Financial model

Working capital — $2,000,000 is the most that is reasonable

The plan does not say “Ameridura needs enough cash to manufacture every house it sells.” The plan says Ameridura uses customer deposits, operating capital and a revolving working-capital facility to finance the production cycle between contract award and final delivery and payment.

The ask is sized to engineering, certification, digital backbone, payroll float, initial inventory, insurance, marketing launch, the first-article pad, and $400,000 of unspent cash reserve. Draws follow invoices. A 12-month burn schedule is in this plan.

Phase I uses stay $5,000,000. The 7(a) working-capital stack is $875,000 spent to stand the plant up and $925,000 of operating float. Those two numbers are $1,800,000. Cash reserve is $400,000 because a factory that stops is more expensive than a prettier machine. The $100,000 Ameridura Homes launch is a desk, not CAC.

A. Startup operating working capital is this note. B. Production / order working capital is 7(a) Working Capital Pilot after twelve months. WCP is not part of the $5,000,000 Phase I ask. The company has zero months of operations.

This application — SBA 7(a) working capital inside the $5.0 million Phase I project. After 12 full months of operations, timely financial statements, A/R and A/P aging, and inventory reports — 7(a) Working Capital Pilot.

SBA currently limits WCP to businesses with at least 12 full months of operations before filing, able to produce timely financial statements plus accounts-receivable aging, accounts-payable aging, and inventory reports.

With 25% deposits before production release, 60 days of commissioned WIP (10 homes at mix-weighted designed cost $125,320) is $803,330. Mix-weighted factory-gate is $179,947; the deposit is $44,987; the production gap per house is $80,333. The $925,000 operating float covers that commissioning cycle. It is not sized to warehouse a 100-home developer PO in cash.

With zero deposits — today’s pipeline — 60 days is $1,253,200 and 90 days is $1,879,800. Deposits are taken before production release so the plant is not trying to float $1,879,800 on $925,000.

Those four lines are $1,800,000 — the ITL cap. They do not overlap.

Committed homes and deposits are zero until a purchase agreement exists. Startup 7(a) working capital floats commissioning WIP. Large developer POs are why Working Capital Pilot exists later — after 12 months of operations.

Do not ask for more than the cap

• $5 million of working capital / Working Capital Pilot on day one. WCP is a monitored project line for borrowers with 12 months of operations and timely financials. This company has zero months. Asking for it now makes the file look like a working-capital loan dressed as a plant.
• A working-capital line larger than the $1.8 million startup schedule. This note funds plant stand-up. Production / order financing on large developer contracts is a later 7(a) Working Capital Pilot after 12 months of operations.
• A second $5 million to buy lots. Factory uses do not warehouse vacant land. Builders CAPLine and a land facility are later, licensed-construction products.
• A $5 million MARC line stacked on a $5 million ITL. MARC is the right manufacturer revolver for steel and WIP after the plant is running. Combined 7(a) guaranteed-balance caps still apply. Preferred stack is 504 on real estate plus a $2.80 million 7(a). MARC is a year-two conversation, not this application.

Later products — not this application

• MARC (Manufacturers’ Access to Revolving Credit). After the line is producing and inventory reports exist. Revolving steel, forms, fasteners, module WIP. SBA built it for NAICS 31–33. It does not replace the 7(a) equipment note.
• 7(a) Working Capital Pilot. After 12 full months of operations, timely financials, A/R and A/P aging, and inventory reports. Transaction-based production / order line for manufacturer contracts — deposits, eligible materials, labor, freight — revolving as lots deliver. Domestic and export can sit on one line. Not Paparazzi. Not day-one factory capital. A licensed construction affiliate’s on-site homebuilder use, if any, is a separate file after the same 12-month test.
• Builders CAPLine. After a licensed construction operation and for-resale projects exist. On-site construction for resale. Not factory WIP.

$195,000 of Year-1 iron is rented so this cash can float houses: Second Class 8 tractor (older used); Step-deck trailer; Reach truck; Mini excavator (used); Skid steer (used); Utility / equipment trailer; Plate compactors; Telehandler (used); Heavy-duty pickup.

How many homes this plant ships

Ameridura Manufacturing Company is a Louisiana benefit corporation and a U.S. housing manufacturer. The factory is in New Orleans East. The product is factory-built ICF modular homes — IRC as adopted by Louisiana, on a permanent foundation. One 40,000-SF line. Autodesk BIM, OpenUSD interchange, NVIDIA compute — every house a digital twin. Developers buy the house at one price. Families we sell at fair market. Dealers cover geography.

Developers and certified dealers/builders buy the house at one factory-gate price. They already pay for the land. Families we sell at fair market value for the house. Licensed builders who keep the jobsite buy manufactured assemblies — walls, cassettes, wet cores, cabinets, openings — at factory-gate. A Realtor is an introduction, not the engine.

This 40,000-SF plant ships 10–12 homes a month on one mature shift (120–144 a year) and 20–24 on two shifts (240–288 a year). Published three-shift complete-home band is 40–45 (480–540). Up to 50 PE/month is the post-validation target — not the note.

FY2027 books 30 complete homes: six months of commissioning, then 4–6 a month. That is how the plant opens. Mature identity is 50 home-equivalent slots a month — 60% standardized, 20% kits, 15% custom, 5% commercial.

Land developers sell several homes a year — sometimes 20, 50, 100+. They pay one price per square foot. They already pay for the land. That is volume. Names go on the register when the letter is signed. 24 is the late-start downside: commissioning slips, the line runs about six months. It is not the operating plan.

Housing offtake target: 4–6 letters totaling 36–48 named homes before full equipment draw (floor: 3 letters / 24 homes). A hospitality letter in Appendix O does not count. Committed homes remain zero until a purchase agreement and deposit exist.

Use of proceeds

Matches the $5M nothing-left-out schedule. Land, 40,000-SF building, and site are 504-eligible. Working capital inside an ITL is asked at the $2 million cap — the most that is reasonable, and the most the note will carry. Cash equity of at least 10% of total project costs is additional — the ceiling is not quietly raised.

Illustrative blended rate on 504 debenture plus 7(a) term — subject to market and lender pricing

Year-three operating cases — designed two-shift factory

FY2027 books 30 complete homes: six months of commissioning and first article, then 4–6 homes per month. FY2028 books 120 on a mature one shift — the first full P&I year. FY2029 books 240 on two shifts (20/month inside the 20–24 designed band) — 100 Louisiana DTC and 140 national B2B. That two-shift rate is the underwriting case. FY2030–FY2031 book 480 complete homes (40/month), plus 120 kit slots (50 home-equivalent slots/month). 600 HE is not 600 houses. Kit dollars are not in the credit-case P&L. Published three-shift complete-home band is 40–45. Up to 50 production-equivalent units/month is the design target after process validation — not underwritten.

Draws follow invoices. Three-shift is available on this floor and is not required to repay.

• Year-three operating case. 100 Louisiana DTC + 140 national B2B. No affiliate revenue. Stabilized debt service.
• Same prices and designed-cost architecture. Second shift slower. Stabilized debt service.
• Plant does not leave commissioned rate. Sticky opex. Stabilized debt service still on the books.

Late plant — 24 homes

24 homes is a late plant — about six months of commissioned output, not the operating plan. Sticky opex floor stays on. This is the cash-survival question: how long the $500,000 equity plus $400,000 operating reserve last if the line does not reach the booked 30 homes.

Base 24-month trough $401,004. Late-plant FY2027: 24 homes, $4,761,734 revenue, $136,983 EBITDA, 0.46× DSCR. Trough $67,950. Cash stays non-negative on this planning simplification.

Committee conditions

Encoded evidence versus closing documents that do not exist yet. The bank does not underwrite a narrative.

• No production-related advance beyond approved installation milestones until Louisiana Act 765 manufacturer, dealer, salesman and qualifying-party licenses are evidenced.
• No full equipment draw until offtake meets the pipeline floor (3 housing letters / 24 homes) or the lender’s substitute.
• No major machine purchase until a vendor quotation matching the internal SKU is in the file.
• Real-estate advances follow survey, title, environmental, flood determination and as-completed appraisal / BPO.
• Equity injection wired to the manufacturer account, source-of-funds documented, before or at closing as the lender structures it.

Planning collateral coverage 0.34× on liquidation haircuts — not an appraisal.

Five-year operating model

Manufacturing only. Zero affiliate placeholder. Factory-gate ($112/SF) — one price — to developers and certified dealers; they already pay for the land. Fair-market house ($125/SF) to families. A Realtor is an introduction, not the engine. FY2027 is 30 commissioned homes. $100,000 launches the brand — website, kits, CRM, first national digital. That is a launch check, not CAC. Operating marketing is about 2.5% of a two-shift factory. Housing-partner invoices are zero until a named letter exists. SKU mix is in the business plan.

• Manufacturing-only. House invoices plus manufactured-assembly invoices. Zero uncontracted affiliate or ‘other’ revenue. Paparazzi Marketing Group LLC receipts are not in this P&L.
• Complete homes: developers and certified dealers at one factory-gate price ($112/SF) — they already pay for the land. Families at fair-market house ticket ($125/SF). Licensed builders who keep the jobsite buy manufactured assemblies at factory-gate. A Realtor is an introduction, not the engine.
• SKU mix is explicit (The 1,250, The 1,500, The 1,850, The 2,100 in Year 1; The 2,500 and The 2,750 on-deck). Average revenue per home is mix-weighted living SF × house ticket — not Champion’s $93k HUD-code ASP and not a $175k planning guess. Assembly revenue is a separate line and is not extra homes.
• Factory COGS starts at the designed BOM. Annual efficiency factors are labeled. The $50/SF objective is a cost-down program, not this forecast.
• Ameridura funds its own marketing. Phase I launch is $100,000 inside the $5M uses. Operating years book 2.5–3.5% of sales as a named marketing line — not an affiliate invoice. Realtor commissions stay separate (10–14% EBITDA target still applies).
• FY2027 books 30 homes after a six-month installation and first-article period. Production months run at 4–6 homes per month.
• FY2027 debt service is partial-year. Stabilized annual debt service of $595,000 starts FY2028.
• DSCR uses EBITDA as a simplified proxy. Net income is EBITDA − debt service, taxed at 21% — a planning proxy, not a tax return.
• Two commercial channels: Louisiana DTC at $125/SF and national B2B at $112/SF factory-gate. Manufactured assemblies are a separate invoice.

Example $12.5 million owner-occupied plant (land and building only) plus the $5 million ITL for equipment and working capital.

504 finances the factory and long-life equipment — permanent American manufacturing capacity. ITL finances the production line, modernization, and working capital (≤ $2 million). Do not finance the same assets twice.

FY2026 manufacturing fee advantage (not the reason for the loan): For qualifying manufacturing 504 loans in FY2026, SBA set the upfront fee and the annual service fee at 0%. Window: October 1, 2025 through September 30, 2026. Illustrative SBA guarantee-fee contrast on a $5 million debenture: about $25,000. Not the reason for the loan. An additional economic benefit of financing the manufacturing expansion now, if a CDC can still obtain SBA approval inside the window.