Loan Proposal for LittleTree Kinderhouse Ltd. Expansion
Dear Potential Lenders and Donors,
LittleTree Kinderhouse Ltd., a successful daycare provider with five years of proven excellence, is excited to announce an expansion project aimed at doubling our current capacity and revenue. In order to achieve this significant milestone, we are seeking financial support from private lenders and donors who share our vision for high-quality childcare services in our community.
Request Details:
- Amount Needed: $100,000 by June 30th, 2024
- Loan Period: 2 years
- Return on Investment: Negotiable percentage for lenders
- Tax Benefits: Donors will receive tax receipts
Terms of the Loan:
- Advance Date: June 30th, 2024
- Initial Term: 6 months with no payments
- Interest Terms: Following the initial grace period of 6 months, x% interest to be paid in monthly installments until the loan is fully repaid
- Repayment Deadline: Loan must be repaid in full no later than December 30, 2027
Borrower Information:
- Borrowers: LittleTree Kinderhouse Ltd. and Alexandra Hamilton
- Current Lender: RBC
- Licensed by: Interior Health BC
Purpose of the Loan: The funds will be utilized to expand our daycare facilities, effectively doubling the available spaces and subsequently increasing our revenue streams. This expansion will not only benefit our business but also meet the growing demand for quality childcare services in our area.
We invite interested parties to participate in this exciting opportunity to support the growth and sustainability of LittleTree Kinderhouse Ltd. Your investment or donation will not only have a positive impact on our business but will also contribute to the well-being of families in our community.
Please reach out to us at your earliest convenience to discuss the terms and conditions of the proposed loan or to explore how your donation can support our expansion efforts.
Thank you for considering our proposal and for your potential support in this important venture.
Warm regards, Littletree Kinderhouse Ltd.
Alexandra Hamilton
Introduction: Alexandra Hamilton, operating Littletree Kinderhouse since 2019, aims to expand the daycare center by renovating the walk-out basement to serve an additional 8 children. Seeking $300,000 for renovations to kick off in March 2024 and complete by June or July.
Management:
- Alexandra Hamilton, Owner/Operator, with a Diploma in Business Management
- Current staff: 1 full-time ECCE, 2 part-time; plans to hire 2 full-time upon expansion
- Cycles Construction as General Contractor, Studio 9 as Architect, raja-accounting.com managing finances
- Enrolled in RED program and receiving coaching support until August 31, 2024
- Enrolled with Columbia Basin Trust Basin Business Advisory Team
Product/Service:
- Provides childcare for infants/toddlers (0-3 years) in a nature-inspired environment
- High demand indicated by 77% of families in the region lacking care; consistent wait list
- Licensed for 1 staff per 4 children under 3; plans to maintain licensing for expansion
- Offers 2 meals a day and charges a daily food fee
- Operating Monday to Friday, 51 weeks a year from 8 am to 4 pm
Market Area:
- Based in Nelson serving families from Salmo and Castlegar, primarily professional working parents
- Majority transitioning children between 12-18 months until they turn 3
- Diverse income groups and backgrounds among clientele
Market Research:
- Nelson's population of 15,000 with growing career-oriented families
- High demand indicated by consistent wait list and daily inquiries
Competition:
- LittleTree's intimate, home-based setting attracts families seeking nurturing care
- Other childcare centers such as Silverking, School House, and Kootenay Kids offer different services and rates
Pricing:
- Pricing capped at $65 per day as per Affordable Childcare rates
- Tax-exempt operations; payments accepted via e-transfer
Location:
- Residential-converted childcare site; expanding to include basement space for additional capacity
- Detailed description of property and renovation plans available upon request
- Insured and compliant with licensing regulations
Marketing Plan:
- Relying on word-of-mouth marketing and community referrals
- Website established to enhance digital presence: theenchatedforestt.ca
Legal and Insurance:
- Structured as an incorporation; seeking commercial zoning post-renovation
- Comprehensive insurance coverage through Kootenay Insurance Services
Start-up Costs:
- Total funding requirement: $350,000
- Owner funds: $50,000; Loans/Financing: $300,000
Forecasting:
- Financial projections indicating break-even and profitability post-expansion
- Anticipated growth in revenue and business opportunities
Environmental/Community Impact:
- Expansion aims to meet the community's growing childcare needs
- Community needs assessment conducted through Columbia Basin Trust
Bookkeeping and Accounting:
- Raja Accounting oversees bookkeeping, tax filings, and financial advising
- Alexandra manages invoicing and payroll through Quickbooks
Conclusion: Enchanted Forest, opened in 2020, is poised for a phase two expansion to fulfill the community's childcare needs, becoming profitable with the addition of the second center. The comprehensive business plan outlines the strategic, financial, and operational aspects needed to support the successful expansion of Littletree Kinderhouse.
Financial Reports, More in depth business plan, Building plan all available upon request
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