Here’s the Dill: SBA Microloans Helped a Fermented Foods Company Meet Growing Demand
Owner Cori Deans checks on the ferments for her Essex-based business Small Town Cultures.
After Cori Deans was diagnosed with an autoimmune disorder in 2011, several years of pain, surgery and ineffective medications prompted her to research lasting solutions. She discovered probiotics derived from fermented foods eliminated her symptoms entirely,
but off-the-shelf options at the grocery store were less than appetizing.
Deans started experimenting with her own recipes using produce grown locally near her home in Keene, a town in Essex County located in the Adirondacks. Friends and family were so eager to try her delicious flavor combinations—like jalapeño and radish or dill
and green beans—she decided to start a business that would help others easily incorporate great-tasting fermented foods into their diets.
The first time Cori Deans approached local retailers with products from her business,
Small
Town Cultures, in 2018, a regional distributor took notice. What Deans had initially thought of as a side business immediately took off, and two years later, Whole Foods approached her to launch in 40 locations and their flagship store in Austin, Texas.
With such rapid growth and high demand, Deans knew she needed working capital to hire more staff and purchase equipment.
“We were cutting onions by hand—500 pounds of onions a day,” said Deans. “One of the hardest things about being a small business, especially if you’re growing quickly and have traction, are the opportunities you can’t execute on because you don’t have the funds.”
In searching for the right bank loan, Deans heard about the Adirondack
Economic Development Corporation (AEDC), a U.S. Small Business Administration (SBA) microlender . Deans secured not only an initial $10,000 microloan but also tapped her lender for one-on-one business counseling to help her company grow.
“The conversation I had with [an advisor] at AEDC was so different. He believed in me,” Deans said. “He understood we needed funds to be able to grow; otherwise, we would never progress past being a farmers market brand.”
“AEDC provides crucial support to small businesses in North Country with SBA-backed microloans, which make significant impact with small dollar amounts,” said SBA Upstate New York District Director Bernard J. Paprocki. “Cori was able to leverage capital and
business counseling from SBA partners to bolster her proven leadership and creativity and turn Small Town Cultures into a national brand.”
Deans’ advisor at AEDC showed her how to create future projections and understand her costs at scale; the microlender also encouraged her to consider the SBA’s recommended 7.5% marketing budget. As Small Town Cultures continued to grow, AEDC helped Deans refinance
her first microloan and take out an additional $50,000, along with a loan from the US Department of Agriculture.
The financing helped Deans purchase specialized food processors, fermentation vessels and packaging and storage supplies to increase production capacity.
“We went from selling cases to selling pallets—that’s what the money allowed us to do,” she said.
By the start of 2022, Small Town Cultures has been stocked in over 400 retail locations throughout the U.S. and expanded to a staff of eight, including employees in Brooklyn and New Jersey. In June 2022, Deans was able to purchase a new 4,000 square foot facility.
Small Town Cultures also received additional small loans through two SBA COVID economic aid programs, the Paycheck Protection Program and the COVID Economic Injury Disaster Loan, which helped her through pandemic challenges like quarantining staff. Though like
many other businesses, Deans is also faced with supply chain issues, she has doubled her revenue each year of the pandemic and retained her staff. She has continued to hire employees who believe in her company’s mission and helps them feel valued as part-owners.
Looking ahead, Deans aims to expand beyond health food stores and reach the average shopper at conventional grocery stores, furthering her mission of making fermented foods and their health benefits more accessible for everyone. She recommends this favorite
recipe of hers to those looking for a healthier snack option:
Gut-Friendly Nachos
Serves: 4
Prep Time: 10 minutes
Cook Time: 10 minutes
Total Time: 20 minutes
Ingredients
-
6 cups tortilla chips
-
lean ground beef, cooked as desired
-
1 cup shredded cheddar cheese
-
⅓ cup fermented red onions
-
¼ cup fermented jalapenos
-
1 pint cherry tomatoes, halved
-
Avocado slices or guacamole
Instructions
-
Preheat the oven to 350°F.
-
Place the chips on a large baking sheet, top with the beef and cheese.
-
Bake for 5-10 minutes, until the cheese is melted.
-
Remove from the oven and top with the red onions, jalapenos, tomatoes, and avocados. Enjoy!
|
|
