Client: Chad and Diana Homan, owners of Homan Hardware
Client Location: Faulkton, SD
CDFI: Northeast South Dakota Economic Corporation
CDFI Service Area: South Dakota
Financing, with support from the Finance Justice Fund and Renewable and Energy Efficiency Financing Grant Program
When Chad and Diana Homan saw that the Faulkton, South Dakota, area needed a full-service hardware and farm store to help keep more dollars locally spent, they created Homan Hardware in 2014. Eventually they ran out of space at the retail store and decided to expand to bring more products and services to Faulkton and surrounding communities.
They started looking for financing for the new location at different banks and lending agencies. They were successful in getting a construction loan through a bank and were approved for a loan for permanent financing, but towards the end of construction, interest rates had risen substantially and they were concerned the permanent loan would no longer fit their needs.
Chad and Diana began looking for other financing options and contacted Northeast South Dakota Economic Corporation (NESDEC), along with two other economic development agencies. All three lenders worked together successfully to come up with a lending package that better suited the Homans.
With the expansion, they were able to incorporate energy-efficient items into the building such as the heating and cooling system, windows, lighting, as well as better-insulated walls. Shortly after the move to their bigger location, Chad and Diana made the decision to expand once again and offer building materials, something that would not have been possible at their previous location.
“Small communities like Faulkton strongly benefit from the support of economic development agencies because of the programs and funding made available to small businesses. Thank you, NESDEC, for your community and economic mindset,” said the Homans.
In addition to the hardware store, Chad operates their welding and repair business and raises cattle. Diana was a teacher at the local school before coming on full-time to help with managing and bookkeeping with both family businesses and the cattle operation. They also have three young children who are growing up learning the trades of the businesses.
Are you an OFN member CDFI with a great borrower story to share?
Your client success stories illustrate what it means to deliver opportunity for all. They help OFN demonstrate how CDFIs work to help create good family-wage jobs, decent affordable homes, healthy foods, greener neighborhoods, and so much more.
Find Other CDFIs
Interested in learning more about other CDFIs in your region? Visit OFN’s CDFI Locator.