Built to Last: How EFund Supports Small Business for Long-Term Success in Rural Communities

Tucked along the shore of Lake Superior, Two Harbors is home to just over 3,500 people. It’s a working town—where trains roll through, ships load with iron ore in the harbor, and small businesses anchor the community.

Like many rural towns, Two Harbors has experienced economic shifts. The arrival of big box stores. The rise of online shopping. But another shift is happening. In the last decade, a growing number of entrepreneurs have opened new businesses, bringing fresh energy and renewed momentum to the area.

“We have a lot of great spaces by the lake, and there’s lots of opportunity,” said Chrissy Scandin, the owner of two small businesses in Two Harbors and daughter of a former downtown department store owner. “I hope to inspire people to go back to that style —to open businesses and breathe new life into the town.”

Since 2017, the Entrepreneur Fund (EFund) has supported 77 businesses that have revitalized the local economy, designing spaces that attract both residents and seasonal visitors, and creating or sustaining nearly 400 jobs in the port town. Today, 71 of those businesses remain in operation, and 64% have been operating for 5 years or more —well above Minnesota’s 5-year survival rate of 49%.  

Two Harbors is proving what’s possible when local business owners lead the way—building lasting businesses, creating opportunities, and shaping a stronger future for their community.

Frank McQuade: Adapting for the Long Haul with the Right Support

When Frank McQuade opened a fine dining restaurant in downtown Two Harbors in 2018, he brought something new to the local food scene—an exceptional menu, a commitment to flavor, and a bold vision for what was possible in a small town.

But like many entrepreneurs, his journey wasn’t a straight line.

Just two years in, a lease issue forced him to relocate. Then, the COVID-19 pandemic hit. With rising costs, food shortages, and shifting consumer habits, it became clear a pivot was necessary.  

With guidance from his EFund advisor and strategic financing, Frank was able to reassess his business model, run the numbers, and make a pivotal decision—change course from fine dining to fast-casual. He and his wife Samantha reopened McQuade’s Pub and Grill, serving smashed burgers and comfort food staples that drew steady local and visitor traffic and kept the doors open.

“It was hard to keep up with fine dining during COVID,” Frank said. “We sat down with our advisor, ran the numbers, and made the call to change direction. We wanted to make sure the business could last during COVID, and after COVID for the next 'x' amount of years.” 

That combination of personal grit and professional support made all the difference. EFund didn’t just step in once—they stayed (and continue to stay) with Frank through each challenge, offering lending and advising as the business evolved.

“If I didn't have them, I definitely wouldn't be open,” said Frank. “It's like having a friend who knows everything about business that I can call anytime.”

Frank’s story mirrors the experience of many early-stage entrepreneurs in the region. Of the 37 Two Harbors businesses that partnered with EFund within one year of forming, 14—including McQuade’s—have already passed the five-year mark. The remaining 23 are still in operation and building toward that milestone.

In a town where seasonality and unpredictability come with the territory, EFund’s long-term approach to business advising and lending gives local entrepreneurs more than a financial boost—it gives them staying power.

Chrissy Scandin: Scaling Big Ideas into Sustainable Growth 

Chrissy Scandin grew up in Two Harbors watching her mother run a downtown department store—a role model who made entrepreneurship look easy. Inspired by that example, Chrissy opened her own salon, Dept. Two, on the same street years later in 2019.  

“She made it look easy,” said Chrissy of her mother. “And I think when people make it look easy, you're more likely to do it. I love what I'm doing, so I don't think it's hard, but it's also not easy.” 

Chrissy opened her doors with big ideas but limited space. From the start, she connected with the Entrepreneur Fund—and that connection became a trusted partnership that would help shape every stage of her growth.

In her first year, Chrissy enrolled in Be Strategic, a program designed to help business owners plan for sustainable growth. With guidance from her EFund advisor, Sandi Larson, she began building a roadmap for her business—learning how to scale intentionally through small steps: renovating her salon space, exploring boutique retail, and hosting community events that brought people together.

As Dept. Two continued to succeed, Chrissy took a bold step forward in 2023: purchasing land for a second location to open her new venture—LAGOM. 

Named after the Swedish word that translates to “not too much, not too little, just the right amount,” LAGOM is more than a boutique. It’s a community gathering place and a shared space where women entrepreneurs can lease space, grow their wellness businesses, and build confidence—just as EFund helped Chrissy do. 

“I think women are full of amazing ideas, and maybe we don't always get the support that we need,” said Chrissy. “I feel very lucky that I found Sandi and the Entrepreneur Fund, because it definitely gave me more confidence.” 

That confidence came from more than just encouragement. Over six years, Chrissy partnered with EFund for strategic planning, working capital for salon renovations, new inventory and financing to launch LAGOM. Her journey wasn’t powered by one big moment, but by continued support—loan by loan (3 total), conversation by conversation (nearly 50 hours with Sandi alone), decision by decision.

“It was hard to step back at first and reevaluate what was important,” she said. “And it worked out because I would have never survived. I’m thankful for the tough love Sandi gave me.” 

Chrissy’s story is more than one of business growth—it’s about building community through entrepreneurship. With the support she received from EFund, she not only achieved her goals, but also created space for women to pursue theirs— helping build a stronger, more connected Two Harbors.

Dan Schutte: Growing Beyond the Backyard and Establishing Roots

Dan Schutte didn’t set out to be a business owner. A former second-grade teacher with a creative approach to science and math, he used native plants teaching tools in his classroom. What began as a teaching aid quickly became a backyard hobby and, as these things do, a full-fledged business.  

In 2015, Dan and his wife Kristen left their Duluth home and settled on a rural property just 20 miles up Highway 61 in Two Harbors. There, they launched Shoreview Natives—a native plant nursery dedicated to restoring landscapes and supporting pollinators across the region. Since then, they’ve completed more than 400 restoration projects throughout northeastern Minnesota, turning yards, farms, and public spaces into vibrant, resilient native ecosystems.

But Dan’s vision extended far beyond on-site landscaping. He imagined a greenhouse and gathering space where people could connect with nature, learn through workshops, and support environmental restoration more directly.  

Turning that vision into reality meant taking a leap—and making a strategic investment.  

“You kind of grow within your means to a certain point, and then there’s a jump to be made in the business to keep it going in the direction you want it to,” said Dan.  

Encouraged by friends and clients who had worked with EFund, Dan reached out and found a partner who could help him take that leap.

With a second property already secured just up the road, EFund provided flexible lending to cover key infrastructure needs—driveway installation, greenhouse foundation, septic upgrades, and site prep.  

“Before it was kind of like having a car with no keys to drive it. And in working with EFund it allowed us to have the keys and start moving this vehicle the way we wanted it to,” said Dan about the loan he received from EFund.

But the partnership didn’t end. As construction moved forward and plans evolved, EFund remained a steady source of support—offering strategic advising to help Dan navigate the next stage of growth, wherever it led.  

“It just seems really unique to have someone who's not looking to make an income off of you, but is just there with advice and resources to support you and your business,” said Dan.  

Now open to the public for their second season, Shoreview Natives new space hosts plant sales, educational workshops and has plans underway to expand into on-site lodging and community events—creating a unique experience where visitors can connect with native plants and the natural beauty of the North Shore.  

The Ripple Effect of Business Survival

When a small business succeeds, the impact goes far beyond the entrepreneur. In partnering with Two Harbors business owners, EFund has helped sustain 310 local jobs and create an additional 85 new positions over the past eight years. That’s nearly a quarter of the town’s labor force. 

This level of job stability and creation is a powerful economic engine. It leads to increased household income, which in turn drives local spending. According to studies on the local multiplier effect, dollars spent at locally owned businesses are more likely to be recirculated in the community—supporting other small businesses, generating tax revenue, and strengthening essential services like schools, infrastructure, and healthcare. 

Since 2017, 44 EFund-supported businesses have experienced steady revenue growth, averaging an increase of $40,000 since enrollment. These businesses span industries such as hospitality, retail, healthcare, technical services, construction, agriculture, and manufacturing—each contributing to lasting community wealth. While their revenue growth may be modest, they continue to invest in property, hire local contractors, sponsor youth sports, support community events, and create vibrant gathering places. When a business closes, all that potential disappears. But when it survives—and thrives—it becomes a cornerstone of a stronger, more resilient local economy.

More Than a Business, It’s Home 

For Chrissy, Dan, and Frank, entrepreneurship is about more than running a successful business—it’s about building a life that’s deeply connected to the people and place they call home. 

“It's a unique little community that we feel really proud to be a part of,” said Dan.  

They chose to build their businesses in Two Harbors not just for the lower land prices or less competition, but for the community. Their kids go to school nearby, they know their customers by name, and they collaborate with fellow entrepreneurs to create meaningful lives—for themselves and those they employ. Rooted in place, they’re not just working in the community—they’re working for it. Their stories show that with the right support, small-town entrepreneurs can build both sustainable businesses and fulfilling lives right where they are.  

“I love the people and I love our location,” said Chrissy. “I feel like it's this safe haven, and there's a lot of potential. I want to be part of that growth and I want to inspire other people to do it, too. Because if a hairdresser can do it. I think anybody can.”  

How We Work to Support Small Businesses and How It Benefits Your Community

Our proven approach pairs flexible lending with strategic advising, tailored to the unique needs of rural entrepreneurs. Every client is matched with a dedicated advisor who lives and works in the region they serve. This local connection matters—it builds trust, strengthens relationships, and ensures support is grounded in real knowledge of the community's opportunities and challenges.

EFund advisors work one-on-one with business owners to:

• Understand their financial health through cash flow analysis, financial planning, and goal setting.

• Explore smart growth opportunities by helping entrepreneurs test ideas, evaluate market demand, and make strategic investments.

• Plan for risk and resilience, whether it’s navigating a supply chain disruption, preparing for seasonal influxes or decreases, or pivoting during economic uncertainties.

This deep advising relationship is paired with customized lending—loans up to $750,000 designed to meet the business where it’s at and where it’s ready to get to.  

But EFund doesn’t operate in isolation. We work alongside:

• Regional banks to fill capital gaps and co-lend when a traditional loan isn’t an option or not quite enough for a project.

• Municipalities and chambers to align our efforts with local economic priorities.

• Nonprofits and development organizations to ensure entrepreneurs have wraparound support.

This collaborative, ecosystem-based model creates a lasting support network for entrepreneurs at every stage—from start-up to succession planning.

Want to learn more about us, refer a client, or partner on a project in your community? Sign up for our newsletter and updates, or contact us here with your questions. We look forward to creating lasting support for businesses in your community —together.  

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