community’s basic food, shelter and medical needs in the near term,” said Varilek. “That’s not normally our style, but we felt it was justified in these circumstances.” For instance, the Mille Lacs Band of Ojibwe and the Leech Lake Band of Ojibwe both received $15,000 grants to support food security within the tribal community, while Horizon Health in Pierz received a grant to provide food and technology connections for older adults living on their own during the pandemic. Grant funding has also helped nonprofits like Asamblea de Derechos Civiles launch new programs, including a Spanish language hotline based in St. Cloud that connects community members to food shelves, emergency medical care, COVID-19 testing and other relief programs. At the same time, the Initiative Foundation allowed current nonprofit grantees more flexible funding terms, “giving them permission to toss out their work plans and concentrate on keeping the lights on,” said Varilek. That license has helped organizations like the Boys and Girls Club of the Leech Lake Area adapt to the rapidly changing landscape, including closing their traditional after-school operations in favor of working with tribal entities to provide child care options for families of essential workers. “I’m really proud of the way we pivoted to provide help for so many families in need,” said the nonprofit’s executive director, Rebecca Graves. While keeping pace with new findings and changing protocols about face coverings and cleaning requirements has been a new challenge, she said, “our staff has been tremendous in spite of this huge transition. We’ve shifted gears in terms of how we’re providing service, but we’re still carrying out our mission in the community.”

Resources and Relief

Central Minnesota’s travel and leisure industry has also been significantly affected by the coronavirus crisis; nearly 46 percent of workers in the accommodations, food service and recreation sectors applied for unemployment benefits between March and May. “The Brainerd Lakes region’s hospitality market got hit hard in what was supposed to be our peak summertime season,” said Jeff Wig, Initiative Foundation vice president for entrepreneurship. Other sectors that have suffered through the pandemic are mining (with 33 percent 20 Initiative Foundation ifound.org

of the workforce applying for unemployment by the end of May), construction (29 percent), and health care and social assistance (26 percent). While those unemployment figures are without precedent, they might have been much worse were it not for the 13,700 Minnesota businesses that received financial support from the federal Paycheck Protection Program (PPP) launched in the wake of COVID-19. The program supported an estimated 711,000 jobs across Minnesota, with funding that is partially forgivable for many businesses. “A lot of small business owners in our region are very hesitant about taking on more debt, or have told us they’re keeping the money in the bank and are afraid to spend it,” Wig said. “That tells us we need to provide relief that isn’t just in the form of more loans.” Last June during the special session, the Minnesota Legislature approved $62.5 million for Small Business Relief Grants. Half of that money is going to Greater Minnesota via a lottery-style selection process that is managed by the Minnesota Department of Employment and Economic Development (DEED). The Minnesota Initiative Foundations are now managing the administration and distribution of these funds in their respective regions. “In a typical year we might award about $2.5 million in grants,” said Varilek. “But because of this crisis, we expect to be distributing up to $7.8 million in grants to Central Minnesota businesses this fall alone.” To help small businesses understand how these grants work, the Initiative Foundation produced multi-language (English, Somali and Spanish) videos, which were shared with the region’s immigrant business communities. While it’s too soon to know how these strategies will impact the region, early signs suggest that many small businesses are already starting to rebound. Barber shops and hair salons are booked again for socially-distanced services. Family farms and local food purveyors reported surprising gains during the summer, as consumers are discovering the benefits of buying directly from growers. Of the 130 businesses that were given loan deferrals by the foundation during the worst of the pandemic crisis, Wig reports that not a single business defaulted on their payments in July. That includes Mackbee and Lucas, who succeeded in opening the Flour & Flower Bakery in St. Joseph for take-out orders in June. Their pastries, breads and pies are so popular with the College Avenue crowd that their inventory is typically sold out by 10 a.m. The couple opened Krewe not long after, landing on the front of The New York Times food section in a feel-good story about their partnership, which is St. Joe’s first Black-owned business. “We’re getting so much support from the community it’s kind of amazing,” Mackbee said on a weekday in July, while he was trying to locate more patio furniture to accommodate guests who want to sit outside. With required reservations, face masks and social-distancing standards that keep the restaurant at 50-percent capacity, there’s no question that COVID-19 is forcing entrepreneurs like Mackbee to find new ways of doing business. “But if we can keep moving forward from here, we know there are going to be better days.” CONTINUED ON PAGE 22

FALL 2020

The Ultimate Stress Test CONTINUED FROM PAGE 20

CHARLES BLACK LANCE: ”Sitting down together even when we have differences is what democracy is all about.”

“ Everyone’s eyes are opened to what’s always been under the surface.” In the aftermath of the George Floyd killing, Central Minnesota reckons with the role race plays in our society. By Laura Billings Coleman

U.S. News and World Report recently ranked Minnesota one of the top three states in the nation for economic opportunity and upward mobility. But access to opportunity across racial and ethnic groups is taking on new urgency in the wake of the COVID-19 crisis and the growing Black Lives Matter movement. African Americans, immigrants, indigenous people and other communities of color have been especially hard hit by the pandemic, with both higher rates of serious infections and hospitalizations, and disproportionate jobless rates. A recent report from DEED found that half of African Americans workers in Minnesota have filed for unemployment since mid-March—double the jobless rate for white workers. In May, the police killing of George Floyd in Minneapolis brought these persistent disparities into stark relief, fueling protests around the world, and a deep reckoning for the state of Minnesota, where racial inequities are among the worst in the country.

“What’s happened in the wake of the pandemic has been an unprecedented stress test for the region that has revealed many of Central Minnesota’s strengths as well as the urgent work we still have to do, especially when it comes to widening access to opportunity and equality for people of color,” said Initiative Foundation President Matt Varilek. “The lesson of this crisis is that we’re seeing how interdependent we all are, and how critical it is to ensure that everyone in our region is included in a strong recovery.” Other community leaders agree. “COVID was already hard on people,” said Buddy King, one of the founders of Higher Works Collaborative, a nonprofit focused on connecting St. Cloud’s African American community with health, housing and employment resources. “But then you throw on the George Floyd murder and suddenly everyone’s eyes are opened up to what’s always been under the surface. It’s no longer a hidden thing, which may be why this

CONTINUED ON PAGE 48

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FALL 2020

Spark

generosity • opportunity • curiosity • innovation

To view the full Initiative Foundation 2019 annual report, visit ifound.org/about-us/annual-reports.

24 Initiative Foundation ifound.org

Our Numbers Sources of Funds: $19,823,988

2019

Uses of Funds: $7,236,346

2019

*Includes $31,469 in fixed asset investments.

Uses of Funds: A Snapshot ECONOMIC DEVELOPMENT, LOANS, INVESTMENTS

Economic Development & Lending

$2,511,928

anufacturing/ M Construction $590,000 | 19%

Inspire Local Ownership, Quality Jobs

ervice S $725,750 | 24%

etail/Wholesale R $310,922 | 10%

Investment Total:

E conomic Development & Lending Activities $615,256 | 20%

Alternative

$3,043,331

Agriculture $150,000 | 5%

Entrepreneurship Programs

$531,423 Initiators Fellowship $293,535 | 10% Enterprise Academy $237,888 | 8%

Housing

$120,000 | 4%

GRANTS, SCHOLARSHIPS & FELLOWSHIP STIPENDS Empower People Investment Total:

$1,895,868

artner Funds Grants P & Scholarships $1,237,603 | 65%

E conomic Development/ Entrepreneurship $177,581 | 10%

I nnovation Fund $343,184 | 18%

T hriving Communities Initiative $137,500 | 7%

* Excludes $519,000 in grant deobligations and repaid grant funds for our Healthy Lakes & Rivers program.

REGIONAL PROGRAMS

Create Thriving Communities Investment Total:

$1,158,386

Partner Funds $507,924 | 44% Thriving

Communities/ Early Childhood $270,417 | 24%

Endowment Value: 60.1 Million

Nonprofit

Organizational Development $201,690 | 17% Volunteers

in Service to America $178,355 | 15%

Total Assets: $81.8 Million

A complete audit report prepared by Schlenner Wenner & Co. is available upon request. For a summary of the Initiative Foundationâ&#x20AC;&#x2122;s impact on the region since inception, visit ifound.org/about-us/annual-reports.

FALL 2020

YOU Make All The DIFFERENCE Contributions from people just like you have positioned the Initiative Foundation to maintain its programs and services and to secure additional outside funding to address the sweeping social and economic effects of the COVID-19 crisis. Make your gift today. Use the enclosed envelope or visit ifound.org/give. To discuss detailed giving options or year-end donation strategies, contact Carl or Mike from our external relations team. We will be happy to assist you in planning your gift. Thank you for supporting Central Minnesota!

SUPPORTING EMERGING LEADERS

Investing in Child care solutions

Championing Community Causes

ECONOMY

Your support helps the Initiative Foundation align with local financial institutions to make specialized, job-creating financing available to Central Minnesota employers.

Carl Newbanks:

COMMUNITY

cnewbanks@ifound.org (320) 631-2042

Donors like you brighten the future of our communities, empowering our nonprofits and civic leaders to identify and enhance unique assets and plan for a greater tomorrow.

GENEROSITY

Your generosity inspires others to give: Every dollar donated to the Initiative Foundation returns an average of $3.77 in grants, loans and scholarships to the region.

Mike Burton: mburton@ifound.org (320) 631-2059

EVERY GIFT CAN BRING LASTING CHANGE. Gifts of $1,000 or more significantly impact the region, providing services and supports for emerging entrepreneurs, nonprofit organizations, early childhood programs, local businesses and more. Together, with recurring gifts of $25, $50 or $100, we will create lasting solutions for Central Minnesota. Visit ifound.org/give to make your gift. 26 Initiative Foundation ifound.org

As the END OF THE YEAR APPROACHES, You may be LOOKING FOR WAYS to SAVE ON TAXES and END THE YEAR WELL. OUTRIGHT GIFTS OF APPRECIATED ASSETS

LIFE INSURANCE GIFTS

CHARITABLE LIFE INCOME PLANS

CHARITABLE LIFE ESTATES

Gifts of appreciated assets such as securities or real estate are an excellent way to support the Initiative Foundation. These gifts can provide you with numerous benefits:

Making a gift of your old, unneeded, or obsolete life insurance policy can provide you with the following benefits:

If you own low-yielding assets and seek a higher income, a charitable life income gift such as a charitable gift annuity or charitable remainder trust is worth exploring. In exchange for your gift of cash or appreciated securities, you reap multiple benefits:

If your estate plans include leaving your residence (home, farm, vacation home) to charity, you may wish to create a charitable life estate arrangement. You can make a gift to us of your property today and receive the following benefits:

• Receive payments for your lifetime(s) • Generate a current income tax deduction • Bypass all or some of capital gains on appreciated assets • Enjoy increased financial security

• Current income tax deduction • Life use and enjoyment of the property • A lasting legacy to further our mission

• Receive an income tax deduction, based typically on the asset’s fair market value • Avoid federal and state capital gains taxes • Avoid the Affordable Care Act Medicare tax

• Receive a charitable income tax deduction • Reduce your taxable estate • Preserve your cash and savings

Contact us to explore customized giving options created just for you. You also can visit our website to access gift-planning guides, calculators and a library of information to assist in your gift-planning efforts. Visit ifound.org and select “Plan Your Gift” or contact a member of our external relations team.

405 First Street SE, Little Falls, MN 56345 | (877) 632-9255 | ifound.org This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.

FALL 2020

Become a Community Builders Circle member and

MAKE A LOCAL DIFFERENCE: The Community Builders Circle is comprised of businesses and individuals who contribute $1,000 or more per year to support the Initiative Foundationâ&#x20AC;&#x2122;s General Endowment or programs. When you become a Community Builders Circle member, you widen the circle of the Initiative Foundationâ&#x20AC;&#x2122;s work, driving economic progress and community vitality in Central Minnesota.

Support EMERGING LEADERS

Invest in EARLY CHILDHOOD

Lead

Your Community Builders Circle membership inspires others to give and multiplies the impact of your support.

Acknowledge

Gain special recognition in IQ Magazine, specialty publications, on our website and at Initiative Foundation events.

Help Our NONPROFITS

Celebrate

Experience the lifetime fulfillment of supporting initiatives that affect communities across Central Minnesota.

28 Initiative Foundation ifound.org

Champion COMMUNITY CAUSES

A Special Thanks to Our

COMMUNITY BUILDERS CIRCLE Members. Your Region. Your Initiative. Your Foundation. BUSINESSES

INDIVIDUALS

$2,000+

$1,000+

• Anderson Brothers

• American Heritage National Bank

Construction Company • Arvig Communication Systems • Bremer Bank • Clow Stamping Company • Compeer Financial • Connexus Energy • Consolidated Telecommunications Company • Crow Wing Power • DeZURIK, Inc. • East Central Energy • Falcon National Bank • Granite Equity Partners, LLC • Great River Energy • Long Prairie Packing Company • Minnesota Power Foundation • Schlagel, Inc. • Sherburne State Banks & Sentry Banks • Sourcewell • Stearns Electric Association • U.S. Bank Foundation • Wells Fargo Bank MN

• American National Bank

$2,000+

of Minnesota • BankVista • Benefit Innovations • BlackRidgeBANK • Cambridge Medical Center on behalf of Allina Health System • Citizens State Bank of Waverly • CliftonLarsonAllen LLP • Edelweiss Cabinetry • First Bank & Trust • First National Bank North • First National Bank of Milaca • First State Bank of Wyoming • Frandsen Bank & Trust • Harvest Bank • LINDAR / Avantech • Little Falls Area Chamber of Commerce • Marco Technologies, LLC • MINPACK, Inc. • Monroy Law Office, PLLC • Neighborhood National Bank

• NOR-SON, Inc. • Park Industries, Inc. • Pequot Tool & MFG., Inc. • Pine Country Bank • RiverWood Banks • Schlenner Wenner

& Co., St. Cloud • Stearns Bank NA • The Bank of Elk River • Todd-Wadena Electric Cooperative • Wadena State Bank • Widseth Smith Nolting and Assoc., Inc. • Wyoming Machine

• John E Babcock • Maggie & Matt Varilek

$1,000+ • Father Kevin Anderson • Anonymous Donor • Rick & Helga Bauerly

Family Fund of Central Minnesota Community Foundation • Gene & Kathy Bechtold • Dick & Mimi Bitzan Fund of Central Minnesota Community Foundation • Michael & Kathleen Burton • Lynn & Darren Bushinger • Linda Eich DesJardins & Joseph DesJardins • David & Kim Ellingson • Don & Deanna Engen • Kathy & Neal Gaalswyk • Don Hickman & Sandra Kaplan • Jo & Larry Korf • Joseph Nayquonabe & Christina Clitso-Nayquonabe • Martin Paradeis • John & Bonnie Schlagel • Steve & Leila Shurts • Kimberly & Denise Slipy • Charlotte Stephens • Ludmila Voelker • Kristi Westbrock & Mike Bjerkness • Jeff & Laurie Wig

Make your gift today. (877) 632-9255 | ifound.org 405 First Street SE, Little Falls, MN 56345

To make a pledge and join the Community Builders Circle, contact Carl Newbanks (cnewbanks@ifound.org; 320-631-2042) or Mike Burton (mburton@ifound.org; 320-631-2059), or visit ifound.org/give to give online.

As a 501(c)(3) nonprofit organization, your Initiative Foundation contribution is tax-deductible to the extent allowed by law. The Foundation owns and manages financial contributions for the benefit of Central Minnesota communities.

FALL 2020

Survival STRATEGY Small businesses are the economic engine of Central Minnesota. The Initiative Foundation is helping to see them through the challenges of the COVID-19 pandemic. By Gene Rebeck Photography by Michael Schoenecker and John Linn

REDHEAD CREAMERY: Arrayed by their granchildren, Linda and Jerry Jennissen (left), owners of Jer-Lindy Farms near Brooten, partner with Redhead Creamery, a cheese-making business launched by their daughter Alise Sjostrom and her husband Lucas.

30 Initiative Foundation ifound.org

"What the loans allowed me to do was to not make decisions based on, ‘Can I afford to do this?’ Instead, it allowed me to do what you always want to try to do as a business owner, which is, What’s the right thing to do, regardless of money?’"

For Alise Sjostrom, the first three months of 2020 brought a lot of life changes.

In January, she was awarded an Initiators Fellowship from the Initiative Foundation. The fellowship is a twoyear program that provides training, mentoring, funding and other support for early-stage social entrepreneurs in Central, Southwest and West Central Minnesota. And in February, Sjostrom gave birth to Conan, who joined his two older siblings in the Sjostrom family. Then came COVID-19. Sjostrom had been making and selling her own cheeses at Redhead Creamery, her Brooten-based company, since 2014. In mid-March, when the state government closed nonessential businesses, she feared Redhead Creamery also might close–perhaps forever. Small businesses like Sjostrom’s took a huge hit when the lockdown came. Locally owned and operated restaurants, bars, salons and fitness centers all were forced to close. And restaurants were a significant percentage of Redhead Creamery’s business. Sjostrom also had to shutter her farm-based store. The viability of Sjostrom’s business required her to think creatively and act quickly. Thanks in part to an emergency small business loan from the Initiative Foundation that tapped funds from the Minnesota Department of Employment and Economic Development (DEED), Redhead Creamery pivoted to a home delivery model by purchasing a refrigerated vehicle. “The loan really helped us get that up and going,” Sjostrom said. “We could get cheese safely to its location, instead of having to throw coolers in the back of our pickup.” Redhead Creamery was able to establish routes to

FALL 2020

SELF-CARE IN HARD TIMES: Kathy Bjork is the owner of The Fine Line Salon and Spa in Brainerd.

fans in the Twin Cities, Rochester, Fargo and Sioux Falls. The loan wasn’t the only help Redhead Creamery received, but it was crucial. And it’s the kind of assistance the Initiative Foundation has been able to provide to hundreds of regional small businesses to get them through the pandemic-driven economic slowdown.

IMMEDIATE ACTION

On the evening of March 16, Minnesota Gov. Tim Walz announced the closing of non-essential businesses. By March 18, the Foundation made the decision to offer loan deferments to any lendee who needed one, according to Jeff Wig, the Foundation’s vice president for entrepreneurship. Wig and his team sent emails to the Foundation’s 120-plus clients and offered to defer payments for three months. About 40 borrowers took up the offer. On March 23, the state of Minnesota announced it was establishing an emergency loan program through DEED for the types of businesses affected by the governor’s executive order. The program’s funds would be parceled out to a small group of nonprofit lenders throughout the state. The Initiative Foundation was one of those lenders. “We received our first application within 45 minutes after the

end of that news conference,” Wig recalled. “Then they came in fast and furious, sometimes up to eight or 10 an hour.” The Foundation pulled staff in from other parts of the organization to help manage and process the applications. Using a first-come, first-served process, the Initiative Foundation allocated 53 loans totaling $1.2 million. To qualify for the loan program, applicants needed to operate a Central Minnesota-based standalone business that was affected by the emergency order. The loan could cover three months’ worth of operating expenses during a partial shutdown, such as mortgage payments, utilities, insurance and a percentage of labor costs. Though the loans could be as much as $35,000, the average loan size was just over $20,000. “We made a good number of fairly small loans,” said Wig. One loan was for $2,500, which was to support a sole-proprietor hair salon. “This was meaningful money for them, even in small amounts.”

THE RIGHT THING

Businesses that received larger amounts also found that money meaningful. Scot Ziessman, who owns three Fantastic Sams hair salons in the region, was given DEED loans via the

“The pandemic will likely change how things are done for a very long time.”

CONTINUED ON PAGE 34

32 Initiative Foundation ifound.org

Survival Strategy CONTINUED FROM PAGE 32

Initiative Foundation for each location (Albertville, Clearwater and Monticello). The loans ranged from $20,000 to $35,000. “The loans allowed me to not make decisions based on, ‘Can I afford to do this?’” Ziessman said. “Instead, they allowed me to do what you always want to try to do as a business owner, which is, ‘What’s the right thing to do, regardless of money?’” His three shops shut down March 17 and would remain closed till June 1. “I started searching for products that I’d never had to look into before,” he said, mentioning face shields, masks and Plexiglas panels. Then there was hand sanitizer. Ziessman’s salons have always had plenty on hand. But when the pandemic hit, prices skyrocketed. “The first time I saw a gallon of hand sanitizer available, it was $70,” he said. “ It was ridiculous. But I bought three gallons because I didn’t know whether I’d be able to find hand sanitizer again for another month.” Ziessman says the loan money helped the business get ready to reopen in the right way, which required more than following state law and Board of Cosmetology protocols. “We had to change from non-appointment based, which was our business model,” Ziessman added. His Fantastic Sams locations also had to institute different cleaning processes. “Hair salons are always pretty darn good at cleaning, but we took it to the next level.” Not surprisingly, the first month after reopening was extremely busy. “People wanted to look how they used to,” Zeissman said. “We had some amazing before-and-after photos.” His staff also repaired the damage from numerous home haircuts. All told, Ziessman’s team was happy they were able to provide a semblance of normalcy to their clients. Business at the salons did slow down after that initial burst of pent-up demand. “Industry-wide, hair salons were down in July about 25 percent,” Ziessman said. “That additional money has helped us ride the tide of what’s going on now.” Another hair-care business that has benefited from the emergency loan program is The Fine Line Salon and Spa. Kathy Bjork has owned and operated the salon, which is located in a historic three-story house in Brainerd, for nearly three decades. But even that longevity didn’t guarantee its survival during the three months of the COVID-19 lockdown. Bjork’s husband, Rick, took care of the paperwork for a loan The Fine Line received in April. He was offered guidance from Initiative Foundation Finance Specialist Carie Verley.

“It really helped save us,” said Rick, who also runs his own retail business, The Gallery of Brainerd. The loan funds helped cover overhead and payroll for The Fine Line, which employs 18 people, for what he described as “a long, long three months. The pressure and the sleepless nights—we weren’t sure how we’d get through everything.” But they did get through—The Fine Line reopened June 1. Business is “not back 100 percent, but it is steady,” Bjork said. Both he and his wife are delighted that it’s back, period.

MORE HELP COMING

In July, DEED once again tapped the Initiative Foundation, this time as a recipient of state funds from a new $62 million Small Business Relief Grant program. At the time of publication, the Foundation was in line to award up to $7.8 million in emergency small business relief grants to more than 765 regional small businesses. Priority was given to any business with fewer than 50 employees operating at a reduced level because of the governor’s May 15 executive order. This includes retailers and other establishments not covered in the governor’s earlier orders. All told, the grant and loan programs the Initiative Foundation has been handling will aid over 1,000 businesses. The support Sjostrom received has helped her take advantage of new opportunities. Despite the pandemic-induced stresses and restrictions, Redhead Creamery has continued to grow. The company has re-established sales to restaurants and retailers, even as it continues its residential deliveries. Though Sjostrom’s husband, Lucas, has been doing all that driving, he’s able to use the drive time to conduct phone calls for his work as executive director of the Minnesota Milk Producers Association. Redhead Creamery also continues to sell its products online, and it has started carrying other Minnesota-crafted cheeses to help get those dispersed across the state. In mid-August, Sjostrom and her staff were working on holiday gift packages. “We’re seeing a lot of businesses struggling, and we’re actually adding on to keep up with growth,” she added. “We’re feeling very fortunate to be in that position.”

SUCCESS STORY: At a time when many businesses are struggling, Redhead Creamery continues to adapt and grow.

34 Initiative Foundation ifound.org

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FALL 2020

CRISIS IN CARING When COVID-19 threatened the child care sector, the Initiative Foundation created an emergency grant program to help. By Andy Steiner Photography by John Linn and Michael Schoenecker

36 Initiative Foundation ifound.org

JENNIFER CHILTON: ”Families really needed me to stay open.”

Fifteen years ago, when Jennifer Chilton opened Jenny’s Daycare, her home-based child care center in Finlayson, she never thought that her thriving Pine County business would be threatened by a global pandemic. But that’s what happened following Minnesota Gov. Tim Walz’s stay-at-home order to flatten the curve of COVID-19 infection. “A lot of my parents got laid off or furloughed at work,” Chilton explained. “When they’re not working they’re not bringing their kids to me. So I lost a lot of my kids pretty quickly.” Chilton couldn’t expect out-of-work parents to pay for daycare, but the losses hurt her bottom line: “Those parents felt bad. And I couldn’t make them pay for their spots when they didn’t have work.” At the same time, essential workers relied on Chilton’s center to stay open so they could work at their jobs in nursing homes, at the local hospital and the Minnesota Correctional Facility in nearby Moose Lake. Chilton felt like she was being pulled in two directions. “But we are all in this together— we are all losing money. And other families really needed me to stay open.” The personal toll was undeniable. Revenue from the center makes up a significant portion of the Chilton family’s annual income. With fewer kids to care for, “we were struggling,” she said. “We had to call the bank and say we couldn’t make some payments.” Because she’s self-employed, Chilton wasn’t eligible for unemployment. “Daycare providers don’t get unemployment,” she said with a sigh. “So we didn’t have that extra $600 a week from the government.”

WHEN THEY’RE NOT WORKING, THEY’RE NOT BRINGING THEIR KIDS TO ME.

FALL 2020

FULFILLING A NEED: As essential workers, Stephanie and Caleb Silgjord of Grey Eagle relied on their care provider so they could keep showing up for their jobs.

The situation was growing more dire by the day when another provider told Chilton about a special Initiative Foundation grant program to help regional child care providers weather the COVID storm until Child Care Aware, a statewide agency, could distribute some $30 million in child care support funds authorized by the Minnesota Legislature. Chilton quickly filled out an application and was awarded a onetime grant of $1,000. The money, which came in a matter of days, was just what she and her family needed to make ends meet and keep her daycare in business. The Initiative Foundation grant—one of 111 disbursed to home-and center-based providers throughout Central Minnesota—was used to cover bills and expenses, including filling her home’s propane tank. “The Initiative Foundation grant was amazing,” Chilton recalls. “Any amount of money helped.”

IMMEDIATE RESPONSE

The philanthropic world doesn’t always turn on a dime, but the six Minnesota Initiative Foundations rolled out their child care provider grant program in a matter of days after Gov. Walz asked them to carve out some of their own grant money to serve as a lifeline until the Minnesota Legislature could approve a more robust funding package for child care grants. “It was the first weeks of the pandemic where many providers were suffering the effects of the emergency stay-at-home orders and many households were keeping their kids at home,” said Don Hickman, Initiative Foundation vice president for community and workforce development. “Whether due to business shutdowns, job losses or remote work, COVID-19 really created a tremendous disruption. The profit margins in child care are razor thin, and our region—which already is in acute child care shortage—can’t afford to lose any providers.” The Initiative Foundation program was designed to parcel out small grants from a fund of $153,500. Word was quickly sent out to

local providers, and the response was immediate and overwhelming. “In a matter of days, we had more than $2 million in requests from 800 providers, both home daycares and centers,” Hickman said. “The max they could request was $3,000. It was painful to decide who got the first grants.” Initiative Foundation staff used a set criteria to determine how grants were awarded. Because the program was designed to provide COVID relief, “The primary factor was the number of children of essential workers that the provider was caring for paired with geographic diversity. We felt the need to spread it over all the 14 counties that we serve in Central Minnesota.” Clare Sanford, government relations chair for the Minnesota Child Care Association, was impressed with how quickly the Minnesota Initiative Foundations responded to the industry crisis. “The [Central Minnesota] Initiative Foundation was out in front even of the state of Minnesota,” she said. “They recognized right away what this pandemic would do to our already in-crisis child care system. This money came together super quickly. They got applications out super quickly. And they spent the money super quickly.” The extra money was essential. “There’s no doubt that every business in the state is going through a tough time, but not every business has been asked by the governor to stay open to support the emergency response,” said Sanford. For many of the region’s essential workers, the child care grants saved the day. Stephanie Silgjord of Grey Eagle is a social worker who provides therapy to young survivors of sexual violence in the Todd County region. Her husband Caleb works in law enforcement. The couple relies on their home-based provider, Blue Goose Development, to care for their two young children so they can keep showing up for their jobs. Both of Silgjord’s children—a first-grader and a preschooler— were enrolled in part-time child care when the pandemic hit; when the governor shifted the state’s schools to distance learning, her provider requested and was awarded an emergency grant from the CONTINUED ON PAGE 40

38 Initiative Foundation ifound.org

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Crisis in Caring CONTINUED FROM PAGE 38

THERE’S NO DOUBT THAT EVERY BUSINESS IN THE STATE IS GOING THROUGH A TOUGH TIME, BUT NOT EVERY BUSINESS HAS BEEN ASKED BY THE GOVERNOR TO STAY OPEN TO SUPPORT THE EMERGENCY RESPONSE. Initiative Foundation. “When distance learning happened in April, we were given the responsibility to educate our children,” Silgjord recalled. “With both of us working split shifts and full-time, I don’t know how long we would’ve been able to make it work.” Thanks to the grant money, Silgjord’s provider was able to hire an assistant. “They were able to sit down with our kids based on age level and help them do their homework assignments,” Silgjord said. Going to work and caring for kids during a pandemic was something Silgjord and her husband couldn’t do alone. “Without that extra help at daycare, I don’t know how we would’ve done it.” Stephanie Hoehle, a single mother of three from Little Falls, is also an essential worker. When COVID-19 hit Minnesota, her child care center closed for two weeks. She had to scramble to find temporary care so she could continue her work installing fiber optic lines for military and space systems. An Initiative Foundation grant made it possible for Hoehle’s center—Big Adventures Child Care Center in Little Falls—to re-open, even though some parents had decided to keep their children at home. An additional Child Care Aware grant has helped to keep the center running since then. “If they hadn’t opened back up, I don’t know what I would’ve done,” Hoehle said. “The grant made it possible for my provider to stay open, for my kids to get back to the center and for me to get back to work. It was a real lifesaver all the way around.”

A PRE-EXISTING CONDITION

The region already was experiencing a child care crisis before the COVID-19 pandemic emerged. Pre-pandemic, “our region had a greater gap in the number of child care slots needed than are available,” said Hickman. In fact, a Center for Rural Policy study found that Central Minnesota had 29,253 child care slots but needed 43,551 to meet regional demand. “We were leading Greater Minnesota in job creation but we didn’t have enough child care. 40 Initiative Foundation ifound.org

Those are two trends headed in the opposite directions. You can’t attract more workers and have fewer child care options.” The turmoil created by the virus made the region’s child care shortage even more pronounced and clarified the urgent need to redesign the existing system once the pandemic passes. “A lot of wise people are saying we don’t want to go back to ‘normal’ because that wasn’t working for many families and child care providers in the first place,” Hickman said. “Parents struggle to afford it, yet providers are making very little profit. Serious change needs to happen.” Though the crisis illustrated that the region’s child care system was lacking, it also highlighted the central role that providers play in keeping the economy rolling in good times and bad. “There has never been a time that was more clear that you can’t keep the economy going without child care,” Hickman said. In recognition of the central role that child care providers play in the state’s economy, the Minnesota Department of Education in August supported the Initiative Foundation with an additional $416,000 to be awarded to the early childhood sector. “The grants are designed to fund a range of activities, from distance learning and summer programs to programs that support the mental health of child care providers, training on how to talk to kids about the pandemic, and basic supplies to clean and sterilize childcare facilities,” Hickman said. The Foundation awarded $140,000 in August. A second round of funding will take place at the end of 2020 and a third round early in the spring of 2021. Chilton says she’s pleased to hear that more support will soon be available. Though parents are slowly bringing their children back to Jenny’s Daycare, it will be a while before she gets back to prepandemic enrollment levels. “I’m filling back up,” she said. “But there still are days where I’ll have just five or six kids. Some days I’ll have more. It’s still not normal. So any support is welcome. I don’t want to close—and I don’t want to leave my families with nowhere to turn.”

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Please make your tax deductible donation payable to our 501 C 3 partner â&#x20AC;&#x201D; the Brainerd Lakes Area Community Foundation, c/o Friends of Nisswa Lake Park. Mail to: Friends of Nisswa Lake Park PO Box 262, Nisswa, MN 56468 To learn more about this project or volunteer, call (218) 963-4444. FALL 2020

for our friends People across Central Minnesota are experiencing food insecurity due to the COVID-19 pandemic. Hereâ&#x20AC;&#x2122;s what local organizations are doing to meet the need.

Photos courtesy of Wright County Community Action, Maple Lake

NEIGHBORLY NOURISHMENT: Trailblazer Transit driver Sue Ditter (left) and Wright County Community Action volunteer Aleta Isaacson deliver food to Lois and Roy Mueller of Maple Lake Township.

42 Initiative Foundation ifound.org

By Stephanie Dickrell

contagious and deadly virus has made its way to your city. Schools go online. Other public places, including restaurants, close in a statewide effort to slow infection rates. You have been placed on furlough and your spouse is working remotely. This means both of you are at home, 24/7. And so are your kids, who normally get their breakfast and lunch at school. You are out of flour and eggs but those items are in short supply, which is almost beside the point because you are having a hard time paying your food bills. This is the situation facing hundreds of thousands of Minnesotans as the COVID-19 pandemic takes root across the state, where an additional 275,000 people—112,000 of them children—report challenges

affording food, according to Second Harvest Heartland, a food bank and hunger relief organization that serves Minnesota and Western Wisconsin. Before the onset of the pandemic, one in 11 Minnesotans experienced hunger. Today, that number is one in eight. Of all social needs that have been laid bare by the coronavirus, none is as glaring as the importance of healthy and reliable food sources. In response to the sudden food shortage, individuals, businesses, service organizations and nonprofits—including the Initiative Foundation—have mobilized to get food to people at a time when food banks and food shelves are facing up to a 65 percent increase in demand. “It is crucial to get emergency funding to the people and organizations that are on the front lines of food production and distribution so that they can feed those in need,” said Don Hickman, vice president for community and workforce development at the Initiative Foundation. To help in that effort, the Foundation quickly changed the way it distributes grants and funding. Traditionally, Initiative Foundation grants of up to $2 million annually have focused on innovative programming, strategic planning and other capacity-building projects for nonprofits, schools and local units of government. When the pandemic hit, the Foundation adjusted its priorities

“

The response, the generosity — it didn’t surprise me. Our community

”

is there.

FALL 2020

“

Seniors could remain independent by learning how to shop online for delivery or

”

contactless pickups.

PROCESSING PRODUCE: Jeff Schober (left) of the Big Lake Food Shelf and Joel Klaverkamp of Wright County Community Action partner with local volunteers during an August produce drop in Big Lake.

to focus on direct services, including food distribution and, thanks to local generosity and a host of funding sources from outside the region dramatically increased its grants distributions. In Sherburne County, Community Aid of Elk River (CAER) drew on its local expertise to quickly adapt existing services, including a food shelf, to help children and seniors. With a $10,000 grant from the Initiative Foundation, CAER pushed up the start date of Kidz Kitz, its annual summer food program, to align with the closing of schools in March. The shift in Kidz Kitz distributions added 11 weeks of food for families. The program distributed nearly 2,700 Kidz Kitz, totaling more than 65,700 pounds of food, according to Heather Kliewer, CAER’s executive director. The kits include breakfast and lunch items for two kids, every week. Each is designed to meet nutritional standards, including fresh fruit and vegetables when possible, grains, protein and dairy. “The kids are so excited to look through the box,” said Kliewer. “They want to know ‘What did we get this week?’” In Wright County, Wright County Community Action (WCCA) received a $5,000 grant from the Initiative Foundation to expand its frozen meal program to 44 Initiative Foundation ifound.org

quickly get food to senior citizens who were previously independent and able to shop for and prepare their own meals. Since March, more than 1,350 new seniors have applied for services. The program delivered more than 48,000 frozen meals in that time. WCCA staff also discovered many of these people could remain independent by learning how to shop online for delivery or contactless pickups. “It helped to have a bridge to help seniors get self-sufficient,” said Jay Weatherford, WCCA’s executive director.

CAER and WCCA adjusted their food shelf programs, implementing curbside pickups and order forms. They also worked with other nonprofits to do large produce drops to reach as many people as possible. CAER distributed 20,000 pounds of food in emergency boxes of produce to 335 households in May alone, with help from Second Harvest Heartland. The number of

EXPANDED SERVICES

new households served doubled to 470 this year, from 235 in 2019

Those early food-related successes lead to other services. In Wright County, staff and volunteers also increased their health and reassurance calls to seniors. They check in, ask about health, food, money, home and safety—and sometimes just listen. Since March, they’ve made more than 1,500 calls each month, averaging more than seven minutes per call. WCCA callers log information so the organization can track seniors’ needs and spot trends over time. “With seniors… one week, everything is going great [and] the next week, it’s panic because of a health or money problem,” said Weatherford. “They’re frightened about getting the virus.” To respond to these concerns, both

CONTINUED ON PAGE 46

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Businesses, community members and nonprofits across Central To help, donate at: Minnesota also have stepped up, offering everything from • ifound.org/give kitchen and freezer space to donations • gmcc.org/donate of fresh produce. The Sherburne County • 4giving.com/donation/0270 Fairgrounds, for example, became a place • wccaweb.com for nonprofits to distribute food and • caerfoodshelf.org services. School districts notified families you or someone aboutIfCAER’s services you andknow also allowed needs help food, in school the nonprofit to accessing distribute food visit 2harvest.org/who--howparking lots. “Itwe-help/how-to-get-help made it feel a little more or normal,” Kliewer said. In fact, lessening the stigma of contact your local food shelf. getting help became a priority. For example,

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FALL 2020

Food for Our Friends CONTINUED FROM PAGE 44

new households served doubled to 470 this year, from 235 in 2019. And families don’t have to show bank statements or unemployment checks to prove they’re in need.

COMMUNITY PARTNERS

“ “

Businesses, community members and nonprofits across Central Minnesota also have stepped up, offering everything from kitchen and freezer space to donations of fresh produce. The Sherburne County Fairgrounds, for example, became a place for nonprofits to distribute food and services. School districts notified families about CAER’s services and also allowed the nonprofit to distribute food in school parking lots. “It made it feel a little more normal,” Kliewer said. In fact, lessening the stigma of getting help became a priority. For example, food shelf deliveries are designed to look the same as grocery delivery services. WCCA also has benefited from numerous community partners, including the Waverly Cafe in Waverly, which paid its staff to produce senior meals, offered catering expertise and the use of their commercial kitchens. Another local business, Untiedt’s Vegetable Farm, donated vegetables for senior meals and other people needing food. In August, the farm donated more than 1,100 bushels of fruit and

vegetables—anything from cucumbers to cauliflower to cantaloupe. It also delivered more than 650 boxes of fresh farm produce in August to other distributors working to alleviate hunger. The nonprofits also learned new ways to do business. WCCA distributed more than 35,000 meals since early April, via volunteers riding on Trailblazer Transit public buses.

SILVER LININGS

While the pandemic has put stress on these nonprofits, it has also brought new insights that will help them going forward. Today, more seniors in Wright County now know about WCCA and how it can help. “When this first took off, you wouldn’t believe the ride,” said Weatherford. “We had 60 or 80 applications coming in a day.” Weatherford said people can call WCCA about any challenges they are facing. If WCCA can’t help, they’ll find someone who can. In addition, the need to understand technology and how to use smartphones will only increase for the region’s seniors. The vital role that volunteers play was only underscored by the pandemic. “The patience of everybody, families and donors alike, staff and volunteers … they all know this is something we have no control over,” Kliewer said. “The response, the generosity — it didn’t surprise me. Our community is there.”

Before the onset of the pandemic, one in 11 Minnesotans experienced hunger. Today, that numberis one in eight.

”

The goal is to better serve people by going directly to the people in need. When Greater Minneapolis Community Connections (GMCC) received an anonymous $500,000 gift to help rural food shelves in Minnesota, the nonprofit approached the Initiative Foundation for help distributing the funds. “We wanted to work with partners in the region on how to support local farmers and connect them to markets, and how to connect the food shelves to the supplies that they need,” said Adrienne Dorn, GMCC’s executive director. GMCC found a ready partner in Sprout, a marketplace, food hub and kitchen in Little Falls. The nonprofit aims to connect and strengthen the local food system as a regional asset by giving people easier access to healthy foods through cooking classes, communitysupported agriculture programs and nutrition

46 Initiative Foundation ifound.org

education. Sprout also has experience working with people who are food insecure, including low-income veterans, people who are in recovery from addiction and people living with mental illness. GMCC contracted with local people to go into their communities and talk to friends, family, coworkers and neighbors about the challenges and gaps they faced accessing food. Staff from Sprout and GMCC also did in-depth interviews with food shelves and other organizations. They then identified common barriers and potential next steps. For example, a single mom with two children crying in the next room probably won’t spend two hours preparing fresh, local food. The solutions needed to be useful to the people using them. “The goal is to better serve people by going

directly to the people in need,” said Zach Tabatt, nonprofit development program officer at the Initiative Foundation. The groups found that a relationship between a local farmer and food shelf volunteer can make a difference. So can asking a local service club to deliver food or improve food shelf locations. Still, barriers to food access remain, including transportation. With little to no public options, people in Central Minnesota have to rely on cars—which are costly and come with ongoing expenses—or the generosity of others. Where available, Tabatt said, using rideshare companies such as Uber and Lyft to deliver food is one possible solution. Other options include transportation services for low-income people by groups like Tri-CAP, which operates in Benton, Sherburne, and Stearns counties.

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The Ultimate Stress Test CONTINUED FROM PAGE 22

moment in time feels different.” King is a community partner to the Initiative Foundation’s Enterprise Academy, a program that provides technical training, lending assistance and business plan mentorship to entrepreneurs from underserved communities. It’s critical work in Minnesota, where racial disparities have long been among the nation’s worst, with nearly 32 percent of Black people in the state living in poverty—a rate four times that of white people. Though nonwhite workers have been vital to Central Minnesota’s economic growth since 2000, filling an additional 10,633 jobs in the region, or about 18.4 percent of new jobs added, according to a 2016 DEED report, people of color haven’t participated in the benefits of that growth at the same rate as whites. African Americans have the highest unemployment rate in the region—16 percent, which is more than three times the rate for whites. Meanwhile, median income for Black households in Central Minnesota was $20,774—less than a third that of white households. Similarly, poverty rates among Native Americans and Latinx in the region are more than double that of their white counterparts.

Charles Black Lance, Trio Programs Director at Central Lakes College and a Trustee of the Initiative Foundation, says the current moment has highlighted—sometimes painfully—how much work there is still to be done to advance diversity and equity in Central Minnesota. Talking truthfully about white privilege and systemic racism is not simple in communities that are overwhelmingly white, said Black Lance, who is a member of the Brainerd Public School board and an enrolled member of the White Earth Nation. He says his big frame and long black hair have made him a target for racial profiling in the past. This summer, when Black Lives Matter supporters in Brainerd clashed with protesters with Confederate flags, “It was surreal for me—I know people on both sides, I love people on both sides. But sitting down even when we have differences is what democracy is all about,” he said. “There are going to be growing pains, but I’m willing to go through the discomfort if it means leaving something different for our youth.”

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48 Initiative Foundation ifound.org

COVID-19 IMPACT UPDATE

Since the onset of the pandemic...

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Businesses financially supported

$1.2 million in new loans: $2.85 million in adjusted loan terms

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The COVID-19 pandemic has taken a toll on many industries throughout Central Minnesota. “Our revenue went to zero practically overnight, at a time of year that is typically our busiest,” said Ian Ulrich, director of sales and marketing at The Teehive (theteehive.com), an apparel printer and decorator in Baxter. But with crisis also comes opportunity, and local businesses showed creativity and resilience in fighting for their and their employees’ safety and livelihoods. After revenue projections plummeted, the majority of The TeeHive’s workforce was laid off. But through a series of community connections and creative thinking, the company pivoted from creating dance costumes and custom apparel for sports teams to masks and isolation gowns. As a result, they’ve brought back nearly all of their employees. Wyoming Machine (wyomingmachine.com), a sheet metal fabricator that’s headquartered in Stacy, was watching COVID-19 events closely when it got an order for wear plates that was double their typical annual order volume. “We didn’t know that the wear plate we manufactured ended up in medical ventilators!” said Traci Tapani, the company’s co-president and the chair of the Initiative Foundation’s board of directors. At LINDAR (lindarcorp.com), a plastic thermoforming company in Baxter, operations expanded from food packaging, paint products and commercial agriculture and industrial equipment to face shields. “We were suddenly making 15,000 – 20,000 face shields a week and couldn’t keep up with demand,” said Don Gaalswyk, manufacturing manager. We checked in with these three business leaders to learn more about how the pandemic reshaped their businesses. 50 Initiative Foundation ifound.org

Wyoming Machine •V ENTILATOR VALUE Wyoming Machine’s wear plate is a small but important part for ventilators. “It’s a fairly simple part that looks like a washer, but it’s made out of a specialized aluminum,” explained Tapani. “It’s about the simple parts that come together to make complicated things.” Employees churned out about 60,000 wear plates in 60 days, many times the number they would normally produce in a year. “Our employees that worked on it took pride, knowing we were contributing,” said Tapani. •P UBLIC PRAISE Country Music Television heard about Wyoming Machine’s work and included a few employees in a TV special that honored “everyday heroes.”

LINDAR •C ROWNING ACHIEVEMENT At the start of the pandemic, LINDAR used a face shield design that included an elastic strap. When elastic became difficult to source due to demand, an employee suggested a new design based on a surprising idea: the Burger King® crown. The paper crown wraps around the head, with one end of the crown sliding down into a slit on the other end. LINDAR redesigned the shield’s strap to be plastic. •J OB OPPORTUNITIES LINDAR’s equipment was wellsuited to making face shields, but they are a labor-intensive product where workers apply a foam forehead pad by hand, bag the shield and add labels. “We’ve added 20 jobs and demand still outpaces our capacity,” said Gaalswyk.

The Teehive •M AKING MASKS After contacting hospitals to ask how it could help, The Teehive turned its apparel expertise to face masks. Lakewood Health System sent a pattern for non-surgical masks and, after approving The Teehive’s samples, immediately ordered 1,000. Ulrich said they can cut up to 30,000 masks per day. •G OOD GOWNS The Teehive also expanded its offerings to reusable, washable isolation gowns. After many tests to ensure the material didn’t overheat the wearer, the gowns are now made of a lightweight polyester fabric with a silver anti-microbial additive. •C REATIVE SOLUTIONS As an apparel shop, The Teehive is well-equipped to produce masks and gowns. One machine lays a gown or mask pattern on top of up to 100 layers of fabric, and a small knife cuts them out automatically. “When we cut gowns, we use the excess fabric up the sides to lay out the mask pattern,” said Ulrich. “That sort of efficiency helps us keep price points down.” •P ROBLEM-SOLVING PRIDE When the pandemic hit, Ulrich said the company had a choice. “We could hide or we could figure it out together. We’re extremely proud to be able to help.”

FALL 2020

where’s IQ?

THINK YOU KNOW? Send your best guess to IQ@ifound.org by Nov. 16, 2020. Three winners will be chosen, at random, to receive a $25 credit to apply toward their favorite Initiative Foundationhosted Partner Fund. HINT: A chair large enough for Paul Bunyan greets visitors to this tourist town with its fishing-bobber water tower. Congratulations to everyone who correctly recognized the statue of Karl and Kristina Oskar in downtown Lindstrom, Minn. Norma Anderson, Gail Deboer and Randy Ferkin were the lucky spring 2020 winners of the “Where’s IQ” contest.

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