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P~O~RAM <br /> <br /> CITY OF RAMSEY <br />REVOLVING LOAN FUND <br /> <br />OB.IECTIVES AND UNDERWRITING CRITERIA <br /> <br />The Commutaity iDevelopment and Finance Departments analyze a development proposal to <br />determine th~ex!~nt to which the proposal meets the program objectives and whether the proposal <br />is financially ~¢asi~ble. As to program objectives, there is an emphasis on the creation and retention <br />&jobs, tax bi, se ~d economic development throughout the City. <br />As to consid~rati6ns of what will make a project economically feasible, the initial review of the <br />items in the l~dan p~ckage will include: <br /> <br />1. Market. Fcasibility Study (Business Plan) <br />2. FinanCial'Analysis and Breakdown of Project Economics (5 year) <br />3. Appralsal', <br />4. Plans, iSp¢¢ifications and Cost Estimates of Proposed Project <br />5. Purchase ~greement <br />6. Soil T~sts, [Asbestos Tests, Environmental Assessment <br />7. Title i <br />8. Survey <br />9. Insure ~nee on Project <br /> <br />1. Narraflye oB Company, Owners <br />2. Past three'[(B) year financial statements (Signed and dated, tax returns) <br />3. Perso ~n~l. ~igancials (Signed and dated, tax returns) <br />4. Tenan~and [Lease Data (Tenant financial statements and copies of leases) <br /> <br />The elementslof the loan package become the initial materials we review. This review can <br />generally elim~ate[any projects which the EDA would not want to undertake based on economic or <br />other considcrl!tiOfis. However, there are often projects which may appear marginal based on this <br />initial review, but ~fhieh may be workable if the financing can be structured in other ways. <br /> <br />In reviewing a~ project, the EDA looks at three general categories in any proposed financing, <br />realizing that We n~ed to adjust our demands for information based on the type of project being <br />financed, r [ <br /> <br />As to the peoPle, We look for owners/managers who are experienced in their field or industry. A <br />detailed resurge, ~edit history and personal business contacts can help establish a good track <br />record. <br /> <br />As to the natur6 and quality, of the real estate, some of the items to examine are: <br /> <br /> A. Location <br /> B. Bulling size <br /> c. ~Land to building ratio <br /> D. Qua[ky of Construction <br /> E. Multi-purpose character of the project <br /> F. ~Building quality <br /> G. SuPporting leases, if any <br /> <br /> RLF <br />Page 3 of 7 <br /> <br /> <br />