FUNDING
&
FINANCING
USE OF FUNDS
Some sources of funds have no limitation on use. Others sources limit use of funds to wage subsidies, capital expenditures, research & development, general expenses, operating expenses, debt service, etc., or combinations of these.
CATEGORIES
Although there are innumerable delivery systems, there are only two principal categories of funding and financing: I) money and other benefits that must be repaid; and II) money and other benefits that don't require repayment.
Governance delivers both categories (as needed) to its clients.
BENEFITS TO BE REPAID
Benefits requiring repayment include:
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Loans
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Credit Facilities
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Triple Tax Exempt Bonds
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Receivables and Future Revenue Financing
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Building to Spec with Lease Satisfaction Before Being TItled Over to Beneficiary
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Equipment Structured with a Lease
BENEFITS NOT TO BE REPAID
Benefits requiring repayment include:
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Grants (Cash, Property, Etc.)
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Forgivable Loans
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Some Bond Proceeds
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Wage Subsidies
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Utility Subsidies
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Retention Subsidies
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Downsizing Mitigation Subsidies
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Fungible Tax Credits
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Non-fungible Tax Credits
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Building to Spec Titled Upon Performance
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Equipment Titled Upon Performance
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Tax Revenue Sharing
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Receivables Factoring
RATIONALE
The most significant benefits that can be captured for a client are discretionary. In some instances, there is no program, as such, just the legal authority granted in statute. Sometimes, the authority is limited and prescribes what can be done and for what type of beneficiary. In other instances, there is no limit to the amount that can be granted, the purpose, the form of delivery of the benefit, etc. In fact, in one state, one of the enabling statutes - after pages of detailing what can or can't be done and other limitations - ends with (to paraphrase) "and regardless of the aforesaid is empowered to do anything that may be necessary for economic development..."
In short, the limitation is a combination of imagination and budget as long as there is justification - not rationalization.
We draw the distinction because we don't rationalize why the gifting party should gift. We provide significant econometric, political, demographic and societal analyses that substantiate the need. These are the Raison D'état and Rasion D'être. The documentation is never meager, usually exceeding 100 pages. Sample Work Product is available to share with prospective clients so that you can see that
Raison D'état and Rasion D'être are not mere phrases, and that our approach is genuinely unique and without equal.
The Raison D'état and Rasion D'être validate that by providing the benefit, the gifter is receiving in return more than it is gifting. Our approach truly aligns all parties on one side of the table - to achieve benefits for each party that would be impossible without the other.
PUBLIC SECTOR
There are literally billions of dollars in unobligated and unliquidated federal funds available immediately. All of these are discretionary. None are by-right. None of these require "robbing Peter to pay Paul" - none were budgeted and anticipated for use by any public or private entity.
Interested?
PRIVATE SECTOR
At the risk of repeating ourselves: There are literally billions of dollars in unobligated and unliquidated federal funds available immediately. All of these are discretionary. None are by-right. None of these require "robbing Peter to pay Paul" - none were budgeted and anticipated for use by any public or private entity.
Interested?
VALUE IN A COVID WORLD
