Success News U. S. Small Business Administration, Cedar Rapids, Iowa
(319) 362-6405 Ext. 221
SBA Doubles Help for Computer Professionals 

Cresco, IA ... A good business name describes what a business does and Computer Professionals Unlimited (CPU) is a business that lives up to its name. Computers, peripherals, repair, upgrades, software, training, internet access, web hosting, parts, supplies, unlimited friendliness and good service are all a part of CPU’s business. CPU produces IBM compatible machines but can service or repair any brand of personal computer including Apple, MacIntosh, and I-Mac.


In October 2000, Jeff and Sandy Holmstrom moved to Cresco from Tallahassee FL to set up a computer retail store. They visited with Gary Kelm at Cresco Union Savings Bank and arranged a Small Business Administration (SBA) guaranteed loan to start their business in a building formerly occupied by a hardware store. As fate would have it, December 2000 was one of the coldest Decembers on record and the heating bills quickly ate up profits. The Holmstroms then decided to buy their own building and located a satisfactory one just a block away. They used the SBA program again for the purchase, this time through Home Federal Savings and Loan in Cresco. The smaller location still offered enough space for a retail outlet and training room in the front of the building and repair and office space in the rear.


To offer the largest possible array of services, CPU partners with a number of well known names including Pearson VUE, Microsoft, and Iowa Telecom. These partnerships allow them to offer application training, certification training, web-hosting, and broadband and dialup internet services. Jeff does most of the training and two staff technicians keep the service and repair end of the business running smoothly.

"We could build and sell $300 to $500 computers just like our competitors," said Jeff commenting on cut rate computer ads. "The customer who buys a low quality computer once will never buy one again," he added. Commenting that most customers expect their finished product to carry the name of one of his major brand competitors, Jeff says CPU is their brand as well as a statement of quality and reliability the business offers. Customers can request lower quality, cheaper components but they are generally pleased that CPU builds the highest quality into their custom systems without being asked.

Jeff and Sandy were both working at different companies in Tallahassee but when the high technology market began to reel and salaries began dropping in the late 1990s, they decided to take a big step and start their own business. Jeff’s mother Suzanne, who helps out with the retail end of the business, did much of the initial work to determine the need for the business in Howard County, Iowa and encouraged the couple to relocate. Jeff and Sandy chose Cresco since many of the larger businesses that use their services are located there. 

Business hasn’t been entirely rosy; Jeff echoes many of the complaints voiced by most businesspeople regarding government regulations, taxes, paperwork, and competition. Most importantly, the business has been successful and the community has been very supportive. Jeff sees more diversification in the business within the next two to three years involving subcontracting in computerized "smart home" technology and increasing use of computerized security systems. Jeff plans to expand the business within 5 years, possibly adding a store in Rochester, MN.

The Holmstroms have two children. Their daughter is a 19 year-old student at NE Iowa Community College in Calmar IA. They also have a ten year old son who attends Crestwood Elementary School in Cresco .