On Jan 2, 2009, at 12:13 PM, Tom DeReggi wrote:

> What I'd like to see is a SBA Broadband Lease guarantee program,  
> that is easier to qualify for than traditional SBA guarantees, to  
> help open up lending to the WISP market. There is tons of money out  
> their, But its harder than said for most to prove themselves "credit  
> worthy".

I haven't seen access to money to be that much of a problem. I'm a  
relatively small operator (compared to Travis, for example), but I got  
a $285K SBA loan last year with no trouble at all. Took just a few  
weeks. The rates weren't bad at the time (8.25%), but they are lower  
now I think. Have you actually *tried* the regular SBA route? In our  
case it was authorized both for "pop" build out as well as inventory  
(and a small percentage could even be used for working capital if we  
wanted) and it sure didn't seem hard to qualify for.

Chuck


>
>
> I'm seeing high risk lenders being more open to 1 yr leases. But  
> lenders are still concerned about 3yr leases, when they realize 3  
> yrs is a long time, and plenty of time for a WISP to loose their  
> custoemrs to Comcast or FIOS.  Expecially when grant programs are  
> talked about that might subsidize Fiber Optic deployment growth.
>
> Tom DeReggi
> RapidDSL & Wireless, Inc
> IntAirNet- Fixed Wireless Broadband
>
>
>  ----- Original Message -----
>  From: Travis Johnson
>  To: WISPA General List
>  Sent: Thursday, January 01, 2009 11:47 PM
>  Subject: Re: [WISPA] Congress may help smaller ISPs grow
>
>
>  We have been charging the same for internet service for almost 5  
> years.... and just two days ago, we got double the new sign-ups on a  
> single day of what we can do for installs. Business is booming in  
> our area and our industry. Just looking at our 2008 financials, our  
> gross revenues are up 15.2% and our Net Profit is up 10.3%.
>
>  And I'll take the bet on being able to lease or finance equipment  
> in 6 months. How much shall we throw on the table? I have lease  
> companies calling me daily wanting to give me money... seriously...  
> I get 3-4 calls PER WEEK from all different leasing companies. They  
> all have money and want "credit worthy" companies to use it, because  
> that's how they make money.
>
>  So again, how much shall we bet on this? :)
>
>  Travis
>  Microserv
>
>  [email protected] wrote:
> ++++++++++++++++++++++++++++++++
> <insert witty tagline here>
>
> ----- Original Message -----
> From: "Travis Johnson" <[email protected]>
> To: "WISPA General List" <[email protected]>
> Sent: Thursday, January 01, 2009 7:24 PM
> Subject: Re: [WISPA] Congress may help smaller ISPs grow
>
>
>  You can not grow in large scales without financing... and I don't
> understand why people are against it. Our last equipment lease was  
> under
> 10% interest, no personal guarantees, no money up front. We were  
> able to
> purchase a large quantity of CPE units (thus saving us about 20% off  
> the
> single unit price). So, in the end, it actually saves money and the  
> "cost"
> of installing a new customer is $0 to you, because the $99  
> installation
> fee pays for the time, materials, etc.
>
> Example:
> single CPE = $190 each
> 460 CPE = $155 each
>
> 36 month lease on $71,300 = $2,300 per month x 36 months = $82,800 /  
> 460
> units = $180 each
>
> But in 36 months, you might be able to charge no more than 10  
> dollars /
> month per customer.   That's the magic of deflation - which is already
> occurring.
>
>  And it costs you $5 per month for 36 months for the equipment on that
> customer... that's pretty cheap even if you only charge $29 per  
> month. :)
>
> Whatever happens in the future...  It will NOT be the same as today.
> Inflation or deflation will happen.   No way around it.   Congress has
> already taken on more debt than can be serviced.    Neither scenario  
> will
> let you survive being in debt.
>
> Besides, don't expect to be able to lease equipment at any rate or  
> terms
> within 6 months.
>
>
>  Travis
> Microserv
>
>
>
>
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--------------
Chuck Bartosch
Clarity Connect, Inc.
200 Pleasant Grove Road
Ithaca, NY 14850
(607) 257-8268

If all is not lost, where is it?





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