Yes... and to go a step further, if the business doesn't qualify for a bank loan (or leasing, or whatever) then they probably shouldn't be in business in the first place. If you can't show a profit and make a business work, getting a loan isn't going to fix that problem.
Travis Microserv Brad Belton wrote: > That's part of the problem I have with these government handout programs. > If you can't qualify for a loan through conventional means then why should > the taxpayer be put on the hook? > > Brad > > -----Original Message----- > From: [email protected] [mailto:[email protected]] On > Behalf Of Tom DeReggi > Sent: Thursday, January 07, 2010 9:47 PM > To: WISPA General List > Subject: Re: [WISPA] StarOS Operator gets Stimulus Funding > > Travis, > > But, you and I are grading different topics.. > > I agree with your point, its questionable whether it was worth accepting the > > money on those terms. > My point was that NTIA/RUS was not discriminating against small providers > and giving them equal opportunity to consider that decission. Thats a good > thing. > > I personally would rather get a private loan without the strings, If I can. > But thats the whole point of the program isn't it?. If you can get a loan, > you have no business applying for the BTOP/BIP program, because part of the > requirement is you have to show NEED. IF a bank will lend for the project, > for what ever reason, you really dont have "NEED" do you? Those that truly > have need, may not qualify for private lending for the project, and may be > more willing to make compromises to get the money. > > With that said, I have no knowledge of what Aloha's financial position or > justification was. > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > > ----- Original Message ----- > From: "Travis Johnson" <[email protected]> > To: "WISPA General List" <[email protected]> > Sent: Thursday, January 07, 2010 3:00 PM > Subject: Re: [WISPA] StarOS Operator gets Stimulus Funding > > > >> I guess we'll wait and see if they think it was worth it 2-3 years from >> now. If not a leasing company, any bank would have probably loaned >> $106,000 toward this company if they put EVERYTHING on the line like >> they did for this loan. Yes, they get a better interest rate, but so >> what? If 3% vs. 6% is a deal breaker, you should probably be finding >> another business to be in. >> >> Travis >> Microserv >> >> >> Tom DeReggi wrote: >> >>> I disagree. Maybe I am not impressed with the award benefit, but I am >>> very >>> impressed with the borrower and the Lendor. >>> What that transaction tells us is.... >>> >>> 1- Prior to First NOFA release many experts predicted awards smaller than >>> > > >>> 5 >>> mil would not likely be considered. >>> A: Not True. >>> >>> 2- Small providers dont have a chance to win an award in a big palyers >>> game. >>> A: Not True >>> >>> 3- Awards would be wasteful spending and hand outs to those that dont >>> need >>> it. >>> A: Not True >>> >>> 4- We aren't asking for unjust hand-outs, All we really need is a little >>> help!!! >>> A: A small WISP got some help. >>> >>> I'm VERY impressed that NTIA/RUS extended thier valuable time to consider >>> worthy small applications. >>> >>> The other thing is not all affordable equipment is possible to easilly >>> finance through lease companies. >>> For example, Getting a name brand Canopy on a 1yr-3yr lease aint hard, >>> but >>> its not easy finding leasing companies that will touch OEM style gear >>> (MT, >>> STAROS, type), or all equipment needed, and gets harder finding 5 yr and >>> over. I can give an example of a "battery" for backup system, Who in >>> their >>> right mind would finance a product that dies over time and has no resale >>> value? A RUS grant can cover ALL expenses relating to infrastructure >>> critical for its operation. >>> >>> It also should be noted that because Aloha got a "loan" instead of grant >>> he's allowed to use revenues from subscriber to go towards some operating >>> costs to support the network also. >>> >>> >>> Tom DeReggi >>> RapidDSL & Wireless, Inc >>> IntAirNet- Fixed Wireless Broadband >>> >>> >>> ----- Original Message ----- >>> From: "Travis Johnson" <[email protected]> >>> To: "WISPA General List" <[email protected]> >>> Sent: Thursday, January 07, 2010 9:35 AM >>> Subject: Re: [WISPA] StarOS Operator gets Stimulus Funding >>> >>> >>> >>> >>>> Hi, >>>> >>>> I have to say I'm not impressed... $106,000 loan could have been gotten >>>> with a leasing company, without all the government ties and >>>> restrictions. >>>> >>>> Travis >>>> Microserv >>>> >>>> >>>> Matt Larsen - Lists wrote: >>>> >>>> >>>>> Aloha Broadband, a WISP in Hawaii that runs 100% StarOS, was one of >>>>> the >>>>> first 18 companies to receive broadband stimulus money. Looks like >>>>> the >>>>> total scope of the project was also a lot more reasonable than some of >>>>> the other ones. >>>>> >>>>> >>>>> > http://www.google.com/hostednews/ap/article/ALeqM5jgqG0W8KNsbeVueTYPRDKYHqy8 > twD9CLQMJ02 > >>>>> Matt Larsen >>>>> vistabeam.com >>>>> >>>>> >>>>> >>>>> >>>>> > ---------------------------------------------------------------------------- > ---- > >>>>> WISPA Wants You! Join today! >>>>> http://signup.wispa.org/ >>>>> >>>>> > ---------------------------------------------------------------------------- > ---- > >>>>> WISPA Wireless List: [email protected] >>>>> >>>>> Subscribe/Unsubscribe: >>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>> >>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>> >>>>> >>>>> >>>>> > ---------------------------------------------------------------------------- > ---- > >>>> WISPA Wants You! 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