USDA Federal Financing
USDA Federal Financing
(OP)
This may be the wrong forum for this question, but I could not find another suitable forum. Besides, structural folks have as well rounded project experience as any displine.
Does anyone have experience with USDA financing as it relates to the project and construction management of a project? Any comments would be appreciated.
Case: Local government construction of a $20 million courthouse. Possible USDA financing is being suggested due to limited, or no up front financing costs, and the ability to stretch repayment of loan over 40 years vs. 20 years for a conventional bond financing.
I am familiar with the environmental and historical property aspects involved with the USDA process.
Questions: Will our existing A/E contract have to be reworked to accomdate the Feds?
Is the contractor paid by USDA rather than the owner? If so what kind delay could be expected between the contractor's draw request and his payment?
I understand change orders have to be approved by USDA. What kind of time delay could be expected between the CO request and the authorization to proceed? What about CO work that has to be done immediately, will the owner be stuck without possible reimbursment?
What are the heartaches involved with working with USDA during the construction process due to paperwork and hoops to jump through?
Thanks for any thoughts or comments you may have.
Twich
Does anyone have experience with USDA financing as it relates to the project and construction management of a project? Any comments would be appreciated.
Case: Local government construction of a $20 million courthouse. Possible USDA financing is being suggested due to limited, or no up front financing costs, and the ability to stretch repayment of loan over 40 years vs. 20 years for a conventional bond financing.
I am familiar with the environmental and historical property aspects involved with the USDA process.
Questions: Will our existing A/E contract have to be reworked to accomdate the Feds?
Is the contractor paid by USDA rather than the owner? If so what kind delay could be expected between the contractor's draw request and his payment?
I understand change orders have to be approved by USDA. What kind of time delay could be expected between the CO request and the authorization to proceed? What about CO work that has to be done immediately, will the owner be stuck without possible reimbursment?
What are the heartaches involved with working with USDA during the construction process due to paperwork and hoops to jump through?
Thanks for any thoughts or comments you may have.
Twich






RE: USDA Federal Financing
The other expense you might have to plan for is lots of reports and progress meetings. But here again these were military assets on a tight time table because other ships were scheduled for work as soon as the ones undergoing overhaul were available to replace them on station. Your building is not scheduled for deployment so you probably won't have quite as much administrative overload if any. It would just be a good idea to make sure in advance.
It's entirely possible that none of the above will happen on this type of project.
Hope this helps.
DPA
RE: USDA Federal Financing
Twich