8.0.-11.0. EDSR 11-13-1995 - Laserfiche WebLink

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Debt service for the project is outlined as follows: Source Annual Debt Service Primary Lender $ 7,869.00 EDA Micro Loan Real Estate Portion $ 1,772.75 Equipment Portion $ 5.700.50 $15,342.25 Micro Loan policy guidelines indicate that the interest rate for EDA loans will be tied to the lowest prime rate as published in the Wall Street Journal the day a loan is closed. Attracting investment and reinvestment to a community's central business district should offer additional incentives. In a recent letter to ECM Publishers, Inc., the city and EDA outlined the availability of Micro Loans from two sources that would carry interest rates below that of the stated policy guidelines. Toward that end, a similar below- market rate has been pursued by the Gallis. Company Income/Expenses/Cash Flow, Etc. According to the Vault's business plan, the break-even point for this venture is combined daily sales of 120 loaves retail and 100 loaves commercial. The ibusiness expects profitability by the fourth month of operation. Gross profit for year one and year two is projected at ($1,922) and $22,788 respectively. This profit/loss is in addition to Mr. Galli's salary as bakery manager. This information is evidenced from the pro forma income statement for the year ending April 31, 1997, which indicates sales of $120,120; gross margins of $19,260; and net income of($1,922). For the year ending April 31, 1998, retail and commercial sales are projected at $157,344; gross margins at $45,660; and net income at $27,788. For the year ending April 31, 1999, retail and commercial sales are projected at $196,592; gross margins at $78,016; and net income at $55,384. Mr. Galli has submitted multiple break even analysis illustrations. The first illustration indicates a break even point when 120 loaves are sold per day at a retail price of $2.60 per loaf and when 100 loaves are sold per clay at a commercial price of $1.50 per loaf. Another break even analysis (retail only) indicates that 180 loaves per day must be sold to break even. For commercial only, 300 loaves per day must be sold. Various other multiple scenarios suggest that break even points can be achieved when 160 loaves (retail) and 20 loaves (commercial) are sold per day; or when 140 loaves (retail) and 40 . loaves (commercial) are sold per day; or when 120 loaves (retail) and 80 loaves (commercial) are sold per day, etc.