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HomeMy WebLinkAboutBozeman Revolving Loan Fund Committee Meeting Minutes Oct-2020 through March-2021 BOZEMAN REVOLVING LOAN FUNDS COMMITTEE SUMMARY ZOOM meetings occurred: 10/1/20 11/19/21 12/17/20 1/21/21 2/18/21 2/18/21 3/5/21 3/18/21 Otherwise, meetings were not held or email summaries were sent in lieu of zoom meetings. BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING MINUTES October 1, 2020 1:30 PM on ZOOM Committee Members Present: Brit Fontenot,Michael Wallner,Tracy Menuez,Richard (RJ) Patch. Prospera Staff Present: Cherie Nugent, Ross Hoyle 1:32 PM Call Meeting to order 1:31 PM Introduction 1:35 PM Review Loan Portfolio (a) Summary (b) Discussion Points a. Helio Collective—Repayment Options. b. Bozeman Fiber (Bozeman RLF) —Payments. c. EDCMT—Loan Extension Approved. 1:50 PM Action Items (a) Estimate payments for Bozeman Fiber (Gallatin RLF) a. FIB: r=4.625%w/ amortization of 20 yrs. b. Prospera: r-6%w/ amortization of—yrs. c. 1"Security: r=4%w/ amortization of 10 yrs. d. BZN Fiber estimated r=6%w/ amortization of 10 yrs. (b) EDCMT a. Extension was approved. 2:15 PM Adjourn LN#57 HELIO Loan Summary and Discussion. • Any proposed requests should be noted with an email and using a clear subject line to aid in committee members identifying Prospera loan committee emails from all other emails. Additionally, it was noted that proposals are fine for emails to inform members on updates but that meetings will be required on all loan term changes or requests. A)i * �rj t E 0 15 0 jj BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING AGENDA November 19, 2020 12:00 PM on ZOOM 12:00 PM Call Meeting to order 12:01 PM Introduction 12:05 PM Review Loan Portfolio (a) Summary (b) Loan Loss Reserve Review in December. a. Collateral Spreadsheet for GAAP Analysis. (c) Discussion Points a. Bozeman Fiber (Bozeman RLF) —Discuss I/O Payments. b. EDCMT—Paid in Full. c. Ghost Town Coffee—Need 2020 Financials. 12:25 PM Action Items (a) Estimate payments for Bozeman Fiber (Gallatin RLF) a. FIB: r=4.625%w/ amortization of 20 yrs. b. Prospera: r=6%w/ amortization of_yrs. c. 1"Security: r-4%w/ amortization of 10 yrs. d. BZN Fiber estimated r=6%w/ amortization of 10 yrs. 12:30 PM Adjourn BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING AGENDA December 17, 2020 12:00 PM on ZOOM 12:00 PM Call Meeting to order 12:01 PM Introduction 12:05 PM Review Loan Portfolio (a) Summary (b) Discussion Points a. Bozeman Fiber (Bozeman RLF) —Discuss I/O Payments. 12:25 PM Action Items (a) Abstention of any interested party. (b) Vote to:Approve or Deny extension terms for Bozeman Fiber—no extension fee w/ r=4.0% &amortization of 10 yrs. (c) Participating banks agreed to 6 month extension thru 6/24/2021 w/ no extension fee. Summarized as follows: a. FIB: r=4.625%w/ amortization of 20 yrs. b. 1"Security: r=4%w/ amortization of 10 yrs. 12:30 PM Adjourn Attended by RJ Patch,Tracy Menuez, Michael Wallner, Scott Nicholson Bozeman Fiber—Updated committee with decision made on other loan. Would like to have the same terms on this loan. Michael—Fully supports Bozeman Fiber Tracy—supports them 6 months extension Keep 6%interest rate Motion to approve new terms: 1"by Michael;2"a by Tracy. Tracy brought up Ghost Town—need to submit updated financials. Requested that Prospera reach out for updated financials. Ross Hoyle From: Ross Hoyle Sent: Wednesday, December 9, 2020 4:00 PM To: Brit Fontenot; Michael Wallner; Tracy Menuez; Scott Nicholson; Richard (R1) Patch Cc: Carolyn Murray; Cherie Nugent Subject: BZN RLF Committee -Zoom Mtg on 12/17/20 Attachments: BZN Meeting Agenda 12 17 2020.docx; BZN Loan Summary December 2020.docx; 12.17.20 Int Only Request; Extension to 6 24 21.docx; BZN Fiber Financials - October.pdf Good Afternoon, Bozeman Loan Committee: In advance of our meeting on Thursday, December 17th at 12:00pm please see attached for the: 1)Agenda, 2) Portfolio Loan Summary, and 3) BZN Fiber Extension Request& Financials. Please note we will be voting next week on the Bozeman Fiber loan extension, as it matures 12/24/20. Brit, I know you will be abstaining from voting so just need to ensure we have enough voting members present. Please let me know if you have any questions. Thank you all for your efforts! Ross Ross Hoyle I Loan Funds Manager 2015 Charlotte St., Ste. 1 1 Bozeman, MT 59718 (406) 587-9565 Direct www.prosperamt.org sa CONFIDENTIALITY The information in this email is confidential and may be legally privileged. It is intended solely for the addressee.Access to this email by anyone else is unauthorized. If you are not the intended recipient,any disclosure,copying,distribution or any action taken or omitted to be taken in reliance on it,is prohibited and may be unlawful. 1 BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING AGENDA January 21, 2021 12:00 PM on ZOOM 12:00 PM Call Meeting to order 12:01 PM Introduction 12:05 PM Review Loan Portfolio (a) Summary (b) Discussion Points 12:25 PM Action Items 12:30 PM Adjourn Reviewed BZN loan portfolio. Reviewed BZN RLF balance as of December 31,2020. Brit—How can we get this money out into the public? Referenced the Bozeman Fund, Who are the target clients, or market?How do we reach out to them? Brit shared how we teamed up to make the Bozeman Fund happen and how pleased he is with the support. BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING AGENDA February 18, 2021 12:00 PM on ZOOM 12:00 PM Call Meeting to order. 12:01 PM Introduction. 12:05 PM Review Loan Portfolio: (a) Summary (b) Discussion Points a. Confirm Loan Loss Reserve Amount. (c) Discuss Future Loan Requests: a. Prospective Leads from BZN Micro Loans: i. Altitude Gallery,LLC (mtg 2/22). ii. Indulgence (mtg 2/22). 12:25 PM Action Items: a. Approve Loan Loss Reserve Amount per Memo. 12:30 PM Adjourn BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING MINUTES February 18, 2021 12:00 PM On ZOOM In attendance: Brit Fontenot, RJ Patch, Michael Wallner,Tracy Menuez,Scott Nicholson Staff in attendance: Ross Hoyle, Carolyn Murray,Cherie Nugent(took notes) Discussion on Loan Loss Reserves Memo RJ asked who other than The Eating disorder clinic had paid off?He was looking for an explanation for the recommendation. Carolyn explained the difference. Motion to approve Loan Loss Reserves by Scott Nicholson 2nd by Michael Wallner-All Approved Ross Hoyle From: Ross Hoyle Sent: Tuesday, March 2, 2021 4:00 PM To: Brit Fontenot; Michael Wallner; Tracy Menuez; Scott Nicholson; Richard (RJ) Patch;Jon Ayres; Bert Bartle; Clinton Gerst;Alyssa.McClellan@wellsfargo.com; Callan Nagy; KRISTINE MENICUCCI Cc: Carolyn Murray;Cherie Nugent Subject: Prospera Business Network- Loan Request -GV Carpet One - mtg 3/5 at 4pm Attachments: Attachments.html Good Afternoon, BZN & IRP Loan Committee Members: Please see attached for a new Prospera loan request for Gallatin Valley Carpet One in amount of$300,000 to be funded w/$150,000 of IRP RLF and $150,000 of BZN RLF. For those able to attend,we will be meeting on ZOOM on Friday March 5tn at 4pm to review and vote on this request; it will be a joint committee of both Bozeman and IRP members. Following your review, please let me know if you have any questions. I've attached the files using Citrix as a secure delivery system so please let me know if you have any difficulties accessing the attachments. Looking forward to seeing those able to attend! Ross Citrix Attachments Expires August 29, 2021 Financial Analysis - Carpet One 2 23 21.xlsx Flooring Financials - December 2020.pdf _. GV Carpet One Projections.pdf GVC1 Accounts Receivable Aging Report 3-2-21.pdf ?? GVC1 Accounts Receivable Totals Report 3-2-21.PDF Loan Request Presentation - Carpet One 3 1 21.docx STUART BEISWANGER - PERSONAL FINANCI...021.pdf Ross Hoyle uses Citrix Files to share documents securely. Ross Hoyle I Loan Funds Manager i Pro CI B U S I N E s 5p E T W O R K Gallatin Valley Carpet One Loan Proposal Joint Bozeman RLF committee & IRP Loan Committee March 5, 2021 4:00 pm Loan committee members present; Clinton Gerst, Brit Fontenot,Scott Nicholson, RJ Patch, Bert Bartle,Jon Ayers, Alyssa McClellan,Callan Nagy Gallatin Valley Carpet One owner-Stuart Beiswanger Motion to approve by Clinton Gerst 2nd By Bert Bartle—All approved Bozeman committee 150,000 IRP committee 150,000 BOZEMAN REVOLVING LOAN FUND COMMITTEE MEETING AGENDA March 18, 2021 12:00 PM on ZOOM 12:00 PM Call Meeting to order. 12:01 PM Introduction. 12:05 PM Review Loan Portfolio: (a) Summary& Updates (b) Discussion Points a. Future Loan(s) (Altitude Gallery,LLC) b. Committee Vacancy (Replacements) 12:25 PM Action Items: a. None. 12:30 PM Adjourn Lq Ross Hoyle From: Ross Hoyle Sent: Tuesday, April 13, 2021 11:33 AM To: Brit Fontenot; Michael Wallner; Tracy Menuez; Scott Nicholson; Richard (RJ) Patch Cc: Cherie Nugent; Carolyn Murray Subject: Bozeman RLF - Meeting Update Good Morning, Bozeman RLF Committee Members: Regarding our meeting scheduled for 12pm on Thursday(4/15), would it be acceptable if we canceled this month's meeting and I just send out an email update instead? Thank you! Ross Ross Hoyle ( Loan Funds Manager 2015 Charlotte St., Ste. 1 I Bozeman, MT 59718 (406) 587-9565 Direct www.prosperamt.org 'Pros G`N0 R ti CONFIDENTIALITY The information in this email is confidential and may be legally privileged. It is intended solely for the addressee.Access to this email by anyone else is unauthorized. If you are not the intended recipient,any disclosure,copying,distribution or any action taken or omitted to be taken in reliance on it,is prohibited and may be unlawful. 1 Ross Hoyle From: Ross Hoyle Sent: Monday, April 19, 2021 10:51 AM To: Brit Fontenot;Tracy Menuez; Scott Nicholson; Richard (RJ) Patch Cc: Carolyn Murray; Cherie Nugent Subject: Prospera Business Network - Bozeman RLF Summary Good Morning, Bozeman RLF Committee Members: Action Item: • Helio—Please vote to APPROVE or DENY a 60 day credit extension to accommodate the Debtor securing payoff financing. Loan matures 5/5/21. The Debtor is attempting to payoff Prospera and has asked for a 60 day extension to push the requested maturity date to July 5, 2021. Payments for 6/5 &7/5 will be recalculated to begin collecting 8%interest for a new payment amount of$2,207 (based upon a 5 year amortization); Existing monthly payment of$1,500 was principal only(no interest). Additionally, I will file a new UCC lien to better secure the existing loan by filing a lien on a camera package (camera,tripod, head)worth an estimated$75,000 and used in Debtor's filmmaking business. I will also ask for lien on the personal residence, but anticipate this will be difficult to obtain and do not think I will be able to get this. Debtor has provided current income statement and balance sheet but not yet 2020 Individual& Business Tax Returns; I will calculate business cash flow once all financials have been provided. Income for 2020 was and or the I"quarter of 2021. The Debtor has a lot of upcoming film shoots scheduled and has been attempting to raise investor funding for these projects. These investors are the target for funding Prospera's loan payoff. Negotiations will be occurring during the requested 2 month extension period in attempt to secure the financing to payoff the Helio loan. The Kina Pickett issue is still unresolved and Helio principal, Chris Murphy, anticipates filing a lawsuit to resolve the issue, but would like to first satisfy Prospera before beginning litigation. Portfolio Summary: • Bozeman Fiber—Meeting scheduled for Friday(4/23)whereby Debtor is providing a status update and disclosing details on an upcoming project. • Overall,the Bozeman RLF portfolio is performing as agreed and all loans are current. Please let me know if you have any questions. Thank you all and have a wonderful week! Ross Ross Hoyle I Loan Funds Manager 2015 Charlotte St., Ste. 1 1 Bozeman, MT 59718 (406) 587-9565 Direct www.prosperamt.org Prospera CONFIDENTIALITY The information in this email is confidential and may be legally privileged. It is intended solely for the addressee.Access to this email by anyone else is unauthorized. If you are not the intended recipient,any disclosure,copying,distribution or any action taken or omitted to be taken in reliance on it,is prohibited and may be unlawful. 1 Ross Hoyle From: Ross Hoyle Sent: Thursday, May 20, 2021 3:23 PM To: Brit Fontenot;Tracy Menuez (tmenuez@thehrdc.org); Scott Nicholson; Richard (RJ) Patch Cc: Carolyn Murray Subject: Prospera - Bozeman Loan Committee - Portfolio Summary- May Attachments: Attachments.htm I Follow Up Flag: Follow up Flag Status: Flagged Citrix Attachments Expires November 16, 2021 BZN Portfolio Summary as of 5 20 21.pdf D y Ross Hoyle uses Citrix Files to share documents securely. Good Afternoon, Bozeman RLF Committee Members: Overall,the Bozeman RLF portfolio is performing as agreed and all loans are current. Please see attached portfolio summary report. Several specific loan updates are below as follows: Portfolio Summary: • Bozeman Fiber—Loan matures 6/24/21. Awaiting further direction from Creditors and Nick Porrini. • Helio Collective, LLC—Loan matured 5/5/21. Principal reduction payment of$49,000 received 5/19. Officer is working on extension through July 51h to allow time for Chris Murphy to provide documents(tax returns, PFS& Application)for his renewal request. Extension payments of$2,207 are due 5/5 and 6/5 and will be paid via ACH. Chris Murphy is asking for a 12 month renewal to allow time for his new investors to determine whether or not they will invest. If the investors accept the findings of their due diligence period,they will payoff the outstanding Prospera loan. Unfortunately, Chris Murphy is gone from 5/24 to 6/5 on a film shoot. Due to the outstanding balance of$59,840, Chris Murphy is offering a new camera purchase as collateral to secure his renewal request(camera package valued at appx. $90,000). Kina Pickett will not be a part of the renewal request, due to he and Chris having a falling out. From researching the history of the credit, it appears Kina Pickett offered financial strength to the credit,which officer has explained to Chris Murphy. Officer anticipates presenting a write-up of the new renewal request in mid-June for committee decision,once required documents are provided. Please let me know if you have any questions. Thank you all and have a wonderful remainder of your week! Ross 1 Ross Hoyle From: Ross Hoyle Sent: Monday,June 7, 2021 1:59 PM To: Brit Fontenot;Tracy Menuez (tmenuez@thehrdc.org); Scott Nicholson; Richard (RJ) Patch;Jon Ayres; Bert Bartle; Clinton Gerst;Alyssa.McClellan@wellsfargo.com; Callan Nagy Cc: Carolyn Murray; Paul Reichert Subject: Bozeman Fiber- Matures June 24, 2021 Good Afternoon, Bozeman RLF&Gallatin RLF Committee Members: Bozeman Fiber's loans#78 (BZN RLF)&#79 (Gallatin RLF)with Prospera both mature June 24, 2021. Please respond to this request by or before Thursday(6/10) so that I may get back to Nick Porrini with Prospera's response. Request: With the exception of Prospera using a 6%interest rate, Prospera accepts the terms below as presented. If this is correct, please vote to APPROVE or DENY this request. Regarding the interest only period, payments would continue at$300/month for each loan. When they convert to principal and interest,the proposed terms would produce P&I payments of$716/month for each loan. As we did before though, I will need to work w/Greg to see what amount his cash flow can support and follow up with the loan committees prior to renewing the loans by or before 6/24/21. Below I have included details from the Creditors' lead, Nick Porrini, regarding the consensus. In summary, Nick is asking Prospera for a 2 year renewal maturing June 2023,consisting of a 6 month interest only period (June 24 to December 24)followed by an 18 month Principal& Interest period (January 2022 to June 2023). For the participating banks,the proposal will have the P&I portion amortized over a 20 year amortization and the interest rate will remain at 4.625%. If this is the group consensus,then I support Nick's proposal below, but am aware that Prospera may want to continue with a 6%interest rate, correct? In our previous conversations, Prospera's loan committees were in agreement with joining the group proposal with the exception of the interest rate,which Prospera set at 6%. Prospera's current loans are set at 6%interest and our interest only payments are $300/month for each loan on the current 6 month extension maturing 6/24/21. Please let me know if you have any questions or concerns. Otherwise, if we are demanding a 6% interest rate with no other changes, please vote on this request. Thank you! Ross Ross Hoyle I Loan Funds Manager 2015 Charlotte St., Ste. 1 1 Bozeman, MT 59718 (406) 587-9565 Direct www.prosperamt.org CONFIDENTIALITY The information in this email is confidential and may be legally privileged. It is intended solely for the addressee.Access to this email by anyone else is unauthorized. If you are not the intended recipient,any disclosure,copying,distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. 1