HomeMy WebLinkAbout10-20-11 Prospera Revolving Loan Fund Committee Minutes Prospera Business Network
Bozeman Revolving Loan Fund —Loan Review Committee
Meeting Minutes: October 20th 2011
First Security Bank (downtown)
3:00 pm — 4:00 pm
Committee Members Present:Jack Thompson,Tracy Menuez,Brit Fontenot,Kathleen Tonkovich,Gary
Sisson
Committee Members Absent (excused): Chris Mehl
Prospera Staff Present: Stuart Leidner
Guests: Dan Bettencourt (Wells Fargo Bank),Kim Ormsby(Natural Bab,Company), and Troy Paulson
(Natural Baby Company)
A. Call to Order/Introductions
The meeting was called to order at 3:00 pm by Stuart Leidne present ma �roductions.
B. Public Comment
A moment was given to allow for any public corn f t ose endance. Hearing none the public
comment session was closed.
C: Approval of Minutes—August 20
Minutes were presented. There wa disc or ges to the minutes by the committee. Stuart
called for a motion to approve the as presented. Ms.Menuez made the motion. Ms
Tonkovich second. The m o� �� � 1111���111°,ously.
D: Action Items
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1. Review Loan Subordin Re st—Kim Ormsby,Natural Baby Company
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Stuart provided the loan committee with the parameters of loan subordination request. At this time the loan
committee heard a presentation from Dan Bettencourt (Wells Fargo) on behalf of Natural Baby Company
and Wells Fargo bank to whom the subordination would be granted. Dan reviewed the banks request and
their financial analysis of the Natural Baby Company. The loan committee asked questions regarding the
extent of the new loans and total amounts.
Mr. Fontenot queried the loan recipient regarding what the new capital infusion would mean for job creation.
Ms. Ormsby replied that they anticipate adding an additional 4-6 jobs as a result of their growth and with the
assistance of the new working capital.
Mr.Thompson asked whether or not the bank would impose salary restrictions or other similar mechanisms
as part of their loan package. Mr. Bettencourt replied that they would not.
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Mr.Thompson asked what would happen if the subordination was not approved and whether or not the
bank had considered paying off the Prospera loan as part of the refinancing package. Mr. Bettencourt
indicated that the project would not move forward at this time as the bank and the SBA required the
subordination. Refinancing had been considered but wasn't part of the current package.
Mr.Leidner asked for clarification on the SBA guaranty for this loan. Mr. Bettencourt responded that the
SBA would provide a 75%guarantee on the larger term loan and a 50%guaranty on the SBA express line.
With no further questions or comments from either the committee or the loan recipient,Mr.Leidner as
Presiding Officer—noted,"Considering the nature of the discussion that will hereby take place with regards to
the matter of the loan recipients tax returns and financials,I hereby find the right of individual privacy of the
applicants (Kim Ormsby,Natural Baby),exceeds the merits of the public disclosure and, as a deliberative
discussion of these items is necessary for the Committee to make a reaso Odecision on the application,I
hereby close the meeting pursuant to Sect. 2-3-203(3),MCA,during t e the Committee will discuss the
privacy interest of the applicant. In addition,I find a closed meetin the discussion of the
subordination request is a reasonable means to protect the prop rights e applicants. The Committee
will open the meeting to make a final decision on the applicat'
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The meeting was reopened to make final decisions regar e 1 applications. As no public was in
attendance,the Chair proceeded with the meeting as no pub ment was made.
1. Natural Baby Company-Loan Subordinati t
Mr.Leidner called for a motion. The foll moti s made by Mr. Thompson;"The request by the
Natural Baby Company to Prospera to or to th oan position is denied, and furthermore we prefer
to have Wells Fargo pay off the Bo an Rev ing L fund through Prospera Business Network." Mr.
Fontenot seconded the motion.
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Under discussion,Ms.To )d.
e public record that the intent of this loan fund was to assist
start ups or existing bus s that n who have trouble finding traditional financing. When
Natural Baby Company Via y obtained funding through this fund they fit within that niche,and
have now graduated from �fL
With no further discussion Mr. er called for the vote. The motion passed unanimously.
E. FYI/Discussion
Mr.Leidner noted that Erin Gallinger (Wells Fargo) had been nominated by the Prospera Board of Directors
to serve on the loan committee. He will begin his term at the next loan committee meeting. Mr. Ga]]inger
did not attend this meeting due to short notice of the approval by the board and the conflict of interest he
would have had with regards to the discussion at hand.
F. Adjournment
The meeting was adjourned at 3:45pm.
Minutes Approved On: DRAFT
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