Question
The owner of a trucking company that does repair and maintenance on large trucks like armored vehicles and large tractor type trucks used for delivering
The owner of a trucking company that does repair and maintenance on large trucks like armored vehicles and large tractor type trucks used for delivering products is purchasing a new building for his business. The trucking company has been in business for 5 years doubling their dollar volume each year for the last 3 years. The SBA lender has requested a projection of what the owner thinks the business will achieve in growth over the next three years. Prepare a projection that would be acceptable by the SBA in order to lend the money with explanations of the answer. The loan amount is $2 Million dollars at 7% interest amortize over 25 years. The projection should show how much business is needed and at what percentage of profit and how much volume in dollars is needed in order to repay the mortgage payments. Utilize national averages for trucking companies in business today to reach your conclusion. Show what requirements the SBA uses to reach their conclusion to provide the loan.
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