Bank Loan Request for Small Business

EXECUTIVE SUMMARY

ADVENTURE WORKS Design and Construction Inc. is a high-end design and remodeling firm with a reputation for integrity, quality craftsmanship, and excellence in management. In three years annual sales have increased to be well over a million dollars.

ADVENTURE WORKS Design and Construction Services was formed by Brian Groth as a Sole Proprietorship in December 1997. In 1998 a combination of activities involving residential design, consulting, and general construction brought Gross Sales of $250,000.

The Company experienced steady growth since its inception, and incorporated in March 1999, (see Appendix 6, Articles of Incorporation). In 1999 Gross Sales of $750,000 were achieved. In 2000, signed contracts show that Gross Sales are expected to be $1,300,000 (see Appendix 2, current Backlog).

The Company has its address in leased premises at 1234 A Street, Somewhereville, AB 12345. Its activities fall under the Standard Industrial Classification SIC 1521 and 1522. The owners are Brian Groth and Nancy Doe.

ADVENTURE WORKS Design and Construction is involved in four distinct activities:

1. Architectural Design

2. Residential & Light Commercial Construction

3. Property Services

4. Retail Floor Coverings (see Appendix 4).

Eighty to ninety percent of the Gross Sales are in design and construction. At the moment (May 2000) there are 25 permanent employees on the payroll and 10 subcontracted workers excluding subcontracting companies (see Appendix 1 for resumes).

The company's Short Term Objectives (within the next three years) are to increase activity in all Divisions, and to achieve annual profit, net after taxes, of $200,000 by 2003. Its Long term objectives are: to maintain the level of current business achieved up to 2003, and then to move into historical restorations, more light commercial work, and increased new custom home construction.

To implement these objectives the company needs:

1. A loan of $100,000 at Prime plus 2%. This loan to be used for current near term expenses including .........., ........... and.......... It will be repaid in five years.

2. A line of credit of $50,000 to take advantage of discounts available, avoid associated penalties, and expand into high profit areas requiring positive cash flow.

The prospects for ADVENTURE WORKS Design and Construction's continued growth are excellent, with 2000 construction and design contracts underway already exceeding $550,000 (see Appendix 2, Backlog 2000).

For equity the company has assets of $227,000 (see Appendix 9, Balance Sheet as of mm/dd/2000). Additionally the company's owners are willing to offer as collateral a second mortgage on a residence with an estimated equity of $150,000. The address of this residence is Street Address, City ST