Midwest Business Finance Corporation

Nonprofit profile at a glance

EIN
411846655
IRS 990 coverage
2012–2024
Forms available
Form 990 2024, Form 990-T 2024
Location
St Cloud, MN, USA
Phone
3202585000
Rating
67
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Economic Development

Official website

Reported finances

Revenue
$4,432,392
Expenses
$3,337,212
Assets
$8,029,828
Liabilities
$784,693

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

18 people listed

Executive titles in this filing

  • JOSHUAA LAFFEN (VICE PRESIDENT BUSINESS DE)
  • JENNIFER FITZPATRICK (VICE PRESIDENT, LOAN PORTF)
  • NADENE KRUIZE (PRESIDENT & CEO)
  • JOSEPH KAMMERMEIER (VICE PRESIDENT BUSINESS DE)
  • TERRY STEIN (VICE PRESIDENT BUSINESS DE)
  • MICHAEL STEARNS (VICE PRESIDENT BUSINESS DE)

Highest reported compensation

  • NADENE KRUIZE (PRESIDENT & CEO): $367,218 total reported compensation
  • JOSEPH KAMMERMEIER (VICE PRESIDENT BUSINESS DE): $205,718 total reported compensation
  • TERRY STEIN (VICE PRESIDENT BUSINESS DE): $201,910 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To promote small business & jobs

What it reported doing in 2024

To promote small business & job creation in minesota through the u.s. Small business administration, zero subsidy, section 504 loan program authorized by title v of the small business investment act, title 15 U.S.c. Chapter 14b.

Operating model

Revenue model
Earned-program. 97% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 97% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - Most voting board members are independent and program spending has grown recently. A relatively small share of available resources goes toward mission work and the filing does not identify recipients for some grant dollars.

Rating breakdown

  • Financial Efficiency: 58
  • Transparency & Controls: 55
  • Accountability: 95
  • Sustainability: 65
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 57.3%; rating input score 57
  • Program expense ratio: 77.6%; rating input score 78
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 91.7%; rating input score 92; 7th percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Pass
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 11.3%; rating input score 11; 12th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 91.7%; rating input score 92; 22nd percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 24.7%; rating input score 81; 81st percentile among comparable filings
  • Total-asset coverage ratio: 2.41; rating input score 68; 68th percentile among comparable filings
  • Liabilities to assets ratio: 0.1; rating input score 59; 59th percentile among comparable filings
  • Officer compensation ratio: 44.9%; rating input score 2; 2nd percentile among comparable filings

Growth

  • Program expense growth: 5.2% per year; rating input score 100; 41st percentile among comparable filings
  • Revenue growth: 5.8% per year; rating input score 100; 47th percentile among comparable filings
  • Asset growth: 7.5% per year; rating input score 100; 48th percentile among comparable filings

Details

  • Where the money goes: 57.3% of revenue deployed · 77.6% of spending went to programs
  • Governance: 11 of 12 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $2.6M in reported program spending
  • Leadership: top reported pay $367K · 18 people listed · 2 of 6 pay-setting controls reported
  • Consistency: 27 of 28 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes grants and executive pay
  • Filing history: 13 filing years from 2012 to 2024
  • Contacts: How to reach this organization
  • Money network: 19 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Financial Efficiency: Mission deployment rate scored 57/100.
  • High — Transparency & Controls: Grant itemization coverage scored 11/100.
  • High — Sustainability: Officer compensation ratio scored 2/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
  • Review — Sustainability: Liabilities to assets ratio scored 59/100.