Answer questions 15-14 and 15-16

Case Study Sweet Success-The Gelato Fiasco Scoops Up Financing Bentley University graduates Josh Davis and improvements, only to have the loan application Bruno Tropeano were determined to discover the rejected due to insufficient collateral. They were traditional techniques for making Italian gelato. astonished and greatly disappointed. Over the They researched the product and experimented next eight weeks, they received five or six "no's" with innovative flavors, eventually creating recipes from other banks, reaching a point where funds for over 1,000 flavors. After submitting 22 appli- were desperately needed. cations to banks for loans, they received fund- Fortunately, they found Coastal Enterprises, ing from Camden National Bank to bring their Inc., a Maine-based Community Development "Italian ice cream" to Brunswick, Maine. They Financial Institution that had received loan opened a retail shop in 2007 and began to build funds through Create Jobs for USA, a partnership wholesale distribution at that time. between Starbucks and the Opportunity Finance Network. It took two weeks from application to approval, and The Gelato Fiasco had $140,000 in financing. In addition, Josh and Bruno tapped the Maine Seed Capital Tax Credit Program to acquire some $600,000 in private investments for company growth in 2012. The Gelato Fiasco has been recognized with an Empact 100 Award, the James Beard Founda- tion, the Associated Press, Food Network maga- zine, Everyday with Rachael Ray, and several "Best of" contests. From their two locations in Maine, Josh and Bruno sell their gelato and sorbetto to customers throughout New England (Connecti- cut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont). They also have a mobile unit for catering. apelavi/Fotolia With timely financing, The Gelato Fiasco has been experiencing the sweet taste of success. Four years later, Josh and Bruno had the knowledge, skills, and experience to create deli- Case Study Analysis 15-14. Why did Josh and Bruno turn to Coastal cious gelato treats and operate their business. Enterprises as a source of capital for They were ready to take the business to the next level. They decided to expand into Portland, their business? 26 miles away, and spent eight months searching 15-15. Did the Maine Seed Capital Tax Credit for the best location. They found that spot, but Program provide 100 percent of the one critical ingredient was needed to bring their financing? If not, how much did it dream to reality: money. provide? How do you know? Josh and Bruno had built a banking relation- 15-16. What factors made The Gelato Fiasco a ship, including loans that they repaid on time. business that did not qualify for main- They went to their banker with a proposal, toured stream bank financing (specifically the site together, and received encouraging feed- discuss the Cs of credit)? back. On that basis, Josh and Bruno signed the 15-17. When, if ever, would you advise Josh and lease for The Gelato Fiasco and began leasehold Bruno to approach mainstream lenders