Jonesville Candy Company
123 Candycane Lane, Ozark, Aekansas 20034;

Charity Bank
Attention: Lola Banks
435 Hopeful Lane
Ozark, Arkansas 20034

Dear Mrs. Banks:

I am writing to request a Line of Credit for Jonesville Candy Company. We need the loan to help with the current and future growth of the company. Jonesville Candy Company has been in business for three generations selling a variety of candy products. We have recently been successful growing our private label products. This particular product allows large customers to choose a product and have it packaged in specified packaging and shipped as directed to their customers or to customer for their sale. We would like to expand this opportunity for the company.

I have evaluated our financial statements and prepared forecasts for the next five years which you will find enclosed. There are a few areas I would like to point out while you are reviewing the financial statements and forecasts. First, you will notice that we have significant assets with minimal liabilities. I have estimated an increase in sales of approximately three percent and an increase in operating expenses of approximately twenty-five percent while maintaining a cash balance of $112,500 per year. We also plan to start paying a dividend, which has never been done before. The dividends are estimated in the forecasts as $75,000 in the 2005 and $25,000 in the following four years.

You will notice that our assets are significantly larger than our liabilities

I have included a special marketing expense line item which is the expenses used to cover our efforts to increase the marketing of our private label products. The total expenditure for this over the next five years will be $140,900. You will find that the largest portion of this expense will be spent in the first year. In that same year our forecast reports a loss