DAVID G HERNANDEZ TRUCKING INC 2703549 | Government Grant Application

DAVID G HERNANDEZ TRUCKING INC | Application Preview

1. PROJECT COVER INFORMATION

Project Title: Fleet Expansion and Workforce Growth for David G. Hernandez Trucking, Inc.

Applicant Organization: David G. Hernandez Trucking, Inc.

Amount Requested: $50,000

2. EXECUTIVE SUMMARY / ABSTRACT

Problem / Need: Small and growing trucking firms face a common barrier to scaling: limited working capital and limited access to additional revenue-producing equipment. In trucking, capacity is directly tied to equipment, and without the ability to add trucks and core yard/operations equipment, a company can struggle to compete for contracts, meet schedule demands, and expand into new service areas. This is especially challenging when bidding against larger carriers with significantly more trucks, which can reduce per-unit costs and offer customers more availability. David G. Hernandez Trucking, Inc. is seeking grant support to stabilize core operating expenses and invest in an additional semi-truck and essential equipment so the company can increase capacity, improve service reliability, and create additional jobs.

Target Population / Sector: The project benefits the freight and logistics sector and directly supports working individuals seeking stable employment, including drivers and yard/operations support. The primary beneficiaries are (1) potential new hires who gain employment opportunities and (2) customers who benefit from more dependable, on-time service and responsive account management.

Proposed Solution: Use the requested funding to cover key operating overhead (utilities and yard rent) while acquiring an additional semi-truck and necessary equipment. This combination strengthens cash flow, increases hauling capacity, and enables the company to pursue new revenue targets, expand geographically, and improve customer service through reliable dispatch and on-time performance.

Key Activities: - Stabilize essential operating costs (utilities and yard rent) to maintain uninterrupted operations and readiness for growth. - Purchase an additional semi-truck to increase capacity and improve scheduling flexibility for customers. - Purchase supporting equipment needed for safe, efficient operations and yard productivity.

Expected Outcomes: - Increased fleet capacity that supports higher revenue potential, improved job competitiveness, and the ability to accept additional loads or contracts. - Creation of at least one additional job opportunity tied to added equipment capacity, with potential for additional yard support needs as volume increases.

Funding Request & Duration: $50,000 to support near-term operating stability and equipment acquisition as the business scales.

3. STATEMENT OF NEED / PROBLEM STATEMENT

Problem Description: The trucking industry is highly capacity-driven and competitive. When a company has a limited number of trucks, it can be forced to decline loads, miss out on contract opportunities, or be less competitive in bids that require redundancy and flexible scheduling. Larger competitors can submit stronger bids due to higher fleet availability and economies of scale, making it difficult for smaller firms to win or retain accounts. For a growing business like David G. Hernandez Trucking, Inc., the immediate need is to secure the financial breathing room to maintain ongoing operating expenses while also making the single most important growth investment: another revenue-generating semi-truck and associated equipment.

Who Is Affected: The company, its current and prospective employees (drivers and yard staff), and customers that depend on on-time transportation services are affected. The impact is most direct on working individuals seeking stable jobs and on shippers/clients who value reliable delivery performance and responsive communication.

Current Gaps: The primary gap is limited fleet size compared to competitors, which constrains bidding strength and service capacity. A secondary gap is working capital pressure caused by fixed overhead costs (utilities and yard rent) that must be covered while the business invests in growth. Without support, expansion can be delayed, and the company can remain at a competitive disadvantage despite strong service quality.

Consequences if Unaddressed: If the business cannot add capacity, it risks slower growth, fewer available job opportunities, reduced ability to compete for larger or more time-sensitive contracts, and missed chances to expand into new geographic markets. Over time, this can limit the company to smaller jobs and reduce its ability to increase community impact through employment.

4. PROJECT GOALS & OBJECTIVES

Overall Goal: Increase David G. Hernandez Trucking, Inc. hauling capacity and operational resilience to support business growth and create additional job opportunities while maintaining high service standards centered on on-time performance and strong customer relationships.

Specific Objectives (SMART): Objective 1: Within the project period, acquire one additional semi-truck to increase available hauling capacity and support acceptance of additional work.

Objective 2: During the project period, use grant funds to maintain continuity of operations by covering essential fixed costs (utilities and yard rent), reducing disruption risk during expansion.

Objective 3: Following the fleet and equipment expansion, increase competitiveness for bids by improving availability and responsiveness, supporting new revenue goals and expansion into new geographic targets while maintaining on-time service expectations.

5. PROJECT DESCRIPTION / PROGRAM NARRATIVE

Project Overview: This project is a targeted growth initiative focused on expanding core fleet capacity and strengthening day-to-day operating stability. The requested grant allows the company to protect essential overhead needs while making a strategic equipment purchase that directly increases revenue-generating capability. The project is designed to translate investment into measurable growth: more capacity, improved customer service responsiveness, and job creation tied to the addition of another truck.

Approach / Strategy: In trucking, adding a semi-truck is one of the most direct paths to scaling because it expands the number of loads that can be handled and reduces scheduling bottlenecks. Pairing that purchase with funds to stabilize utilities and yard rent supports operational continuity, ensuring the business remains reliable while integrating new capacity. The company will continue differentiating itself through one-on-one account attention, careful listening to customer needs, and consistent on-time performance.

Key Activities: - Maintain stable operations by paying utilities and yard rent to keep the business fully functional and ready to serve customers without interruptions. - Procure a semi-truck suited to the company’s service needs, improving flexibility, bid competitiveness, and the ability to take on additional work. - Procure necessary equipment to support safe, efficient yard and operational performance as volume increases.

Alignment with Grant Priorities: The project aligns strongly with common public-sector grant priorities such as small business growth, job creation, local economic development, and strengthening critical logistics capacity. The funding supports a practical, immediate use case: maintaining operations and expanding revenue-producing assets to grow employment.

6. METHODS / WORK PLAN

Implementation Steps:

Phase 1 - Setup The business will finalize equipment needs, identify the best-value semi-truck option, and confirm any operational requirements needed to integrate the vehicle and equipment. In parallel, the company will allocate funds to ensure uninterrupted payment of utilities and yard rent to stabilize operations throughout the expansion.

Phase 2 - Execution The company will purchase the semi-truck and acquire required equipment. Operational processes will be updated as needed to schedule work efficiently, preserve on-time performance, and maintain strong communication with customers.

Phase 3 - Delivery With expanded capacity in place, the company will pursue additional loads and bidding opportunities, set updated revenue goals, and expand into new geographic targets while maintaining its customer-service-first approach.

7. ORGANIZATIONAL CAPACITY

Organization Mission: David G. Hernandez Trucking, Inc. exists to grow a dependable trucking operation that delivers excellent service and creates meaningful job opportunities for individuals who want to work, whether behind the wheel or supporting operations in the yard.

Systems & Infrastructure: The company maintains a yard for operations and has established customer service practices centered on responsiveness and punctuality. The grant-funded investments directly support and strengthen this existing operating structure by adding capacity and ensuring continuity of essential overhead needs.

12. BUDGET SUMMARY

Total Request: $50,000

Planned Use of Funds: Funds will be used to (1) pay essential operating expenses including utilities and yard rent, (2) purchase a semi-truck to increase revenue-generating capacity, and (3) purchase necessary equipment to support operations and growth.

13. BUDGET JUSTIFICATION (NARRATIVE)

Utilities and Yard Rent: These costs are necessary to keep operations stable and uninterrupted. Maintaining a functional yard and reliable utilities supports daily readiness, safe storage and staging, and the ability to respond quickly to customer needs while the business expands.

Semi-Truck Purchase: A semi-truck is a direct capacity multiplier. Adding a truck increases the number of loads the company can service, improves schedule flexibility, strengthens bidding competitiveness, and supports the company’s stated mission to grow and create additional jobs tied to increased hauling capacity.

Equipment Purchase: Supporting equipment is needed to operate efficiently and safely and to handle increased workload. This investment reduces operational friction, improves productivity, and supports consistent service delivery as volume grows.

14. SUSTAINABILITY PLAN

Post-Grant Funding Strategy: After the grant-funded expansion, ongoing operations are intended to be sustained through increased revenue generated by the additional semi-truck and improved ability to win bids and accept more work. As capacity grows, the company can set higher revenue goals, expand into new geographic targets, and strengthen customer retention through consistent service performance.

Revenue or Cost Recovery: The additional truck is expected to generate recurring revenue through contracted hauling and/or spot-market loads, enabling the business to cover operating costs and continue expanding equipment over time.

15. RISK MANAGEMENT

Key Risks: A primary risk is competitive pressure from significantly larger carriers with more trucks, which can make bidding challenging. Additional risks commonly associated with trucking growth include equipment downtime, maintenance needs, fluctuating fuel and operating costs, and the operational complexity of scaling service without losing reliability.

Mitigation Strategies: The company’s service model reduces competitive risk by focusing on strengths that large competitors often struggle to match at scale: one-on-one account attention, responsiveness, and consistently being on time. Investing in adequate equipment and maintaining stable yard operations also supports reliability. As capacity increases, careful scheduling, preventative maintenance planning, and a disciplined focus on customer service will help protect performance and support sustainable growth and job creation.

• General Information

  Business Registration Number: 2703549

  Location: Lodi, California, United States

  Length of Operation: 11plus

  Number of Employees: 1-10 Employees

  Annual Gross Income: $250k to $500k

  Annual Gross Expense: $250k to $500k

  Open to Loans: NO

• Funding Usage

  If granted the opportunity to be approved, the $50,000 will be used to: - pay utilities, rent (yard), etc. - purchase of semi-truck. - purchase of equipment. Our biggest mission in David G. Hernandez Trucking, Inc. is to grow. Continue to help others in need of a job.

• Business Plan

  David G. Hernandez Trucking Inc. mission is to continue to grow. With this grant we will be able to purchase another semi-truck, we will be able to help another individual have a job. We will be able to set new revenue goals, new geographical target, and enhancing customer service. David G. Hernandez Trucking, Inc. wants to continue to grow. We look forward to seeing our progress and how many people we can impact with getting behind the wheel or simply working in the yard. The more semi-trucks we have the more jobs we can create for others.

• Self Identified Competition

  Reeve Trucking: Has over 150 semi-trucks and same equipment as I do. Which makes it harder to bid against them for jobs. Mike O'Brien: has over 25 semi-trucks and same equipment as I do. Which also makes it harder to bid against them. Mega Trucking: Also has over 15 semi-trucks and same equipment as I do. Makes bidding for jobs harder. What makes us stand out more than Reeve, Mike O'Brien, and Mega is we strive to: - Have more of a one on one with accounts. Truly listen to what our customer is in need of and execute a plan to deliver exceptional results. - Being on time wherever we go. That is crucial. This alone has made a name for David G. Hernandez Trucking, Inc. and we take great pride in doing so.

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