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Borrower Spotlight: Dugdale Foods

Since its launch as a small family business in 1975, Dugdale has grown into a leading wholesaler of fine meats, seafood, poultry, and other food products across the Midwest. Dugdale offers more than 1,500 food products to restaurants, grocers, universities, healthcare centers, and other institutions. When Scott Weaver took over the business from its original founders in 2014, he was committed to providing the same level of excellent service that clients had received for decades. Throughout its more than 40 years in business, Dugdale has called Indianapolis home—establishing roots in the local community, employing local residents, and fostering long-term relationships with its clients. When Dugdale needed affordable financing to continue to grow its operations, it received a $2 million loan through the Grow Indianapolis Fund.

The Grow Indianapolis Fund is an $8.25 million revolving loan fund that provides financing to local Indianapolis businesses in distressed neighborhoods. A collaborative effort between the City of Indianapolis, U.S. Bank, Cambridge Capital, First Internet Bank, and LISC’s New Markets Support Company (NMSC), the Fund provides loans from $250,000 to $2 million to help small businesses expand, create jobs, and strengthen the local community. Businesses can use the financing for working capital, to purchase real estate and equipment, or to refinance existing debt. The Grow Indianapolis Fund is enhanced with federal New Markets Tax Credits to offer small businesses more favorable rates and terms than a traditional bank loan.

      

We are grateful for the Grow Indianapolis Fund. It has allowed us to secure capital to grow our business and the benefit of interest-only in the first year is especially attractive.
— Scott Weaver, Business Owner of Dugdale

Dugdale will benefit from the Grow Indianapolis loan’s 12-month interest-only period, which will provide working capital relief and more flexibility than an ordinary bank loan. “We are grateful for the Grow Indianapolis Fund,” says Mr. Weaver. “It has allowed us to secure capital to grow our business and the benefit of interest-only in the first year is especially attractive.”

Like most businesses in grocery distribution, Dugdale experiences ebbs and flows in cash flow. With access to the right tools – like flexible and patient loan capital through the Grow Indianapolis Fund – businesses like Dugdale can grow. “We can increase our cash on hand significantly, so we can take advantage of buying opportunities and grow our business,” explains Mr. Weaver.

Dugdale will remain on the west side of Indianapolis and continue to employ more than 40 people full-time. These job opportunities with living wages are especially important for the local neighborhood, which struggles with high unemployment and poverty. Helping businesses like Dugdale remain and expand in distressed areas of Indianapolis is one of the community impacts the Grow Indianapolis Fund hopes to achieve.

For more information on the Grow Indianapolis Fund, please contact Brynn Sanders, VP of Fund Management.