Our client is the owner of a chain of markets serving a predominantly Latino population. It has been in business since 1987. Gross sales for 2014 were $9.9 million. The company showed low assets and significant losses in their corporate tax return for 2012-14. In order to open a new location, they applied for a commercial real estate loan. Their application was declined by two major banks stating insufficient cash flow to cover the loan repayment.
- Streamline supply chain and inventory management.
- Open a new location.
$725,000 for construction, leasehold improvements, inventory, and equipment.
- Restatement of the company’s financial documents for the previous three years.
- Preparation and submission of amended tax returns for 2012 and 2013.
- Updated Executive Summary with a detailed report on Use of Funds.
- Updated Projections aligned with past growth trends.
- Developed and implemented Debt Service Coverage (DSC) Ratio.
- Monitor monthly Profit & Loss Statements in accordance with DSC Ratio.
- After four months, submission of 2014 tax returns.
An SBA-guaranteed 504 loan for $634,000 at 4.275% with an amortization period of 25 years.