Chuck Hammond and Art Christoffersen, former executives of McLeod USA, purchased a small lip balm manufacturing business in 2003. Chuck and Art began to grow the company but in 2005 was hit with the first devastating loss with the sudden death of Art. Chuck regrouped and continued to surround himself with capable employees and began the growth of the company once again.
In 2008 the company experienced its second devastating loss with 8 feet of water in their facilities from the Cedar Rapids floods which destroyed virtually everything. Within 1 week the company was running its production facilities and starting over. Through teamwork and perseverance the company began another accelerated growth pattern until they realized they needed to find new facilities.
In 2011, Bankers Trust Company in Cedar Rapids began its planning with Chuck Hammond and the team at Raining Rose in an attempt to move from its present facilities which included 3 separate buildings in downtown Cedar Rapids.
With the help of SEDC and the SBA 504 loan program along with the State of Iowa and the City of Cedar Rapids, a package was put together to allow the company to move to its present facilities and purchase some new manufacturing equipment. Raining Rose now operates out of a beautiful 127,000 square foot building. The company can now meet its demand for product, be more efficient in its manufacturing process and expand its product line.
This successful partnership has had a multimillion dollar economic impact to the Cedar Rapids area and has resulted in a large number of jobs. SEDC is proud to have been a part of this project.
Location: Cedar Rapids, Iowa
Client: Raining Rose, LLC
Project year: 2011
Partners: Bankers Trust Company in Cedar Rapids, as well as State of Iowa and the City of Cedar Rapids
Financing: SBA 504 loan program
Details: Package allowed the company to move to127,000-sq. foot facility, and purchase new manufacturing equipment.