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  • Need $38,000 any suggestions?

    We received a grant for an engine. We have our match but with increasing costs and other options spec’d we have a balance of $38,000 to come up with. I’ve worked with a private corporation for three months and felt we had a corporate donation for the balance. My feeling went wrong. They advised us yesterday they could not help. The engine will be completed in 4-6 weeks and I need to find money. I’m calling our state and national politicians for assistance and I’ve checked with lending companies. The lending companies are happy to loan the money at a term of up to 7 years. With our budget, we need to extend the loan to 10-15 years with the goal of paying it off early. I’m also checking into USDA rural development loans but I think my time frame is too short to obtain one. Does anyone have other suggestions or know a company that will do an increased loan term? Thanks for any help you can give.
    Lesson learned: “Always have a backup plan”

  • #2
    Was this a AFG grant?

    Kurt, Brian or Alana could tell you better, but I would think you could file an amendment to your grant with justification.

    I would call your local DHS rep. and ask them also.

    If all else fails I believe your local bank can hook you up with a loan and the rate is better the USDA...some program whereby they have to give loans to local gov at a better rate; either NEIOWA or GREENACRES mentioned in a post somewhere.

    Comment


    • #3
      Ladder5B:

      Here are a couple of suggestions:

      1) Try a local lender, explain your situation and since they are local they may be more apt to allowing extended terms or at least will give you financing for 5-10 years with the option of re-financing at a variable rate.

      2) Call Baystone Financial in Manhattan, KS. They specialize in providing financing for the fire-rescue market and also may be able to give you some financing options. Typically, they will only give you a fixed rate for up to 10 years before you have to re-finance, and at that time you can get an additional 5 years.

      They also have a small loan program, if still available, that you can pay 10% down and defer payment for up to 12 months. At that time you then will have payments for up to five years.

      Baystone's # is: 800-752-3562, ask for Blake Kaus or Ryan Sloan.

      3) Call Government Capital. They also have an arm that specializes in providing financing for the fire-rescue market and may be able to help. I am not as familiar with them, but I believe they are located in Louisiana. Their # is 800-883-1199.

      Good luck and I hope this helps!

      rfd599
      www.IllinoisFireStore.com

      Comment


      • #4
        Originally posted by AFD2181
        Was this a AFG grant?

        Kurt, Brian or Alana could tell you better, but I would think you could file an amendment to your grant with justification.
        Problem is, amendments just amend items in your grant, but they won't amend the amount you were awarded.

        Comment


        • #5
          Time to knock something off the truck. Change from LED's to rotaters. Drop
          some things...

          If it is 4-6 weeks until delivery, you have time to act.

          Its not a popular thing to do, but it will work. How much did you
          get awarded for the truck in the first place?

          Comment


          • #6
            It was an AFG grant for $225,000 federal share. As far as cutting items I may be able to save a few thousand but there is not a lot of bells and whistles. It's my understanding that a majority of the items have arrived at the manufacturer and waiting for installation. Thank you all for your input.

            Comment


            • #7
              There are numerous options for funding via a loan, even a municipal
              lease, $1.00 buyout at the end of the lease term. The only issue would
              be a legal one, they may want you to use the truck as colateral, and I
              am not sure if FEMA would like that.


              Your local banks are your best source, if you need some leasing contacts
              let me know.

              Comment


              • #8
                Originally posted by LVFD301
                There are numerous options for funding via a loan, even a municipal
                lease, $1.00 buyout at the end of the lease term. The only issue would
                be a legal one, they may want you to use the truck as colateral, and I
                am not sure if FEMA would like that.


                Your local banks are your best source, if you need some leasing contacts
                let me know.

                No leases are "verboten" to AFG. Best bet is try for the extended term loan at USDA, or use a commerical bank with their " vital to community safety" clauses. Earl, what is that exact term they use for that program it is late on Friday and I can't think of it.

                If all else fails, take a variable rate and start fundraising like hell! ALso I would get your plight published in the local press. If your citizens don;t know something is broke, no body will even bother to step up to help out. You might also tyr looking at CDBG money if your city has any, their funds can be used on other grant programs. If you want to discuss further give me a shout at 800-992-0272 EXt 1 on Monday.
                Kurt Bradley
                Fire/EMS/EMA Grant Consultant
                " Never Trade Skill for Luck"

                Comment


                • #9
                  The word options in your original post will probably key some people off thinking you gold plated something, but having been involved in many a truck spec in the past 2 years most of that $38K is steel pricing increases.

                  The best bet is to work the local media all of the way up to the state level. Apparatus are part of a larger mutual aid picture regardless of where you are, so it doesn't matter how small, where they are parked or anything else, the truck will be a part of the state homeland security plan. It's probably a really long shot, but you're going to have to work all angles in this short time period. If you need a hand with the local government let me know, I've had to take on city hall for other people before over less money than that to buy things at 95% off. It's all about the delivery.
                  Brian P. Vickers
                  www.vickersconsultingservices.com
                  Emergency Services Consulting
                  Westlake VFD - Houston, TX
                  Proud Member IACOJ - Redneck Division

                  Comment


                  • #10
                    Originally posted by ktb9780
                    No leases are "verboten" to AFG. Best bet is try for the extended term loan at USDA, or use a commerical bank with their " vital to community safety" clauses. Earl, what is that exact term they use for that program it is late on Friday and I can't think of it.
                    Thanks for the vote of confidence, but it's even later on Friday and i've just gotten home from four hours in 2-layer nomex on a 90 degree/90% humidity night at the speedway. Man, it's so nice to have a valid excuse!!

                    My first call would be to my Congressman's grant liason. In our district, she is an active part of all of my grant applications and we couldn't get along without her. (Thanks AMY EIZ***** for your efforts!!) Next call would be to my State Rep. Besides alerting them, i'd ask if it's okay for me to refer media to them for additional input.

                    Got to to get to sleeep. Have a full day of first responder practicals tomorrow.
                    earl

                    Comment


                    • #11
                      If you don't need the vehicle / equipment you are replacing, you can look into getting a trade-in credit for it. I know when we priced getting new Holmatro tools, we were told we could trade in our old Hurst tools to lower the price, and it was a few THOUSAND dollars savings.

                      Comment


                      • #12
                        Thanks for all of your help. I may be contacting some of you once I contact our local banks and the USDA.

                        Thanks again!

                        Comment


                        • #13
                          Your welcome!
                          Kurt Bradley
                          Fire/EMS/EMA Grant Consultant
                          " Never Trade Skill for Luck"

                          Comment


                          • #14
                            As several people may already have touched on, I would go straight to a local TV station, and bring them into the station. I would have your Chief contact them, and have a meeting (perhaps after contacting or attempting to contact your congress/senator). Then explain how you are waiting to take possession of a $225,000 apparatus that is only costing your taxpayers 5% (if that is your demographics) and that due to the cost overruns totally out of your control, you will be unable to do so. I would imagine you are replacing a very aged piece of equipment, if you were awarded the grant (most I have had the privilege of writing that were funded have been very old and unsafe)...show that on TV...talk about how unsafe it is, etc etc.

                            GREAT news story, donations or corporate steps up...mention you thought you had a 'white knight' in the form of a local business want to partner with you to assist in absorbing the additional amount, but at the last minute bailed...all the makings of a brilliant 'Live at 6' exclusive.

                            Then, you write up an editorial about how this appartus would have been such a blessing to the citizens and volunteers (a real tear-jerker) and you fax it to every newspaper in a 100 mile radius+. And you include your cell phone as contact info to field calls for comments, etc.

                            Truly, this has the makings of a newsworthy piece that your citizens NEED to know about. Not about the crime, the disasters, etc. But, for once the FEDERAL GOVERNMENT is poised to GIVE your department a $225,000 fire truck and all you need is an additional small $38,000 due to manufacturer's overruns? It's a no brainer....there should be no loans...seriously. Your should be able to get enough businesses to step up when shamed by the TV and newspaper to do the right thing...

                            Just my opinion, YMMV. Good Luck. If you need help writing the newspaper releases, I write all of ours for my department, let me know, I'll be glad to do it.
                            Alana Tomlin Denton
                            Freelance Grant Writer/Consultant

                            Comment


                            • #15
                              And get a direct mailing out to EVERY resident of your fire district with the same story. Include a response envelope. For your potential large donors, include a stamped response envelope. You want to make it easy, if you dont' get a check back within a few days very low chance you will. And remail as required. If you have not done a direct mailing before (our #1 fundraising method) talk to your savy local elected official (state legislature types) and get their help. They are the experts in raising $ or they won't be going back to the legislature. "What works in this area to raise $?" is the #1 question and #2 is "Will you help me". Then generate a list for the "other" party so you cover those who swing the alternate direction of your politician.

                              If you need a loan, go to local banks, not necessarily the mom/pop bank but talk to them also. You want an "Essential Community Service Loan". Every bank in the US has to make X% loans into the local community in order to meet fed/state standards and keep the bank regulators off their backs. A loan for a fire truck is an ideal place for their $ as the bank "knows" they are going to get repaid. You will need a simple letter from your city attorney describing the purpose of the loan and that it is an "Essential Community Service Loan" (as is most anything a fire dept NEEDS). Then get to negotiating term and rates to meet your anticipated cash flow. Your rate should be around 2pts below consumer rates as they pay no tax on the proceeds. The floor will be their cost of funds. As this varies you can anticipate the loan rate to change at some point/points depending on the term (same as a house loan, do you want the 3yr AMR, 15yr fixed, 30yr fixed). If you chose the fixed rate likely will be hirer as Mr Banker does not know where rates will be going. If you chose the longer term, the rate again may he higher as Mr Banker does not know where rates will be going. Get your negotiating hat on.
                              Last edited by neiowa; 08-02-2006, 03:34 PM.

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