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| Additional information |
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| Milestone Growth Fund, Inc. |
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History:
From Concept to Reality—Milestone Growth Fund
The Milestone Growth Fund began as an idea more than 20 years ago. Then Metropolitan Economic Development Association (MEDA) Former President and CEO Esperanza Guerrero-Anderson saw an unmet need in funding to minority businesses. It was evident from her experience in working with hundreds of minority entrepreneurs that regardless of the importance of business advice, minority entrepreneurs needed access to long-term equity-type financing.
Too risky for bank financing and too small to attract traditional venture capital funding, minority-owned businesses had nowhere to turn. Ms. Guerrero-Anderson recognized this gap in financing and was determined to fill it. Her initial idea was to have a small loan pool to finance five to 10 companies.
Over a year’s time, Ms. Guerrero-Anderson met with a group of successful minority entrepreneurs and business people to generate ideas that were to become the basis for Milestone’s business plan. The McKnight Foundation received the first Milestone proposal from Ms. Guerrero-Anderson. Their response was a $100,000 check in the mail—not enough to start a fund but big enough to keep our interest in the project!
Ms. Guerrero-Anderson presented the Milestone investment fund concept to the MEDA board of directors who, after a lengthy process, agreed to support the project and appointed four board members to oversee the formation of the fund: John Stout, Wally Faster, Richard Worthing and Ms. Guerrero-Anderson.
Mr. Stout became the first Milestone Chair—a position he still holds. Mr. Faster and Mr. Worthing retired from the Milestone Board in 2002 after 16 years of service. Without the strong personal commitment of these individuals Milestone would have never become a reality.
Launching and Growing Milestone
In 1986 a Milestone Growth Fund Board of Directors was formed, a business plan was prepared, and fundraising efforts began using the McKnight Foundation contribution as seed money.
During Milestone’s initial fundraising efforts the need to pursue a Small Business Investment Company (SBIC) license became clear with help from business colleague Karl Stouber, then a Northwest Area Foundation staff member. The Milestone Board agreed to pursue the SBIC license and the Northwest Area Foundation became Milestone’s largest contributor.
In 1989 Milestone received its SBIC license. In January 1990 our doors opened for business with only two employees and $1.3 million in donated capital—a very modest beginning.
Ms. Guerrero-Anderson was chosen as Milestone’s President and CEO because of her successful business career, leadership, and tireless energy and enthusiasm. She is an advocate of the free enterprise system and is passionate about the formation of capital in minority-owned businesses as a means to bring economic prosperity to minority communities and social stability for all.
In 1993 Milestone donated capital had risen to $2.1 million and was poised to receive additional financing from the Small Business Administration (SBA). To support the anticipated growth, Milestone hired Judy Romlin as Vice President of Investment. In Ms. Romlin Milestone found someone equally committed and passionate about Milestone’s mission as Ms. Guerrero-Anderson. She has an extensive background in the banking business, primarily in commercial banking. Like Ms. Guerrero-Anderson, Ms. Romlin is passionate about helping minority entrepreneurs achieve business success, become community leaders, accumulate wealth and bring social and economic prosperity to the community at large. It is this vision, and their passion for it, that is at the heart of Milestone’s success.
In 1995 Milestone was asked to consider participating in the Minnesota Urban Initiative Program (MUIP). The MUIP has been one of the most successful partnerships in Milestone’s history. Under this program Milestone has invested a total of $ 3.7 million in 17 companies ($1.7 million being the State’s portion of the funding and $2.0 million being Milestone’s portion). Current Milestone clients in this program alone employ a total of 166 well-paid individuals as of 6/30/03.
Milestone Today
Today Milestone is a $26 million dollar fund with a good track record, an experienced and committed board of directors, and a staff that is passionate about creating wealth in the minority community as a means to initiate a ripple effect that makes our community a better place to live.
Now, more than ever, Milestone is committed to helping minority-owned companies. We continue to be the only Minnesota-based SBIC providing smaller amounts of long-term, high-risk, equity type financing and management assistance to minority entrepreneurs. And because ethnic minorities are growing at a faster rate than the rest of the population, we expect to increase our funding base to meet the higher demand for funding from minority-owned companies.
In 2005 Milestone will celebrate 15 years of success. We look forward to another 15 years of leadership in minority communities, dedication to solid fund management, and a belief that communities and businesses together can promote economic prosperity and help in ending overt and subtle racial discrimination. |
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