June 30, 2022
Hannibal, MO. – Corey Mehaffy, Executive Director of the Hannibal Regional Economic Development Council (HREDC) announced today that the Board of Directors of the Hannibal Industrial Development Company (HIDC) approved a small business loan for a new farm-to-table butcher shop. Langhorne Meats and Provisions, Hannibal’s premier source for locally raised beef, lamb, pork and poultry, was approved for a loan to assist with planning and design services.
According to Langhorne owners Nikki Barr and Trevor Schultz, the company has purchased the building at 300 Broadway in downtown Hannibal and plans to revitalize the historic structure to create a high-end farm-to-table butcher shop. Barr added, “Armed with a generous amount of expertise, passion for supporting local agriculture and continued community support, our proposed project is certain to be a success.”
Barr went on to say, she has never witnessed a more opportune time for the small-scale, locally produced food sector to flourish. Barr added, “The pandemic has exposed the vulnerabilities of the commercial agriculture sector, and while grocery stores struggled to keep product on the shelves farm-to-table butcher shops like the one we are proposing have thrived”, said Barr.
According to Barr, it has been almost two years since the pandemic hit and this trend continues to grow. Not just because consumers were turned on to the quality and transparency of sustainably produced meat, but they realized they could afford it. Grass-fed, locally produced and pasture-raised, were once words that conjured up a hefty price tag in the minds of consumers. But the price increase of commercially produced meat due to labor shortages and transportation costs has leveled the financial playing field for sustainably produced meat, making it more affordable than ever to shop local. Being on par pricewise with the grocery store has been a big win for small-scale meat producers. To ensure continued success they must face their next biggest challenge, availability.
HREDC’s Entrepreneurship Specialist Maria Kuhns said that the SBDC office has been working with Nikki and Trevor for over a year and a half on the project. Kuhns added, “We’ve been working on the business plan, financial projections and the financing stack. In addition, Nikki and Trevor have been attending our Ignite events, networking with other entrepreneurs and service providers in the area.”
According to Mehaffy, in February of 2022, the HIDC Board of Directors officially adopted a new Revolving Loan Fund Program in support of small business. Established in 1952, HIDC is designed to provide gap financing to new or expanding businesses, which will induce participation from private lenders. Loans may also be utilized for retention efforts. Businesses located in Marion and Ralls Counties are eligible for loan assistance.
The purpose of the new RLF Program to attract and assist in the startup of new businesses in Marion and Ralls County. Additionally, the loan will provide funding for small growth projects as well as gap financing for larger projects. The goal of the RLF is to assist in economic development through providing access to funds for clients who do not fit the traditional model of private bank loans.
According to Mehaffy, as a part of the economic development efforts to support small businesses in Marion and Ralls Counties, area businesses and citizens have purchased stock in HIDC. Mehaffy added, “Those cash contributions are used to establish a Revolving Loan Fund (RLF) for gap financing. The HIDC disburses money in the form of loans at interest rates, which are at or below market rate to small businesses or to businesses that cannot otherwise borrow capital. As the loans are repaid, the grantee uses a portion of the interest earned to pay administrative expenses and adds remaining principal and interest repayments to the RLF’s capital base to make new loans.”
Recent efforts to attract new investment have produced good results with additional stock purchases and future commitments of over $60,000.00. HNB President and HIDC Board Member John Zimmer added, “Nikki and Trevor’s project is exactly the type of project the HIDC Board has envisioned supporting. The project will revitalize a historic facility, create a new business, create new jobs and provide a much-needed service to the community, and the region.”
HIDC Board Member and Hannibal Regional President and CEO Todd Ahrens discussed why he supports this new program for small businesses. Ahrens said, “HREDC’s efforts to expand and grow opportunities for business start-up and expansion has a positive impact on our region as a whole. We feel it is important for our region and various stakeholders to work together to promote economic development because by doing so we will create a stronger, more vibrant community.”
Barr added, “This loan from HIDC is a catalyst for our project and will allow us to move forward with the planning/design phase and ultimately, when our bank loan is approved, move immediately into the construction phase. We are grateful to the HIDC Board for their approval of this loan. We would encourage other small businesses to reach out to HREDC to take advantage of the resources that are available to assist them.”
Barr and Schultz indicate that they will be launching a monthly meat share program in the near future but do not plan to open the storefront location until sometime in 2023.
The Hannibal Industrial Development Company administers the loan program by accepting applications, working closely with the HIDC Board of Directors, servicing loans, monitoring the progress of the program and reporting to the HIDC Shareholders. For more information, visit https://hredc.com/resources/hannibal-industrial-development-company/
HREDC works to promote financial investment in Hannibal, and Marion and Ralls Counties. For more information on the organization, please visit their website at www.hredc.com.