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BUSINESS FINANCING <br /> SBA Loans I Financia[Packaging Federal,State and Local Financing Incentive Financing Revolving Loan Funds <br /> March 5, 2017 <br /> Patrick Brama <br /> Assistant City Administrator <br /> City of Ramsey <br /> 7550 Sunwood Drive NW <br /> Ramsey, MN 55303 <br /> RE:AMERICAN PRINT AND DIGITAL LOAN REQUEST FOLLOWUP <br /> Dear Patrick: <br /> The Ramsey EDA and City Council have approved a request for financial assistance from American Print <br /> and Digital to assist with the purchase of an existing building, make improvements to the building and <br /> purchase equipment. The approved loan amount is$72,500 payable over a 10 year period at a rate of <br /> 3%. The loan approval was conditioned on securing a second mortgage on the residence of the owner <br /> as well as the owner's personal and corporate guarantees. <br /> After additional discussion with the borrower and their primary lender, the borrower requested that the <br /> EDA and the City Council reconsider securing the loan with his personal residence. Instead, the <br /> borrower requested that the loan be secured by the real estate and the new and used equipment to be <br /> purchased along with the personal guarantee. <br /> A prudent lender looks for more than one source of repayment for commercial loans. The reason for <br /> this is that if,for some reason, a delay or a problem occurs,the repayment commitment can still be <br /> honored. In the case of American Print and Digital,we identified 3 sources of repayment. They include <br /> the following: <br /> Repayment Sources <br /> • Primary: Cash Flow from Operations <br /> • Secondary Liquidation of Collateral <br /> • Tertiary: Personal and Corporate Guarantees <br /> 1885 Station Parkway NW Andover, MN 55304 <br /> 763.784. 3337 1 f: 763.784.3338 1 www.cmdcbusinessloans.com <br />