USH 12 Middleton Bypass | Middleton, WI

Funding FAQs - Questions 3 and 4

Amanda Rethwisch | with 0 Comments


Funding FAQs - Questions 3 and 4

Funding FAQs - Questions 3 and 4.
Our December newsletter was all about providing you with answers to some of your frequently asked questions. Today we are providing answers to two questions:
 
Can grant funds be drawn from on an as-needed basis, or will a grant simply reimburse our community after we spend money on a project?
In Wisconsin, Iowa and Illinois, draw-downs take anywhere from four to six weeks, so grants are typically viewed as reimbursement programs, because contractors deserve to be paid sooner than that.  However, keep in mind that in all states, a grant-funded project must have an award letter, contract and a completed environmental review before the first shovel goes into the ground.
 
Should communities receiving grant funding secure interim financing? 
It’s not required, but it is encouraged, since most contract documents require payment to the contractor within a specific time period that is often less than the four to six weeks it typically takes for grant programs to pay the municipality. Your community could alter contracts to reflect a longer period prior to payment, but that would likely result in higher bids. 

Filed Under Funding Tags: 

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