News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The UCDD Executive Committee approved a $292,000 loan to help a local company expanded its off-road vehicle manufacturing.
Appalachian Performance Engineering, also known as APE Built, will use the loan to purchase a building and neighboring company in Cookeville. Loan Officer Mindy Tramel said the total cost of the project will be $1,129,000.
“The borrower is purchasing the building where the business is currently renting space along with CWF Manufacturing, another business at the location,” Tramel said. “The building and CWF are owned by the same person. The borrower will continue to operate both businesses as separate entities.”
Tramel said APE Built specializes in high performance off-road vehicles and custom parts manufacturing. She said they will take a second lein on the building being purchased as well as a first lein on the equipment being purchased from CWF Manufacturing and a building already owned by APE Built.
“Our total discounted collateral value is $431,251 giving us a loan to value of sixty-eight percent,” Tramel said.
Tremel said their loan will have an interest rate of eight and half percent, a ten-year term, and an estimated monthly payment of $3,620.38.
Tramel said the borrower is also taking a loan from Pathway Lending for $782,000 with a prime rate minus three-quarters of a percent and a term of five years on a twenty-five year amortization.
“The borrower is contributing $55,000,” Tramel said. “This does not include a previous investment of the borrower’s of $8,200 which was comprised of $5,000 in earnest money and a $3,200 appraisal fee.”
