REDUCING FINANCIAL AND OPERATIONAL RISK
TO INCREASE OUR FINANCIAL SUSTAINABILITY
GOAL: RAISE $1.5 million TO RETIRE
THE DEBT BY 2030
CURRENT DEBT
e Forever Alpha Company is servicing approximately $3.2 million
of debt remaining from the extensive renovation of the house. e
loan will come to term in 2030, at which point the Forever Alpha
Company hopes to be in a position to pay off the remainder of
the loan.
THE CHALLENGE
At 95% capacity in the house, the revenue generated from dues,
room and board, and remaining campaign contributions currently
covers the operating expenses for the house and servicing the
debt. Fluctuations in revenue, such as less members living in the
house, will result in challenges paying on our debt obligations and
bank loan covenants. is was exacerbated in 2020 by occupancy
restrictions from the COVID pandemic, which resulted in
$250,000 in lost revenue and expenses. e need to systematically
reduce and eliminate the debt by 2030 is critical.
OUR PLAN
e Forever Alpha Company will continue with scheduled payments
for the length of the loan. Contributions from the campaign will help
cover additional payments on the loan and refinancing if the FAC can
secure better terms. Once the loan is repaid by 2030, it will alleviate
the financial stress on the operating budget.
THE LOAN
$3.2 million at a 3.54%,
10-year term loan with
20-year amortization
e FAC spends $150,000 to
$180,000 per year servicing
the debt
Interest is paid at
$8,000 per month
Loan comes to term
in 2030
4
