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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 />