This is a sub-participation request of $1,000,000 (~33% of the unguaranteed portion) in a USDA Business and Industry (70%) guaranteed loan for $10,000,000, in which another bank will be the lead lender. The request from the bank is comprised of USDA and SBA financing for a distillery in Kentucky. The requested $10,000,000 USDA facility will refinance an existing interim construction loan with another bank and an equipment loan. In addition to the debt refinance, proceeds will be used to fund working capital and closing costs. The request of approximately two million dollars SBA 7(a) International Trade facility will provide working capital, pay off outstanding accounts payable, and pay off a portion of the First State Bank Loan that was not able to be repaid from the USDA loan. Most of the real estate improvements have been completed using the interim financing from original bank. The distillery started operations in 2019. There are approximately two million dollars in construction costs remaining (including contingency and monitoring fees) that will be financed and completed by the borrower. The two credit facilities will be collateralized on a pari-passu basis.

Loan ID 0113
DSCR 1.00
LTV 79.9
Note Rate 6.75
Property Location KY
NAICS 312140
Guaranty Type USDA
Loan Term 20 yrs
Rate type Var
Note date N/A
Maturity date N/A
Participation Availability Amount $0
Minimum Participation Amount $250,000
Original Loan Amount $1,000,000
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