SBA Working Capital Increases Midwest Exporting Capabilities

Situation:

Minnesota-based Fairway Dairy and Ingredients LLC, a leading seller and buyer of dairy commodities (cheeses, milk powder, whey, butter and dairy proteins) in the Upper Midwest, was established in 2002 by brothers John and Thomas Beatty. From a young age, the brothers found interesting ways to make money - from lemonade stands to selling sunflower seed starts to passing motorists. After college, they combined their experience to make money together with Fairway Dairy. The company had a rapidly growing animal feed division, and began looking at expanding via exporting, as they had done some indirect exporting to Asia in the past with agents.

How the SBA helped:

To support its growth, Fairway Dairy needed an additional funding source that wouldn’t interfere with its domestic business. To do this John and Tom began talking to their banker, Lowell Collman at Citizens Bank Minnesota, who introduced them to SBA Regional Export Finance Manager Carlos Sosa and Denis Griffin, ExIm Bank director in Minnesota. Together they helped Fairway Dairy access better borrowing terms and lower interest rates on an Export Capital Line and export insurance as well. 

Impact/Outcome:

“SBA and ExIm Bank have given us the confidence we needed to boldly step into the export market,” said John Beatty, co-owner of Fairway Dairy & Ingredients LLC. “Leveraging Carlos’ experience has been invaluable. In addition to the financing, we’ve learned about the hang ups others have faced exporting, as well as the opportunities others have jumped at.”

In 2017, most of the company’s export sales were indirect. Fairway Dairy projects 2018 direct export sales, primarily to Asia, to triple from the prior year. The new SBA export line of credit will open up their domestic line of credit (which had been tapped by export orders) and allow them to create one new job and support nine existing jobs.

Trade Acceptance Group, TAG, a Minneapolis based export credit insurance agency and SBA resource partner, referred Fairway Dairy & Ingredients LLC to the SBA and Ex-Im Bank.

Company Name: 
Fairway Dairy and Ingredients LLC