Cobbler Julie Derrick’s business is booming, and Multnomah County’s new microloan program is helping to make sure it continues to grow.
The county’s microloan program -- with expert microlenders Micro Enterprise Services of Oregon and MercyCorps NW -- sparks economic growth locally through small loans to small businesses. Nearly $1 million in loans and technical assistance has been made available so far to support local entrepreneurs of color, immigrants and women like Julie, who often face extra hurdles when trying to secure small business loans.
Since 2009 when she first opened JD’s Shoe Repair, Julie has been repairing heels, replacing zippers and reinforcing shoe soles for customers.
Early on, she realized that in order for her business to reach its potential, she would have to take advantage of the resources available to her. When she heard about a new microloan program that offers funds and guidance to small disadvantaged businesses, she jumped at the chance.
Growing up in rural Idaho and being surrounded by a family of skilled tradesmen sparked Julie’s lifelong interest in shoemaking. In 2006, she left her job as a labor organizer to pursue cobbling. On her decision to change career paths Julie says: “I was about 40 and I figured that I should either pursue this dream or let it go. I didn’t want to let it go.”
Julie began working under a few already-established cobblers, honing her skills and learning the ins and outs of shoe repair first hand. She was laid off from both her positions working for other cobblers and decided it was time to create an opportunity for herself within the male-dominated industry. In 2009, she opened the doors of JD’s Shoe Repair in a 390-square-foot space with $8,000 in personal loans. She started as the only employee.
In her first year, the shop made $33,000 in revenue and $43,000 the next. Although Julie was pleased with the growth of her business, she knew that she would need more work space and extra hands to take her dreams to the next level.
That’s when she applied for a small business loan from MESO after hearing about the opportunity from a friend. She applied in late 2011 and the microloan came through -- $9,000 to expand her business.
With this new capital, Julie could support the growing demand for her services by relocating to a new shop at 728 N. Alberta St., three times the size of her old location. In addition, the microloan Julie received enabled her to hire five employees to help with shoe repair and administrative work.
Another valuable resource Julie received through the microloan program is the ongoing technical assistance she receives from MESO. MESO instructed Julie on how to make projections and identify her business goals. They regularly review her business financials with her and hold quarterly meetings for small business owners to gather and continue their education.
Networking is a feature of the program that Julie finds particularly helpful. “I appreciate the mentorship of someone further along,” she says of the relationships she’s developed with seasoned business owners.
Thanks to the assistance she received through the microloan program, Julie is now equipped to meet the requests that flow regularly in to JD’s Shoe Repair, from a simple $20 heel replacement to a complete reconstruction of a vintage pair of shoes steeped in sentimental value.
Julie also attributes some of her business’ success to the mindset she shares with many of her customers. “More and more people look for ways to both economize and live sustainably, which includes repairing broken shoes instead of replacing them,” she says, adding it’s about taking care of what you already have instead of “contributing to the ever-larger heap of garbage in the world.”
The $8,000 in loans Julie borrowed from her personal network to open JD’s Shoe Repair has been repaid in full and with a projected revenue of $80,000 for 2012, in addition to the ongoing guidance she’s receiving from her expert lender, she’s on the right path to paying off her 2011 microloan.
When Julie thinks about the future of her business, she hopes to one day create her own line of custom high-end shoes and open a second shop.
Apply
To qualify for the microloan program, applicants must be at or below the median family income and reside or conduct business in Multnomah County.
To apply for the program with MercyCorps NW visit: http://www.mercycorpsnw.org/what-we-do/loan-program/
To apply for the program with Micro Enterprise Services of Oregon
visit: http://mesopdx.org/index.php?option=com_content&view=article&id=63&Itemid=5