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SBA Loan Analysis |
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SBA Loan Analysis |
| ANALYSIS | |||
What criteria do we use to make a sound business judgment on the two ways we have to implement all of the needed repairs and improvements? - with an SBA loan or without. |
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| Questions: | |||
| Which way would be the most expeditious way to get the work done? | |||
Which way would be the least costly to our homeowners? |
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What items would best represent the costs? |
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| 1) | costs of assessments | ||
| 2) | Interest (carrying charges) | ||
| 3) | costs of the improvements/repairs | ||
| 4) | costs of attorney opinion, mortgage recording etc(est. $300) | ||
| With a Loan | Without a loan | Difference | ||||
| *(est) Work finished: | December,2010 | December, 2011 | 1 yr | |||
| *Assessments: | $ 25,835.00($44.16 yr) | $ 41,900.00($360 0ne time) | $ 16,065.00 | |||
| *Repair expenditures: | $ 41,900.00 | $ 41,900.00 | - 0 - | |||
| *Loan expenses: | $ 4,753.00 (%) | - 0 - | $ 4,753.00 (%) | |||
| *Expenses prior to loan: | $ 6,671.00 | $ 6,671.00 | - 0 - |
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| *homeowner approval: | Yes | Yes | n/a | |||
| *loan payback: | Five years (EST) | None | 5 yrs | |||
| SUMMARY | ||||||
| Assessments: | $ 25,835.00 (includes%) | $ 16,065.00* | ||||
| Loan Expenses: | -0- | $ -4,753.00 | ||||
| Expenses: | $ 6,671.00 | $ 6,671.00 | - 0 - | |||
| Out of pocket: | $ 37,259.00 | $ 48,571.00 | $ 11,312.00 | |||
| *not needed from homeowners | ||||||
BENEFITS of Taking an SBA Loan: The major difference between taking out a SBA loan vs not doing so is most significant in the “out of pocket” costs savings of $16,065 in assessments to the individual homeowner. However, this amount can only be saved by paying down additional loan principal of at least $5,000.00 per year for the next few years. Additional Benefits Include: All designated projects will be completed by the end of the year. This will eliminate any doubts that the entire scope of work will be completed. Largest benefit: Unfortunately the Devon Hills Community has developed a reputation that may be a possible detriment to future home sales and home values. The stigma of homeowners having water issues in crawl spaces/yards exists & effects us all. Especially, since the flood of three months ago. We believe this bold forward step will help to turn potential sellers/buyers back to the positives of the DVC. |
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