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i � � <br />' CWCB $0 ' $0 $95,000 <br />�_ _ ----.__ r___ ________ __.._--_._ _ _ _ .. <br />�� �__� �__.__ _--�------------- <br />� NRCS � $32,000 .._.�_ __�-' $0--t_ �_.�_._�_.� ___ $0 <br />�._� ._�___ _ <br />; Totals � $�00 � $0 : $95,000 <br />Raymond Dairy, Inc. will cover any costs that exceed the NRCS estimated Project cost. <br />Raymond Dairy, Inc. is requesting a 20-year (long term) loan from the CWCB in the amount of <br />$95,000 (this does not include the cost to remove the existing ditch structure). The standard <br />agricultural lending rate would be 2.5% resulting in annual payments of $6,093.98. The <br />company will fund a payment reserve account at the outset of the Project in the amount of <br />$6,093.98. This amount is equivalent to one (1) annual loan payment. It is understood that a one <br />percent (1%) origination fee in the amount of $9,500 will be paid to CWCB. A principle <br />reduction payment of $32,000 will be applied to the full loan amount once funds become <br />available from the NRCS grant already approved for this project. <br />Credit Worthiness and Collateral <br />Revenues generated from Raymond Dairy, Inc. alone are adequate to repay the loan; however, <br />their ability to repay the loan is also supported by the Loan Funding Agreement and the Payment <br />Reserve Account. Raymond Dairy, Inc. has an almost non-existent debt to loan ratio and <br />outstanding credit rating. Raymond Dairy Inc., will have one parcel of real property appraised <br />which will be pledged for collateral for the CWCB loan. The property will be of equal or greater <br />value of the total amount borrowed. Raymond Dairy Inc. operational balance sheets prepared by <br />Farm Credit Services, actual income and expense reports from 2006 are located in Appendix E. <br />Economic Analysis and Physical Impacts <br />