Nov. 9, 2022

This paid piece is sponsored by Sioux Metro Growth Alliance.

Inside a historic downtown building, three organizations are making a little history of their own.

They’re sharing office space and along the way finding ways to deliver their services to more businesses and communities.

“It’s one suite, 10 offices, so we can see each other and what’s going on and ask questions,” said Jesse Fonkert, president and CEO of Sioux Metro Growth Alliance. “We’re getting good traction with it.”

Sioux Metro Growth Alliance, which supports economic development in the Sioux Falls metro-area communities, moved into the Harvester Building at 196 E. Sixth St. early this year. Its growing team needed the space, and the central location “allows our staff to come and go easily and work across the region while having a place to meet, host board meetings and prospects and really create a strong team mindset to advance our culture and make our communities better.”

As the same time, the South Dakota Development Corporation was looking for office space because it needed to transition out of the former Startup Sioux Falls building being converted for Southeast Technical College.

“We were looking for more and better ways to connect with other organizations locally that have the same mission as we do, and it was kind of natural. Timing was everything,” said Jennifer Oberg, SDDC president and CEO.

“Jesse approached us, and it was really what we were looking for, it saved us money, and everything just fell into place.”

The SDDC is an agent for the U.S. Small Business Administration in issuing and servicing SBA 504 loans – a program that helps small businesses purchase real estate with uniquely advantageous financing.

“In our former space, we shared a building with many different organizations we partnered with, so when Jesse approached us, it seemed like a way to keep the same feel and make sure we don’t lose those resource relationships,” said Brad Jankord, vice president of lending.

“In economic development, there are so many great opportunities for small businesses, and the best way we can learn about what others are doing is to be near them.”

In this case, the team of small-business lenders and the team of economic development specialists literally are steps away from one another in the same office. It has led to referrals on both sides already.

“It’s happened a couple of times already where we can pop in and share what a business is looking at and whether they might be a fit for a 504 loan,” Fonkert said.

“And Jesse invited me to speak to his board as an educational presentation, and out of that bred two or three conversations that have led to deals,” Jankord said. “We both have great boards.”

And, recently, the office grew by one more tenant.

Sadie Swier, director of the SD CEO East Women’s Business Center, moved her office in a couple of months ago.

Swier had attended the ribbon-cutting for the other organizations earlier this year, and the location immediately came to mind when she needed to find office space.

“It’s been absolutely fantastic,” she said. “Overall, there’s a great synergy in bringing all of these organizations together. Thanks to SMGA meetings and SD CEO East one-on-one free business advising appointments, there’s more consistent foot traffic into the office to help overall awareness about our services. Personally, I’m learning more about the South Dakota economic development system and how we all fit together on the entrepreneurial journey.”

The Women’s Business Center, which supports female business owners with business guidance, resources, education and events, has become a resource for the organizations that now share office space with Swier.

“What’s so fun about what Sadie does versus what we do is that she’s upfront when someone has an idea and wants to take it to the next level. And we’re one or two steps down the path for when you have an idea and it’s working well and it’s time to grow the business by purchasing real estate and building equity for the future,” Jankord said.

“I recently had a call from a borrower who’s a woman transitioning into owning her own business, and because of Sadie, I had learned about the South Dakota CEO Women’s Business Center, so I recommended they talk. Sadie helped her develop a business plan with the help of the Small Business Development Center, and now the borrower is back with me and looking to purchase a property.”

In the future, “I’m looking forward to more synergy, collaboration and learning,” Swier added. “Specifically, a potential event, workshop or training we host together.”

Collaboratively, “we’re really trying to put a team in place so it’s kind of a one-stop shop,” Oberg said. “And if it’s not here, we’ll be able to find what does fit.”