McDougal was also found by federal regulators to have made fraudulent loans with regard to his Castle Grande project, a real estate development 10 minutes south of Little Rock. The project was a lot on which he hoped to build microbrewery, shopping center, a trailer park, and other future projects in 1985. The sale price was $1.75 million. Since state regulations prohibited him from investing more than 6% of his savings-and-loan assets in the project, he put in $600,000 of Madison Guaranty money and had Seth Ward put in the difference, which was $1.15 million. Ward lent the money from Madison Guaranty as a non-recourse loan.