Two brothers had just completed their first year in business. Most of their initial funding was provided by the Federal Business Development Bank (FBDB). First year sales were far below expectations due to startup problems. The brothers have applied to FBDB for additional funds for the upcoming season. The FBDB assistant branch manager must decide whether to provide the additional funds, call the loan or develop other alternatives. The case was designed to be used towards the end of the working capital segment. Information on FBDB's approach to loan appraisal gives the student an opportunity to synthesize his/her own methodology.
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