The equipment company was founded in 2002. The Company has designed and manufactured tractors, specifically designed to haul sugar cane wagons from the harvest sites (world-wide) to the local sugar refineries, while being long-lasting, easy to maintain and operate, as well as providing increased safety for the operator. Subsequent years have seen the design and manufacture of different models of other tractors, planters, haulers, loaders most currently very heavy-duty earth-scraping tractors. The sale of spare parts by the equipment company has continued to grow as the equipment company fleet has continued to expand. The equipment company has experience strong domestic and international growth. The first significant disruption to the growth and success of their operation has come with the world-wide impact of the COVID-19 pandemic. Farms, plantations and corporations have felt significant down-turns in demand for their agricultural products. Columbia, for example, has significantly lowered its purchases of OEM equipment and especially for spare parts. While this equipment company enjoyed a good early 2020 because of a few orders for high-margin pineapple equipment, sales of tractors were almost non-existent. Sales for the rest of the 2020 year are projected to be down by as much as 50% of historical rates of received orders world-wide – all because of the effects of the Co-vid-19 pandemic. The current accounts payable aging portrays the effect that the pandemic has had on this equipment company as over $2,041,000 is stretched beyond acceptable terms of the suppliers. The equipment company estimates it is approximately 18 – 24 months away, based on historical buying habits of its agricultural based customers before performance is back to expected levels.
|Guaranty Type||USDA CARES|
|Loan Term||10 yrs|
|Participation Availability Amount||$ 225,000|
|Minimum Participation Amount||$ 225,000|
|Original Loan Amount||$ 4,500,000|
|Full Loan Documentation||Link|