Royal Engineering Tech

& Royal Solutions

Loan Details & Repayment Capability

Comprehensive analysis of loan requirements, repayment capability, and risk mitigation strategies

Loan Structure & Terms

Comprehensive $3.5M loan structure leveraging Indian Loan Guarantee Program benefits for optimal terms and reduced lender risk.

Loan Amount

$3,500,000

Total funding requirement for comprehensive business implementation

Loan Term

10 Years

Extended term leveraging Indian Loan Guarantee Program benefits

Interest Rate

6.0%

Competitive rate with federal guarantee backing and tribal status

Guarantee Coverage

90%

Federal guarantee through Indian Loan Guarantee Program

Loan Payment Structure

$38,832

Monthly Payment

$465,988

Annual Payment

$4,659,883

Total Payments

$1,159,883

Total Interest

Indian Loan Guarantee Program Benefits

For Columbia Bank:

  • • 90% federal guarantee ($3,150,000 guaranteed)
  • • Only $350,000 at-risk exposure
  • • Streamlined approval process
  • • Government backing enhances portfolio

For Royal Engineering:

  • • Competitive 6% interest rate
  • • Extended 10-year term
  • • Flexible collateral requirements
  • • Enhanced approval probability

Debt Service Coverage Analysis

Strong debt service coverage ratios demonstrating robust repayment capability and financial stability

Debt Service Coverage Ratio Trends

0.57x

Year 1 Coverage

Initial ramp-up period

2.45x

Year 3 Coverage

Strong improvement

10.64x

Year 10 Coverage

Excellent coverage

Repayment Summary

Annual Debt Service:$465,988
10-Year Total Payments:$4,659,880
10-Year Total Net Income:$22,383,897
Coverage Multiple:4.8x

Risk Mitigation

  • ✓Diversified revenue streams reduce dependency risk
  • ✓Immediate Bitcoin mining cash flow provides stability
  • ✓90% federal guarantee reduces lender exposure
  • ✓Conservative growth projections build in safety margin
  • ✓Tangible asset collateral provides additional security

Risk Analysis & Mitigation

Comprehensive risk assessment with detailed mitigation strategies ensuring loan security and business stability

Market Risks

Medium Risk

Identified Risks:

  • •Cryptocurrency market volatility affecting Bitcoin mining profitability
  • •AI services market competition and pricing pressure
  • •Waste management regulatory changes
  • •Economic downturn reducing customer demand

Mitigation Strategies:

  • ✓Diversified revenue streams reduce single-market dependency
  • ✓Long-term contracts provide revenue stability
  • ✓Conservative projections build in market volatility
  • ✓Multiple customer segments spread risk

Operational Risks

Low-Medium Risk

Identified Risks:

  • •Equipment failure or maintenance issues
  • •Key personnel departure or unavailability
  • •Supply chain disruptions for equipment or materials
  • •Utility cost increases affecting profitability

Mitigation Strategies:

  • ✓Redundant equipment and maintenance contracts
  • ✓Cross-trained staff and succession planning
  • ✓Multiple supplier relationships and inventory buffers
  • ✓Energy-efficient equipment and renewable energy integration

Financial Risks

Low Risk

Identified Risks:

  • •Cash flow timing mismatches in early phases
  • •Interest rate increases affecting loan costs
  • •Customer payment delays or defaults
  • •Higher than expected startup costs

Mitigation Strategies:

  • ✓Working capital reserve and credit facilities
  • ✓Fixed interest rate loan structure
  • ✓Diversified customer base and payment terms
  • ✓Detailed cost analysis and contingency reserves

Competitive Risks

Medium Risk

Identified Risks:

  • •New market entrants with similar business models
  • •Technology disruption in target markets
  • •Customer switching to competitive solutions
  • •Pricing pressure from established competitors

Mitigation Strategies:

  • ✓First-mover advantage and tribal ownership benefits
  • ✓Continuous technology investment and innovation
  • ✓Strong customer relationships and long-term contracts
  • ✓Unique integrated approach difficult to replicate

Overall Risk Assessment

Low-Medium Overall Risk

Comprehensive risk mitigation strategies and diversified business model provide strong protection

Key Risk Mitigation Strengths

✓90% federal loan guarantee significantly reduces lender risk
✓Diversified revenue streams across multiple growing markets
✓Immediate cash flow generation from Bitcoin mining
✓Tribal ownership provides unique competitive advantages
✓Conservative financial projections build in safety margins