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lmafales (Michelle Fales)

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City struggles to interpret Wicked Broadband's finances as it considers $300k loan guarantee

Dave, a banker will look at both the past financial income of a business along with any potential in the future. Startup loans are done based on the strength of the guarantor's financials and the what if "the business doesn't make it.". For an established business, I as a lender, will analyze the past financial strength of the company keeping in mind any future potential. But also remember any future projections are just that....projections. I am going to give much more strength to a company that has been in business for quite a few years and show over and over profits. If a company doesn't reflect profits in their current business plan; what is going to say they will show profits if they change their business plan? For startups and change in business models; banks are more likely to deny the loan or recommend the loan only with a SBA guaranty behind it. NMLS#780009

November 11, 2014 at 4:18 p.m. ( | suggest removal )

City struggles to interpret Wicked Broadband's finances as it considers $300k loan guarantee

Dave, a banker will look at both the past financial income of a business along with any potential in the future. Startup loans are done based on the strength of the guarantor's financials and the what if "the business doesn't make it.". For an established business, I as a lender, will analyze the past financial strength of the company keeping in mind any future potential. But also remember any future projections are just that....projections. I am going to give much more strength to a company that has been in business for quite a few years and show over and over profits. If a company doesn't reflect profits in their current business plan; what is going to say they will show profits if they change their business plan? For startups and change in business models; banks are more likely to deny the loan or recommend the loan only with a SBA guaranty behind it. NMLS#780009

November 11, 2014 at 4:18 p.m. ( | suggest removal )

City struggles to interpret Wicked Broadband's finances as it considers $300k loan guarantee

I am speaking about this deal as a loan officer. If a company applies for a loan, they have to provide their financials. I do not know what bank is requiring a guaranty from the city in order to provide this loan. I have seen three separate banks listed throughout the documents in the file. However, I as a lender would deny a loan for a company that can not qualify for a loan based on their or their guarantor's financials. The fact that Wicked has asked the city to be one of their guarantor's is something that I find surprising and personally a waste of our city's time.

I have been in touch with the commissioners and advised them that they should be looking at this request thru the eyes of a lender. They should be provided all the actual financials for review, including the guarantors' personal financial statement and credit report. The fact that Wicked doesn't want their financials to be public, when they are asking for public funds to stand behind their loan request, I find reason enough to deny this request.

I did ask for the consultant's report to review. While it generalizes quite a bit, I alone by review, would not have gone any further with this request (if I was on the IRB) when it was first presented to the IRB. The fact that three members of that board decided to take this further totally surprised me. I am glad that Linda Jalenak and Mike Amyx were voices of reason. I have written to all the commissioners on this and told them that if they felt so comfortable with this guaranty, that they needed to ask themselves "would you personally stand behind this debt as a guarantor"? If the answer is no, that they should not be doing the same with the city's (our) funds.

I encourage all of you that are not in favor of this guaranty to send an email to the commissioners now. Their job is to speak for the citizens of our town but if they don't hear from you, they don't always know how to speak.

Disclaimer: I as a lender have not ever reviewed a request for a loan request for Wicked Broadband, Kris Adair or Joshua Montgomery. Therefore I have not been privy to their financials. NMLS#780009

November 9, 2014 at 10:45 a.m. ( | suggest removal )

City to consider $1 million loan guarantee for downtown, East Lawrence broadband project

Here is the link to the City Commission agenda and attachments for tomorrow night:
http://lawrenceks.org/assets/agendas/...

September 8, 2014 at 9:18 p.m. ( | suggest removal )

City to consider $1 million loan guarantee for downtown, East Lawrence broadband project

Dave, I believe the reason that WB is asking for the loan guarantee is upon the request of their bank. From what I have read, WB does not qualify for a loan based on their own financial strength or prior financials. Thus the bank told them they would give them the loan if they could obtain the guarantee from the city. The question we should all be asking ourselves is whether we want the city using our money to pay back this debt should WB default on their loan?

September 8, 2014 at 9:15 p.m. ( | suggest removal )

Editorial: Park process

Richard, it wasn't a fine. He agreed in a settlement to pay the $50,000. See attached....
http://www2.ljworld.com/news/2013/jun...

December 15, 2013 at 9:54 a.m. ( | suggest removal )

High school game-day T-shirts cause stir

Gary, just want to fill you in on a situation several years ago. FSHS had an exchange student playing on their basketball team and he was good. At the LHS/FSHS, the LHS students hung up posters that said "XXX, go back home where you belong". I as a parent found that unwelcoming and offensive. Didn't matter which side of 15th street I was on. I sent an email to both principals about the situation. The reply I got back was "both schools do offensive things and kids will be kids." Still not satisfield with that response. But LJ World who did cover that game did not say one thing in the paper about that situation. That being said, we as parents, are the individuals ultimately responsible for teaching our children right vs. wrong. While kids will be kids, do you think this perception of us vs them; rich vs. poor was all dreamed up by the students or is this a perception that comes down from the adults? Just something to ponder....

November 11, 2013 at 10:02 a.m. ( | suggest removal )

Lawrence High School's forensics program ranked among country's best

Congratulations to Lawrence High and Jeff. Well deserved!!!

October 24, 2013 at 8:52 p.m. ( | suggest removal )

Longtime leader of Ballard Center resigning to focus on recovery from breast cancer

Dianne, wishing you the best as you focus on your health. Thank you for your service to Ballard Center. I will pray you have a quick recovery.

October 17, 2013 at 9:03 p.m. ( | suggest removal )

Election Night Updates: Final unofficial: Amyx, Farmer, Riordan; School bond rolls to victory

Thanks Chad for the continuous updates. Appreciate it.

April 2, 2013 at 9:27 p.m. ( | suggest removal )

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