Robbietan has the right idea on the demand charge. They are asking you what you think the maximum kW the business will be using. A demand meter will take that maximum value and will store it until it is reset by a meter reader each month, and the customer will receive a demand charge each month in addition to total consumption (kW-hrs). However, the utility should be able to estimate what your maximum demand (kW) is going to be, simply by looking at a similar business of a similar size and how many kW they are consuming. If your NEC load calculations comes up with 38 kVA of connected load, I would think your max kW would be around 20 kW (without knowing any other information based on experience).
What kind of business?