Federal Funding as a flailing resource in the Marketplace

By
Commercial Real Estate Agent with Northland Real Estate

Working through various buyers and concepts often initiates the need for various sources of government funding, whether through the Federal, State, County or City.

With the current Federal Monies Crisis, many of those Federal sources have either been depleted, require extensive additional paperwork, have many more applicants than historically, all leading to lapses in continued or new funding.  This is slowly impacting the State and local entities who likewise fund in part through the Federal sources.  With this concern are transactions hanging in limbo where funding which once was predictable, that is now a strong contingency to threaten progress.

Short and Long term prognosis would seem to be political in nature whether it will be resolved or not in a reasonable time frame, more importantly, a time frame that will full-fill the parameters of an ongoing transaction.  Resolution of this has been successfully bridged in a few cases with arbitrage or private funding either for capital expenses and ongoing operating costs that may initially in start-ups be deficits.

Can this be the long term solution?  Apparently the funds that exist in the private sector are the same source of funds that in part end up in the Federal sector, a function of our tax dollars at work or not at work as the case may be.  In some cases the private sector funds are easier to access on a one on one basis although it also can be more difficult in that the private sectors are also flooded with unsolicited requests.

The question is, whether this is an answer, a solution or an ongoing situation that we must all deal with to promote transactions using alternative methodology.

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