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<br />Case # 2 <br /> <br />Consider Assistance Package for Clear Choice Countertops <br />By: Mike Mulrooney, Development Consultant <br /> <br />Background: <br /> <br />Clear Choice Countertops recently moved to Ramsey about 12 months ago. The company was a <br />home based business located on the owner's residential property in Isanti County. The business <br />has continued to grow requiring relocation to an existing building in the Ramsey Business Park <br />95. <br /> <br />Matt Semler started Clear Choice Countertops in mid 2006. Matt has been employed in the <br />countertop and cabinet making industry since 1998 and in 2006, decided to start his own <br />business. Initially Clear Choice concentrated on custom cut laminate countertops and fixtures. <br />The company handles all phases of the project, from measuring and design to cutting and finally <br />installation of the finished product in the customers home or business. <br /> <br />Despite the real estate construction slow down, Matt remained busy in 2007. As his contacts and <br />business has grown, Matt has found a much greater demand for higher end product. Much of his <br />new orders are now for granite, quartz and marble counters, most of which are part of home <br />remodeling projects rather than new construction. The cutting equipment that Clear Choice now <br />has does not allow for efficient cutting and finishing for the high end materials. The purchase of <br />the bridge saw will allow Matt to continue to grow and expand his business and employment. <br /> <br />Loan Request <br /> <br />Mr. Semler is requesting financing in an amount that will be sufficient for him to purchase used <br />equipment. The equipment will allow him to compete more effectively in the hard surface <br />countertop market. Staff expressed a desire to have a seni'or collateral position on the equipment <br />if the Ramsey RLF was used. Due to the size of the request, financing provided through SBA <br />related programs would be costly and not very efficient. SBA would also require that the <br />Ramsey RLF to be in a subordinate position. The structure for the loan request is summarized <br />below. <br /> <br />SOURCES <br /> <br />USES <br /> <br />Ramsey RLF 31,500 Purchase & install bridge saw 35,000 <br />Owner Equity 3,500 <br />Total 35,000 Total 35,000 <br /> <br />Eauitv Detail <br /> <br />Equity will come from <br />available business cash <br /> <br /> <br />Clear Choice intends to purchase a used bridge saw that will allow the company to continue to <br />expand its granite countertop business line. The estimated cost to purchase the equipment, <br />delivery and set up is estimated at $35,000. To preserve the young company's liquidity and <br />allow for adequate working capital to fund continued growth, a loan of 90% of the total cost is <br />requested. <br /> <br />9 <br />