Loan and Grant Comparison Tool

Inputs
Assumptions
Rate at which dollar value of benefits is anticipated to increase each year as a result of inflation, input range >0
Value must be a number > 0
Rate at which dollar value of construction costs is anticipated to increase each year as a result of inflation, input range >0
Value must be a number > 0
Project Information
Most recent cost estimate for design and construction of project, input range >0
Value must be a number > 0
Number of years needed to complete design and construction of project, input range 1-50
Number of years project will operate without rehabilitation, input range 1-50
Estimated annual outlays for O&M, input range >0
Value must be a number > 0
Benefits / costs of project, as calculated by project sponsor, input range >0
Value must be a number > 0
Rate used to discount future project cash flows as part of the BCR calculation, input range >0
Value must be a number > 0
Percentage of costs planned to be paid for by Federal appropriations, input range 0%-100%
Value must be a number between 0 and 100
Federal Financing
Percentage of design and construction costs planned to be financed through a Federal loan, input range 0%-100%
Value must be a number between 0 and 100
Anticipated interest rate on Federal loan, input range >0
Value must be a number > 0
Costs associated with underwriting, legal support, registration fees and audit fees as % of Federal loan, input range >0
Value must be a number > 0
Number of years loan payments are deferred after construction is completed, input range 0-5
Number of years over which the Federal loan is repaid, input range 1-30
Local Financing
Anticipated interest rate on local loan, input range >0
Value must be a number > 0
Costs associated with underwriting, legal support, registration fees and audit fees as % of local loan, input range >0
Value must be a number > 0
Number of years after start of construction that financing is received (typically zero), input range 0-50
Number of years over which the local loan is repaid, input range 1-30
Rates for Net Present Value (NPV) Evaluation
Local target return on capital (e.g. local borrowing rate), input range >0
Value must be a number > 0
Optional - Other return on capital (e.g. Weighted Average Cost of Capital), input range >0
Value must be a number > 0

Results


Comparison of Alternatives
Comparison of the project's net present value (benefits minus costs) between the two alternative scenarios.
Alternative #1 - 100% Local Equity with Federal Loan for % of Project Costs
Alternative #1 assumes that 100% of the project cost will eventually be paid by local equity but will initially be financed by a combination of Federal loan and a local loan (share specified by user inputs).
0.00
0.00
0.00
0.00
0.00
Alternative #2 - % Local Equity with Local Loan
Alternative #2 assumes that some share of the project cost (specified by user inputs) will be paid by a grant, and the remaining cost will be financed through a local loan.
0.00
0.00
0.00
0.00
0.00


Break-Even Analysis
Comparison of the "break-even year" (year in which a loan becomes less costly than awaiting a grant) using the local hurdle rate as well as a different user-input discount rate.
Local Hurdle Rate: %
0
0
0
Other User-Defined Discount Rate: %
0
0
0