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CITY OF RAMSEY <br />REVOLVING LOAN FUND <br /> <br />PROGRAM OBJECTIVES AND UNDERWRITING CRITERIA <br /> <br />The Community Development and Finance Departments analyze a development proposal to <br />determine the extent to which the proposal meets the program objectives and whether the proposal <br />is financially feasible. As to program objectives, there is an emphasis on the creation and retention <br />of jobs, tax base and economic development throughout the City. <br /> <br />As to considerations of what will make a project economically feasible, the initial review of the <br />items in the loan package will include: <br /> <br />2. <br />3. <br />4. <br />5. <br />6. <br />7. <br />8. <br />9. <br /> <br />Market Feasibility Study (Business Plan) <br />Financial Analysis and Breakdown of Project Economics (5 year) <br />Appraisal <br />Plans, Specifications and Cost Estimates of Proposed Project <br />Purchase Agreement <br />Soil Tests, Asbestos Tests, Environmental Assessment <br />Title <br />Survey <br />Insurance on Project <br /> <br />BORROWER <br /> <br />2. <br />3. <br />4. <br /> <br />Narrative on Company, Owners <br />Past three (3) year financial statements (Signed and dated, tax returns) <br />Personal Financials (Signed and dated, tax returns) <br />Tenant and Lease Data (Tenant financial statements and copies of leases) <br /> <br />The elements of the loan package become the initial materials we review. This review can <br />generally eliminate any projects which the EDA would not want to undertake based on economic or <br />other considerations. However, there are often projects which may appear marginal based on this <br />initial review, but which 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 need to adjust our demands for information based on the type of project being <br />financed. <br /> <br />As to the people, we look for owners/managers who are experienced in their field or industry. A <br />detailed resume, credit history and personal business contacts can help establish a good track <br />record. <br /> <br />As to the nature and quality of the real estate, some of the items to examine are: <br /> <br />B. <br />C. <br />D. <br />E. <br />F. <br />G. <br /> <br />Location <br />Building size <br />Land to building ratio <br />Quality of Construction <br />Multi-purpose character of the project <br />Building quality <br />Supporting leases, if any <br /> <br /> RLF <br />Page 3 of 7 <br /> <br /> <br />