SBA 7(a) Loan Application Package

Main Street Bakery LLC is a 7-year-old artisan bakery and cafe located at 142 Oak Avenue in Springfield, Illinois. Founded by Maria Santos in March 2019, the business has grown from a single-oven operation into a full-service bakery serving over 300 customers daily with fresh breads, pastries, custom cakes, and specialty coffee drinks. The bakery employs 12 team members and generated $540,000 in annual revenue in 2025, with net income of $96,000 (17.8% net margin).

Main Street Bakery is requesting an SBA 7(a) loan of $150,000 to fund critical equipment upgrades and bolster working capital. The funds will be deployed across three categories: a commercial convection oven and industrial mixer ($65,000), a walk-in refrigeration unit ($35,000), and six months of working capital reserves ($50,000). These investments will increase daily production capacity by approximately 40%, enabling the bakery to fulfill growing wholesale demand from three local restaurants and a regional grocery chain.

The business demonstrates strong debt service capacity with a DSCR of 2.26x, well above the SBA minimum threshold of 1.25x. Year-over-year revenue has grown at 14% annually since 2021. Three-year projections show revenue reaching $615,000 in Year 1 (post-expansion), $700,000 in Year 2, and $798,000 in Year 3, driven by expanded wholesale channels and increased daily foot traffic from an enhanced product line. Ms. Santos has invested $85,000 of personal capital into the business and holds a personal net worth of $280,500, providing meaningful personal stake and financial cushion.

Main Street Bakery operates from a leased storefront in downtown Springfield's historic commercial district, one block from the Sangamon County Courthouse. The location benefits from heavy weekday foot traffic from government workers, professionals, and downtown residents. The facility includes a 1,200 sq ft customer-facing retail area with seating for 24, and a 1,200 sq ft production kitchen equipped for high-volume baking operations.

The bakery was founded on a mission to bring European-style artisan breads and pastries to central Illinois using locally sourced ingredients. Maria Santos trained at the French Pastry School in Chicago before returning to her hometown. The business has built a loyal customer base through consistent quality, community involvement, and a growing catering and wholesale division.

Industry benchmark for bakery/cafe net margin: 5-8%. Main Street Bakery's net margin after owner draw is trending toward the lower end but improving year over year. Gross margin of 65% is strong for the category, reflecting effective ingredient sourcing and pricing strategy.

Equipment will be purchased, delivered, and installed within the first 60 days of loan disbursement. The new oven and mixer increase daily production capacity from 400 to 560 units, directly supporting the wholesale expansion pipeline. Working capital reserves ensure the business maintains minimum 90-day operating runway during the capacity transition period.

DSCR of 2.26x exceeds the SBA minimum threshold of 1.25x by a wide margin. Even under a conservative scenario with 15% revenue reduction, DSCR remains at 1.72x. The business generates sufficient cash flow to service all existing and proposed debt obligations while maintaining adequate operating reserves.

Maria Santos, President and CEO, brings 15 years of professional baking experience to Main Street Bakery. Ms. Santos graduated from the French Pastry School in Chicago (2010) and spent five years as head baker at Artisan Breads of Naperville before relocating to Springfield to open her own business. She holds a ServSafe Manager Certification, an Illinois Food Service Sanitation License, and completed the Goldman Sachs 10,000 Small Businesses program in 2022.

Under her leadership, Main Street Bakery has grown revenue from $180,000 in its first full year to $540,000 in 2025, a compound annual growth rate of 20%. She manages all aspects of operations, including recipe development, vendor relationships, staffing, and financial management. Ms. Santos serves on the Springfield Downtown Business Alliance board and was named Springfield Business Journal's "40 Under 40" in 2024.

Key staff includes Head Baker James Chen (8 years experience, specializing in artisan breads) and Front of House Manager Diana Reeves (5 years retail food service management). The loan-funded expansion will require hiring 2 additional production staff and 1 delivery driver within 90 days of equipment installation.