7.1. SR 01-19-2016 - Laserfiche WebLink

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i BANK Memo to the City of Elk River Letter of Commitment SBA 504 Program Michael A. Stilwell 3048 Bunker Lake Blvd NW Andover, MN 55304 USA RE: Stilwell Holdings, LLC (Trade name: Patriot Converting, Inc,) 3048 Bunker Lake Blvd NW, Andover, MN 55304 Dear Michael, Riverland Bank has reviewed the borrower's application for a $3,365,100 loan for full project financing for the purchase and improvements of the real estate (and or equipment) located at 12698 Industrial Blvd NW, EII< River, MN 55330, This bank is not in a position to meet the borrower's request for full project financing at the time as the loan maturity exceeds our normal credit policy. To the best of our knowledge, financing the total project cost is not available at interest rate and terms prevalent in our community. Riverland Bank, however, is willing to participate with Central Minnesota Development Company in the SBA 504 loan program to benefit Stilwell Holdings, LLC. In this connection, the Bank's $1,869,500 loan would have an initial rate of interest at 4.15%, The note will be for a term of 11 years with an amortization of 20 years, The 11 year term will have an initial rate of 4.15% fixed for 12 months during the interest -only period, reprice at the end of the 12 month interest -only period to 4.15% for first 5 years. At the end of 5 years, interest rate will reprice @WSJ Prime +1.00% for remainder of term. This loan will be secured with a Vt UCC mortgage on subject real estate, In addition, Riverland Bank, is willing to provide an interim loan in the amount of $1,495,600 to be repaid within one year from the proceeds of the debenture sale, The loan will have a fixed rate of 4.15% for a maximum term of 12 months paying interest only. This interim loan is to be secured by a second security interest lien on the subject real estate (and/or a project specific or blanket lien on equipment). In addition, the SBA approval of this loan is conditioned upon the receipt by SBA from Bank of a one-time participation fee equal to one-half of one percent of the principal amount of the bank loan attributable to the 504 project that is senior to the SBA. This is conditioned based on approval by the Small Business Administration, an appraised value of $3,740,000 and the proposal that was signed by the borrower. These conditions will also include provisions reviewed by the bank and its legal counsel as appropriate for this transaction and for transactions of this type. Sincerely, Gary White SVP of Commercial Lending Riverland Bank 700 SEVILLE DRIVE, SUITE 100 - JORDAN, MINNESOTA 55352 PHONE 952.492,2750 - FAX 952.492.6944