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In the absence of having a defined path for considering exceptions to the current loan <br />policy I recommend that the EDA consider this request. Keep in mind that this <br />does not mean that you are providing credit approval. The City has not <br />received a formal application and therefore no underwriting of the loan request <br />has been initiated or completed. The underwriting process may yield other options <br />for meeting the needs of the borrower without approving an exception to current <br />policy. <br />Final loan approval would be based on a review of information provided by the <br />borrower, their primary lender and what underwriting uncovers during the loan review <br />and underwriting process. Credit approval should not be considered until this work is <br />completed. <br />Following receipt of all required information the current policy outlines the following <br />path to credit approval. <br />1. All parties seeking revolving loan funds must file a pre -application. The pre - <br />application requests basic information regarding the applicant, project scope, <br />and project costs. <br />2. If the loan request appears to be eligible, a full revolving loan fund application <br />is forwarded to the applicant. <br />3. Only complete applications are considered. Underwriting begins to determine <br />the credit worthiness of the borrower when complete information is provided. <br />4. Following the underwriting process, the loan request is placed on the agenda <br />for the EDA's next scheduled meeting. <br />5. The EDA bases its credit decision on the economic benefit to the City of <br />Ramsey, credit underwriting typical to the lending community including the <br />borrower's ability to repay the loan and the collateral offered to secure the <br />loan, the number of jobs to be created or retained, wage rates of jobs created <br />or retained, and increase in the local tax base. <br />6. The Ramsey EDA serves as the loan review committee. The policy states that <br />final determination on all revolving loan applications rests with the City <br />Council. <br />I hope you find this information helpful. I am available at any time to answer any <br />questions you may have regarding my recommendation or the loan approval process. <br />3 <br />