Financing Options

Listed below are some of the financing options for EIT. Particularly promising is #5a. However, we are waiting to hear from our lawyer as to the legalities involved. Please pray that we will hear from her soon and that this option will prove to be workable.


Minimum Need: $750K Ideal Situation: $1M

1. Collateralized loan
Problem: No access to collateral needed

2. Solicitation of Funds – this is being attempted at every level of known
possibility; an ongoing process
Problem: Has not yet produced funds

3. Mini bonds through St. Louis County Economic Council
Advantage: Issued at a lower interest rate than bank loans
Basic Process:
•SLCEC issues the bonds upon assurance that EIT has a bank to purchase them
•The moment SLCEC issues the bonds, a bank purchases them
•EIT then makes payments to the bank
Problem: Must be collateralized

4. Arrangement with Jefferson College:
$934,000 Purchase the building at its appraised value
$747,200 Finance 80% of the appraised value
$534,000 Then ask Jeffco to discount the price b/c of
needed improvements
$347,200 Use the difference in the financed amount and the
purchase price make improvements

$934,000 x 80% = $747,200
Used for improvements $347,200
Used for bldg purchase $400,000

5. 504 Loan – 90% government backed; need 10% collateral
Problem – this is a for profit loan and we have been assuming not-for-profit
status
Possible Solutions:
A. EIT becomes a for-profit entity and establishes itself as a Private
Christian School operations or consulting board.
• CCA and GLLLC would pay a small enough consulting fee to EIT for it to
show a profit but not enough to have to pay taxes
• CCA and GLLLC would be nonprofit entities
B. CCA becomes a for-profit entity knowing that they can expect a loss.
Any donations for educational purposes would be made through EIT so as
to be tax deductible.
C. GLLLC becomes a for-profit entity that uses all excess monies for:
• Capital improvements
• Contributions to CCA
• EIT Consultation
EIT and CCA remain nonprofit