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City of Elk River, Minnesota <br /> Sportech, Inc.Application Review <br /> December 4, 2013 <br /> Page 4 <br /> After reviewing Sportech's application materials the company appears to be a for-profit enterprise. <br /> 2. Business must be a small business as defined by the small business administration; <br /> Based upon the application materials provided by the applicant, the company appears to meet the definition <br /> of a small business as defined by the small business administration. We are waiting on additional <br /> information from the applicant to confirm this status. <br /> 3. Business must have a positive net worth; <br /> It is important to note that the latest financial statements provided by the company are for the year ending <br /> December 37, 2012 and as such this determination is being made based upon the available information at <br /> that time. Based upon a review of the financial information submitted by the company, Sportech has a <br /> positive net worth as of December 31,2012. <br /> 4. Business must be an industrial, manufacturing,or technology-based industry; <br /> • A review of Sportech's application materials confirms that the company fits into the description of an <br /> industrial,manufacturing, or technology based industry. <br /> 5. Religious, political,casino,sports facilities and pornographic enterprises are not eligible to use the <br /> Economic Development Forgivable Loan Program. <br /> Sportech does not appear to be a religious,political, casino, sports facilities or pornographic enterprise. <br /> Financial Feasibility <br /> According to the forgivable loan program guidelines the financial feasibility criterion are meant to assess availability of <br /> funds, private involvement,financial packaging and cost effectiveness. These criteria are: <br /> 1. Appropriate ratio of private funds to forgivable loan funds <br /> The company has requested financial assistance of$111,115 and plans to finance the remaining project <br /> costs of$757,933. The ratio of private to public funds is 1.36:1. 57%of the project costs will be financed <br /> with private dollars which meets the minimum criterion(50%)of the City's policy. <br /> 2. Sufficient cash flow to cover proposed debt service as demonstrated by financial statements and projections. <br />