Uncertainty in financial markets creates challenges in obtaining project financing, but the right projects can get the money they need through applications for federal assistance and stimulus bills.
Because of uncertainty in financial markets, it is a challenging time to obtain project financing. However, there is money available for the right projects.
Traditional debt financing is not the only option. Projects may be eligible for federal assistance in the form of tax incentives, grants or loan guarantees that back low-interest financing. Partial project funding may be available through agencies such as the Department of Energy. Funding may also be available through public/private partnerships, such as those in which a contractor provides partial financing, or from special-purpose sponsors, including pension funds, insurance companies and major equipment providers.
The new stimulus bill may also provide opportunities. In seeking government grants or funding from other nontraditional sources, it is important to consider both financing cost and the strings attached, such as restrictions on use of funds or additional reporting requirements. And, as with traditional sources, good master planning, project planning and proper documentation of the project’s feasibility, costs, schedules and projected revenue flows are critical for financing success.
Burns & McDonnell assists clients who seek financing by evaluating options, preparing applications for funding components and completing engineers’ reports to support financing packages.
Contact Ted Kelly, 816-822-3208.