HomeMy WebLinkAboutTerry's Rexburg City Council Memorandum
M E M O R A N D U M
TO: Rexburg City Council
FROM: Terry Butikofer
DATE: March 10, 2017
SUBJECT: Additional Information regarding the Rexburg Revolving Loan Fund
Dear Mayor and Council Members,
Thank you for your time and attention last evening, and for renewing our contract to administer your Revolving Loan Fund. I thought it might be appropriate to share a little more information
regarding the fund, so that as you talk to growing businesses and others you will have enough information to help market the fund. I indicated last night that the maximum loan amount
we considered was $250,000.00, when in fact that is more like the average of the size of loan that we have made out of that fund. Please see the attached tables that will provide you
with additional fund information.
Program
For
Eligible Area
Structure
Rexburg RLF
Commercial Real Estate and Fixed Assets along with other legal commercial activities that Rexburg may be interested in looking at such as some working capital and inventory.
The City of Rexburg and Madison County
The Development Company acts as the lender.
We can make loans from this fund up to the available amount in fund from an internal revolving loan pool.
Description
Term/Rate/Fees
Contact
The Development Company can finance up to 85% of a project if it has sufficient funds in the pool.
The borrower is usually requested to inject 15% down into the project which creates an 85% Loan to Value maximum.
In many cases, The Development Company will partner with other funds or banks if the loan request is too large to accommodate under the Rexburg RLF alone.
We will normally go 20 years on real estate or 10 years on equipment, furnishings & fixtures.
We will do up to 7 years on working capital and inventory. If the project is a combination of the above elements, we will consider a blended maturity.
TDC normally sets a fixed interest rate usually at or slightly above prime. There is a 1.50% origination fee plus a $750.00 packaging fee.
The Development Company:
Terry Butikofer, Dave Ogden, or Ken Poulsen at 208-356-4524 extensions 311, 319, or 318.
I hope this helps provide you with additional information. Thank you again for your assistance, interest, and service to our community.