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.
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).
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.
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.
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
