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City of Elk River, Minnesota <br />Patriot Converting, Inc. <br />December 22, 2015 <br />Page 4 <br />space in Elk River, the company is projecting positive net income beginning in 2016 and moving forward. <br />This positive net income and cash flow will allow the cover the proposed debt service. <br />• Ability to demonstrate positive net worth: due to the anticipated business consolidation and <br />associated cost savings, the company is projecting positive net income commencing in 2016. <br />• Letter of commitment from applicant pledging to complete the project during proposed project <br />duration: Provided <br />• Letter of commitment from other financing sources stating terms and conditions of their <br />participation. Rivedand Bank is willing to participate with Central Minnesota Development Company in <br />the SBA 504 loan program to provide financing for the project conditioned on approval by the Small <br />Business Administration, a certain appraised value and the proposal signed by the borrower. This letter <br />from Rivedand Bank has been provided in conjunction with the loan application and supporting <br />documents. <br />• Sufficient collateral: Rivedand Bank and Small Business Administration are in position #1 and #2 on <br />the property. The EDA will be blanket 2^d position on the equipment A personal/corporate guarantee <br />will also be provided. <br />c. All other information as required in the application and/or additional information as may be requested by the <br />Economic Development Authority <br />d. Project compliance with all city codes and policies <br />e. Program Objectives: In addition to quality job and wage creation/retention requirements, the applicant must <br />meet all Microloan Fund criteria and demonstrate how the proposed activities will meet at least one of the <br />following objectives: <br />• The project contributes to the fulfillment of the city's approved and adopted economic development <br />and/or redevelopment plans <br />• The project prevents or eliminates slums and blight <br />• The project increases the local tax base <br />• The project brings a structure into compliance with an existing building code violation <br />