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Loan Request/Allegiance Realty Page 2 <br /> December 28, 1992 <br /> • Primary lender $ 99,750 (see attached <br /> letter, re: terms <br /> and conditions) <br /> Elk River EDA 27,500 <br /> Equity 11,750 <br /> TOTAL $139,000 <br /> Allegiance Realty seeks supplemental financing from the EDA for <br /> the purchase of the office suite, and, for the purchase of the <br /> telephone system. <br /> Loan repayments are proposed as follows: <br /> SOURCE TERMS INTEREST RATE <br /> Primary Lender 20 year amortization; 9 . 75% <br /> 4ccLi50 5 year balloon <br /> Elk River EDA 15 year amortization 6% (current <br /> (Real Estate Portion) low prime) <br /> adjusted every <br /> 4211500 six months <br /> Elk River EDA 5 year amortization 6% (current <br /> (Equipment Portion) low prime) <br /> • adjusted every <br /> ow six months <br /> For the period ending November 30, 1992, Allegiance Realty <br /> report revenues of $331,911 and a net income of $4,579 . <br /> Occupancy expenses at 823 Main Street for November, 1992, <br /> totalled $911; year-to-date occupancy expenses totalled <br /> $8,334 . <br /> Allegiance Realty currently employs 11 persons . As a result of <br /> the move to the condominium, the company projects that the <br /> total number of employees will reach 25 (additional agents, <br /> sales manager, administrative support) . <br /> SUMMARY <br /> As with previous loan requests, the Finance Committee can <br /> expect a short presentation by the applicant. The Finance <br /> Committee' s recommendation on this request will be considered <br /> by the EDA Commissioners at their January 11, 1993, meeting. <br /> Conditions for the approval of this loan will likely include: <br /> - Filing and recording of a $21,500 mortgage for the real <br /> estate <br /> - UCC filing and recording for the equipment (telephone <br /> S system) <br /> Personal Guarantees from owners and spouses <br /> - Corporate Promissory Note <br />