FW: late comments on grant application

From: Alan Wallen [mailto:arivaca.com@gmail.com]
Sent: Wednesday, July 01, 2009 3:48 PM
To: broadbandusa
Subject: late comments on grant application

Hi,

Is there someone there that can discuss my concerns?
I submitted the following on the online comment form:

After reading the grant application guidelines, I am struck by the lack monies available for accounting.  Even in the awarding of this (BTOP) program's funding, congress had the good sense to send some money to the GAO to make sure of the accounting and accountability of the program. While large corporations already have massive accounting departments that can easily handle the paperwork generated by receiving a grant, most small businesses will have trouble filing the appropriate documents, because there is no money available in the grant to pay for such.  Therefore, expect many applications from medium to large companies; I think most of the small companies can't afford your grants.
Many small internet providers have found their niche in communities that are not profitable enough for large corporations. While not wanting the burden of the rural internet user, but also not able to compete in these areas with the small rural ISP, large corporations can use these grants to try to drive their only competition out of business.
While this comment is filed after the deadline for comments,  I hope that it may still be read and give one pause, as I believe driving small business out of business was not the intent of federal stimulus package.

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my home phone is 520-398-3009
I think a change in the guidelines that encourages the applicant to list the cost of grant administration in their grant proposal would allow many smaller businesses to apply and actually succeed in securing these grants.


Here is a quick and crude "real world" example:
If I apply for $100,000 to upgrade backhaul facilities so that I can expand my business over the next 3 years from 100 customers to 1000 customers.  I won't actually see a real revenue boost for at least 1 year after the grant money is received.  But to administer the grant and file all of the paperwork involved, I will need to hire an accountant.  Even the cheapest accountant I know would not work for less than $30,000 per year.  So, the actual cost of the grant should be listed as something like the following:

                  Backhaul upgrade

equipment
  cisco this ..................... $10,000
  routers that ................ $8,000
  media converter .........$2,000
  whatever else ..............$50,000
--------------------------------------------
                                           $70,000
Labor
    trenches ....................$20,000
    construction..............$10,000
---------------------------------------------
                                         $30,000

Administration
    grant application ......$5,000
    monthly reports ........$15,000
    accounting services ..$10,000
----------------------------------------------
                                           $30,000

Grant total $130,000


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Thanks for your time,
Alan Wallen