11. What are the sources and manner of funding of the Nonprofit?
a. Donations shall be a large source of funding for the Nonprofit
b. Rent from a business located on the property is another source of funding
c. Private funding from the owners, Brad & Tracy Schroeder is another source of funding
13. Is the Nonprofit materially participating (regular, continuous, and substantial participation) in
theconstruction or rehabilitation and operation or management of the proposed facility?
a. Yes, we are participating on a daily basis in the construction, rehabilitation, operation
and management of the facility.
Additional Info:
Currently we have a lease option to buy the property. It is for sale at $400,000. It includes a small two
stall barn, large 3000SF facility where the other business is currently operating, several water pumps
have been installed on the land as well as septic tanks, underground electric and phone lines. There is
also a working water well that is already installed. A market analysis of the property shows that it could
be worth closer to $500,000 in it’s current condition. We would like to obtain an SBA loan to purchase
the property and build a larger 4000 sf barn with caretaker’s residence. The total amount financed for
this would be approximately $500,000. With the addition of a new 4000 sf barn and caretaker
residence, the value of the property would be greatly increased to approximately $750,000 giving us
approximately $250,000 in equity.
We have been paying rent on the property for two years and seven months at $600 per month for the
small loft located in the 3000sf building. This amounts to $24,800 that we’ve paid to date.
We have also personally paid for numerous upgrades to the small two stall barn and facility as well as
rescued two horses ourselves. The total amount we’ve spent personally is approximately $5,000 so far.
The company currently operating (and paying rent) is a local distillery that makes moonshine, whiskey,
vodka and gin. The company has been in operation for 12 years on the property. The company pays
rent to operate on the property. Rent is $888.92 per month.
With the personal rent, and business rent, our horse rescue would already have a guaranteed income of
$1488.92 per month. Also, the business rental agreement is expiring on December 31, 2018 and the
rent payment of $888.92 is going to increase to $1500.00 per month, giving us income of $2100.00 per
month.
We are applying for our 501 c 3 status this week and hope to have that approved by the end of August.
Thank you for your help with this and please contact me anytime for more information.