HomeMy WebLinkAboutLoan Review - Early Alpine Academy
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LOAN REVIEW
DATE: April 7, 2025 PREPARED BY: Jennifer Pearson
1. BORROWER NAME:
Early Alpine Academy
Alan & Mary Moore
202 S Wilson Ave
Bozeman, MT 59715
https://www.earlyalpine.com/
mary@storystreetcapital.com
(404)975-7420
2. SUMMARY OF LOAN REQUEST:
Purpose: Early Alpine Academy is requesting a $165,200 loan from Prospera to
fund renovations, safety upgrades, classroom furniture, and marketing
efforts.
Loan Amount: $165,200
Interest Rate: 8.75%
Term: 60-months/5-year term - Principal and interest monthly payments of
$3,409 based on a 5-year amortization (estimated am).
Collateral: Real estate equity in personal home – 130 E Story Street, Bozeman, MT
(average of three real estate websites $817,433 - $507,550 mortgage =
$309,883 in equity)
Life Insurance: key person life insurance policy for Alan Moore
Business Insurance: Prospera will be added as Lender Loss Payee on business insurance.
Guarantors: Personal guaranty of Alan Moore
2% Loan Fees: $3,304
One-Time Service Fee: $500
Real Estate Title Work: ~$700
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3. Business Description:
Early Alpine Academy, a daycare center located in downtown Bozeman, currently serves almost 60
local families. Alan & Mary Moore are purchasing the business from XY Planning Network and plan to
expand into a second location to meet the rising demand for childcare in Bozeman, MT. This
expansion will allow the academy to separate age groups, improve accessibility, and create a more
enriching learning environment. With the expansion, the academy will be able to double its available
spots, thereby more effectively serving families. The phased approach includes completing key
renovations to obtain licensing, pilot the program over the summer, and fully launching in Fall 2025.
Early Alpine Academy is requesting a $165,200 loan from Prospera to fund renovations, safety
upgrades, classroom furniture, and marketing efforts.
The expansion of Early Alpine is a strategic step toward addressing the critical childcare shortage in
Bozeman. By doubling its capacity, improving accessibility, and enhancing early education quality,
the academy will provide much-needed support to local families and the community. With a well-
structured expansion plan, financial sustainability, and a deep commitment to child development, the
academy is confident in its ability to scale successfully.
4. BORROWER OVERVIEW:
Name(s) of Principal(s): Alan & Mary Moore
Legal Entity LLC
Business Early Alpine Academy
Primary Contact: Alan & Mary Moore
Business Address: 202 S Wilson Ave
Bozeman, MT 59715
Business Phone: (404)975-7420
Email: mary@storystreetcapital.com
Date Established 12/26/2024
EIN #: 33-2294379
Business Activity: Daycare facility
Ownership Distribution: 100% Alan Moore
Management Team: Mary Moore - operator
Current Jobs: 12
Projected Job Creation (net new): 3
2023 Annual Revenue New business
Other Financing (concurrent): XYPN loan for business purchase –
repayment starts in 2026 - $38,820 annually
Eligibility Factors: Located in the city of Bozeman
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5. SOURCE OF REPAYMENT:
Primary Cash Flow from Business
Secondary Global Cash Flow
Tertiary Guarantor, key person life insurance
6. STRENGTHS AND WEAKNESSES
Strengths:
• Increased Capacity: Doubling the number of available spots will help meet the high demand
for childcare in Bozeman, providing more families with access to quality early education.
• Improved Accessibility: Expanding to a second location and separating age groups can
make the academy more accessible and tailored to the developmental needs of different age
groups.
• Enhanced Learning Environment: The planned renovations and upgrades will create a more
enriching and safe environment for children.
• Community Support: Addressing the childcare shortage is a significant community need,
which can garner strong local support and goodwill.
• Experienced Leadership: Alan and Mary Moore's commitment and experience in child
development can drive the successful implementation of the expansion.
Weaknesses:
• Operational Challenges: Managing two locations can introduce complexities in operations,
staffing, and maintaining consistent quality across both sites.
• Licensing and Regulatory Hurdles: Obtaining the necessary licenses and meeting regulatory
requirements can be time-consuming and challenging.
• Job Market Competition: Keeping quality employees has been a concern across the Gallatin
Valley.
7. FEASIBILITY OF IMPACT ANALYSIS (JOBS & COMMUNITY BENEFIT):
• Job Creation: The expansion of Early Alpine Academy will create new job opportunities.
• Economic Stimulus: By hiring locally, the academy can contribute to the local economy, as
employees will spend their earnings within the community, supporting other businesses and
services.
• Addressing Childcare Shortage: By doubling its capacity, Early Alpine Academy will help
alleviate the critical shortage of childcare services in Bozeman, providing more families with
access to quality early education.
• Enhanced Child Development: Improved facilities and a more enriching learning environment
can positively impact children's development, preparing them better for future educational
success.
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• Support for Working Families: Reliable and accessible childcare enables parents to work or
pursue further education, contributing to the overall economic stability and growth of the
community.
• Long-term Benefits: Investing in early childhood education has long-term benefits, including
better educational outcomes, higher earning potential, and reduced social costs, which can
contribute to the overall well-being of the community.
8. COLLATERAL ANALYSIS SUMMARY:
Type of
Collateral
Valuation Source Date Available Equity
(net of prior
liens)
LTV
Real Estate - 130 E Story Street,
Bozeman, MT
$817,433 - $507,550
mortgage = $309,883
3 real estate websites
averaged
4/8/25 $309,883 53.3%
9. FINANCIAL ANALYSIS:
Renovations $90,000 Loan Funds $165,200
Operating Capital $75,200 Owners Contributions $4,504
Closing Costs $4,504
Total Funds Needed (uses) $159,704 Total Sources of Funds $159,704
Upon stressing the projections by 50% the DSCR remains at 1.60, 6.18, & 6.11respectively.
2025 2026 2027
Sales 1,362,491$ 1,883,749$ 1,883,749$
Less COGS
Less Expenses 1,258,492$ 1,400,070$ 1,400,070$
Net Income 103,999$ 483,679$ 483,679$
Net Income 103,999$ 483,679$ 483,679$
Add: Depr & Amort
Add: Interest 13,368$ 10,859$ 8,121$
EBITDA 117,367$ 494,538$ 491,800$
Interest:13,368$ 10,859$ 8,121$
Principal Pmts:27,543$ 30,053$ 32,790$
XYPN Loan 38,820$ 38,820$
Total Debt Service:40,911$ 40,911$ 40,911$
Margin post debt service:76,456$ 453,626$ 450,889$
DSCR 2.87 12.09 12.02
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10. GUARANTOR ANALYSIS/MANAGEMENT ANALYSIS:
Name Credit Scores Ownership %
Guarantor Alan Moore 741 100%
11. CONDITIONS OF APPROVAL:
Subject to:
1. The borrower will pay all loan closing costs and recording fees.
2. Quarterly Requirements: profit and loss and balance sheet statements with year-to-date
balances.
3. Annual Requirements: Due 120 days from the end of the fiscal year.
a. Year-end profit and loss statement and business balance sheet.
b. Company Income Tax Return for all business entities.
4. Sign up for ACH to make loan payments.
5. Life Insurance (either key person insurance policy or a collateral assignment on a current policy)
6. Lender Loss Payee on Business Insurance
Borrower:
_______________________________
Alan Moore Date