Look into USDA matching grants for broadband. Can't remember if it's 20 or 30% up front, but they provide the rest.
Avoid RUS, too many strings. On Aug 11, 2016 12:28 PM, "Sterling Jacobson" <sterl...@avative.net> wrote: > Ah, ok. > > Fiber is way more capital intensive than the WISP I had, and requires > massive funding. > > So my traditional sources and avenues for borrowing don't even come close > to matching up with the demand and cost of construction. > > Too bad banks don't see fiber/conduit build as collateral. > > That is why I am investigating special assessment. > > -----Original Message----- > From: Af [mailto:af-boun...@afmug.com] On Behalf Of Travis Johnson > Sent: Thursday, August 11, 2016 11:17 AM > To: af@afmug.com > Subject: Re: [AFMUG] Special Assessment > > Just saying that government money is never what it's cracked up to be. > I've never taken a single dime (loan, grant, tax, assessment, etc) and > probably never will, with any of my companies. It's just not worth all the > extra work and headaches. If you have a sound business plan and operation, > just borrow the money and get it done. > > There are all kinds of ways to be creative when it comes to funding. > Leasing equipment, 60 day term credit cards, lines of credit (secured with > assets of the business), or even home equity loans (4.25% right now, with > interest only payments), etc. > > Travis > > > On 8/11/2016 10:52 AM, Sterling Jacobson wrote: > > Definitely. > > > > Travis, are you just generally saying the money comes with strings > attached, or do you have actual specific experience with Special Assessment > in this manner? > > > > -----Original Message----- > > From: Af [mailto:af-boun...@afmug.com] On Behalf Of Chuck McCown > > Sent: Thursday, August 11, 2016 10:51 AM > > To: af@afmug.com > > Subject: Re: [AFMUG] Special Assessment > > > > Yeah, good people find themselves in legal trouble all the time when > getting involved with guvmnt money. Less than zero tolerance for even the > appearance of evil. > > > > -----Original Message----- > > From: Travis Johnson > > Sent: Thursday, August 11, 2016 10:48 AM > > To: af@afmug.com > > Subject: Re: [AFMUG] Special Assessment > > > > You better build in an additional 100% for overhead costs... I would > imagine you would have to start doing audited tax returns and financials > every year. You will also have to have someone tracking every single > expense and what it is attached to, etc. > > > > Then you will have all the overhead and administrative costs for > managing the paperwork and government related money. > > > > Travis > > > > On 8/11/2016 10:21 AM, Sterling Jacobson wrote: > >> Has anyone here ever done a special assessment funded project? > >> > >> I have a couple of examples in Utah/Idaho, but am looking for > >> specific examples and advice from my provider friends here. > >> > >> I'm not sure if it's called something else in other states so this is > >> what I have been told: > >> > >> You talk to a land developer, get them to partner up with your > >> company and the city. > >> They allow a tax or assessment item to be attached to the developed > >> lot/unit for around 20 years. > >> Sometime like $150 a year, so $3000 total over the period. > >> The city council agrees and creates a bond type item for that and > >> your company gets a check for the total amount times number of > properties. > >> Then you work with the developer to install all of the necessary > >> stuff for internet, which is fiber in my case. > >> > >> And the new property owner has your service available from the get > >> go, maybe with free install, and a $150 a year discount on the > >> service for > >> 20 years. > >> > >> Anyone done anything like this? > >> > >> > > > >
