Seventy percent of the total loan is guaranteed under the USDA’s B&I Rural loan development program. The financing will be used to assist with the purchase of an ongoing dirt and sand mine located in Florida. This purchase will allow the Company to position itself as a leading industrial supplier of dirt and sand to the residential building and road construction industries.
The Borrowers have entered into a Purchase and Sale Agreement with the Seller to purchase the subject property as part of a larger $15,000,000 transaction. The purchase of the subject property (three of the four parcels outlined in the Purchase and Sale Agreement) is $10,500,000 and will be paid by $500,000 from borrowers’ equity and $10,000,000 from loan proceeds. The business will remain in operation as a dirt and sand mine through the newly-formed entity. The additional land included in the Purchase and Sale Agreement will be financed by a seller carry-back note in the amount of $4,500,000. This land will be utilized for mitigation banks (offset land to compensate for the impacts caused by the business’ operations on the subject property.)
|Loan Term||10 yrs|
|Participation Availability Amount||$624,611|
|Minimum Participation Amount||$250,000|
|Original Loan Amount||$2,375,000|
|Full Loan Documentation||Link|