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Meat and Poultry Intermediary Lending Program: Things You Should Know

Meat and Poultry Intermediary Lending Program: Things You Should Know

Our team at August Brown has noticed prospective clients often ask the same or similar questions about MPILP. Here is an article to help clarify any questions that you may have about this program.

Intermediary lenders in the Meat and Poultry Intermediary Lending Program (MPILP) receive grant funds to finance and expand meat and poultry processing businesses. MPILP aims to strengthen the US food supply chain by assisting companies with the start-up, expansion, and operation of slaughterhouses and other meat and poultry processing facilities.

You may have many other questions about it, such as MPILP eligibility, how to apply for it, what are the points that make it different from Food Supply Chain Guaranteed Loan Program, and many more. This article has all your answers.

About MPILP Opportunity

USDA provides grant funding to Intermediary lenders who finance people operating within the meat and poultry industry in the MPILP program. Also, the program grants those lenders planning to finance the start-up, expansion, or operation of slaughter or other meat and poultry processing.

MPILP aims to strengthen independent meat processors’ financing capacity. By investing in small and medium-sized processors, the government is strengthening local and regional food systems, reducing barriers to processing, creating jobs, and lowering consumers’ meat and poultry costs.

Eligibility

What categories of intermediaries are eligible to apply for this program?

Those who fund — or propose to finance — the start-up, expansion, or operation of meat and poultry processing in private nonprofit businesses, public agencies, Tribes, and cooperatives are eligible to apply.

Who are the potential recipients?

As the final beneficiary in a loan, meat or poultry processors can either apply directly or through partnerships with intermediary lenders. This can be done either directly or through partnerships with other entities.

The ultimate recipients must:

  • Be a company involved in, or planning to engage in, commercial meat- or poultry-processing operations, either directly or through agreements with other companies.
  • Unless specifically exempted, conform to USDA Food Safety and Inspection Service requirements

How Can Funds Be Used?

Funds granted to intermediaries can be spent on expanding and operating meat and poultry processing capacity, such as:

  • Buying Land
  • Debt Refinancing
  • Strengthening Leaseholds
  • Constructing a New Building
  • Handling Waste Management
  • Qualifying Taxable Corporate Bonds
  • Upgrading or Growing an Existing Structure
  • a Transferrable Cooperative Stock Purchase
  • Implementing Pollution Prevention and Control
  • Financing Feasibility Analyses for Meat-Processing Plants
  • Enhancing Infrastructure or Machinery to Ensure Food Safety
  • Creating, Putting in Place, or Updating Machinery and Technology
  • Ensuring That Occupational and Other Safety Regulations Are Followed
  • Buying Cooperative Shares (By Individual Farmers or Ranchers in a Farmer or Rancher Cooperative)
  • Offsetting Start-Up Costs, Working Capital, Fees, and Other Costs Associated with Federal Inspection
  • Extending Credit to a Fund That Mainly Invests in Cooperatives (In Accordance with the Provisions of the Program)

What is the maximum grant amount?

A maximum of $15 million can be requested in one cycle, but applicants can request funds up to that amount multiple times. A minimum grant award of $500,000 applies to all grant cycles.

MPILP vs FSC comparison

MPILP FSC GLP
For those who want to – or already – finance meat and poultry processors To expand access to and financing those who are into strengthening food system infrastructure
Up to $15 million is available Loan guarantees up to $40 million
For private, nonprofit organizations, public agencies, federally-recognized Tribes, and cooperative lenders. For profit and nonprofit lenders, including chartered banks, credit unions, CDFIs, and Farm Credit Institutions.
Meat and poultry processors are eligible borrowers Borrowers must be companies or organizations supporting operations in the food supply chain (aggregation, processing, distribution, etc.).
Revolving loan funds are created with grants, and intermediary lenders must make use of them within three years. Until funds run out, loan guarantees are given to lenders on a project-by-project basis.

How August Brown Can Help You With MPILP?

August Brown has already successfully led the projects under FSC Guaranteed Loan Program. We are in the top-tier agency to help business land loans and grants provided by USDA.

Experienced professionals, therefore, completed August Brown’s high-quality feasibility study reports and underwriting wherever required. August Brown’s goal is to provide high-quality services in the shortest amount of time possible, so you can confidently move forward.

Contact our experts to learn how you can land an MPILP fund for your project.

About August Brown, LLC – Founded in 2011 by Dr. Gordon Nameni, August Brown is a boutique technology-focused management consulting and advisory firm with a specialization in feasibility studies.  The August Brown team is comprised of passionate individuals from a diverse set of backgrounds (engineers, CPAs, marketers, and analysts). August Brown provides feasibility studies that support USDA loans, M&A transactions, and financial decisions. The company delivers deep insights with analytical rigor that drive growth strategies, market positioning, and continuous improvement.

Content inspiration references:

  • https://www.rd.usda.gov/programs-services/business-programs/meat-and-poultry-intermediary-lending-program
  • https://www.rd.usda.gov/sites/default/files/FSCGLP_MPILP_Comparison.pdf

Are There Any Programs for Rural American Community Needs? Learn All About Community Facilities Programs!

Are There Any Programs for Rural American Community Needs? Learn All About Community Facilities Programs!

At August Brown, we have noticed that prospective clients generally ask the same or similar questions. Hopefully, this article will help you clarify burning questions about the United States Department of Agriculture (USDA) and Community Facilities (CF) Program.  USDA CF Programs aim to help rural communities by funding loans or grants. USDA’s primary aim is to fund projects and facilities that would set quality benchmarks for rural residents. The USDA runs CF Program to create a more resilient, competitive, and strengthening rural America. Many questions may arise about it, such as Lender’s qualifying procedure, how many specific programs to help different sectors, feasibility study requirements, and many more.

How Many Specific Programs To Help Different Sectors?

What are the different community facilities programs helping rural America,

  1. CF Direct Loans & Grants
    In this program, low-income rural communities can obtain affordable funding to construct and improve essential community facilities. It is necessary to provide a service that benefits the rural community so that the community can develop and live a quality life.
  2. CF Loan Guarantees
    Loan guarantees are provided to eligible lenders who wish to create essential community facilities in rural areas. Important community facilities are public improvements operated on a non-profit basis to develop the rural regions.
  3. CF Relending Program
    Eligible lenders (re-lenders) can in turn, re-loan for the improvement, expansion, or new essential community facilities. Applicant must have an existing loan portfolio where at least 30 percent of its loans are made in rural, high- or persistent-poverty areas.
  4. CF Technical Assistance & Training Grant
    Rural communities, Indian tribes, and nonprofit corporations will receive technical assistance and/or training to identify and plan for community facility needs. Grants will be made to associations for technical assistance and/or training related to essential community facilities programs by the Agency.
  5. Economic Impact Initiative Grants
    Funds are provided to assist rural communities experiencing severe economic depression and unemployment by developing essential community facilities.
  6. Emergency Rural Healthcare Grants
    Through the Emergency Rural Health Care program, rural health care services, food assistance, and COVID-19 testing are all made available to rural communities.
  7. Rural Community Development Initiative (RCDI) Grants
    In rural areas, RCDI grants help non-profits support housing, community facilities, community and economic development projects to support housing, community facilities, and tribal communities.
  8. Tribal College Initiative Grants
    The program assists 1994 Land Grant Institutions (Tribal Colleges) in improving their educational facilities and purchasing equipment. Tribal colleges can use the funds to improve infrastructure, purchase equipment, and develop essential community facilities.

Which Borrowers can take advantage of the USDA CF Programs?

Eligible borrowers include:

  • Public bodies,
  • Community-based non-profit corporations,
  • Federally-recognized Tribes.

What Projects Or Facilities Are Eligible For Funding?

The program offers funds to construct, expand, or improve healthcare, education, public safety, and other facilities that can assist rural communities in attracting and retaining businesses. These projects or facilities include

Fire and rescue stations,
Village and town halls,
Health care clinics,
Hospitals & adult and child care centers,
Assisted living facilities,
Rehabilitation centers,
Public buildings,
Other community-based initiatives include schools and libraries.

The financing may include professional fees, land acquisition, and equipment purchases. In short, those facilities that are eligible will improve the essential quality of life and assist in rural America’s development and sustainability. 

What is an eligible area?

This program is available in rural areas with no more than 20,000 residents, including cities, villages, townships, and towns, as well as Federally Recognized Tribal Lands.

Are there any funding priorities?

  • Population and median household income will determine priority.
  • The population of a small community should be less than 5,500.
  • A community with a median household income below 80% of the nonmetropolitan state average.

What Are The Terms For Direct Loan?

 Funding is provided through a competitive process.

  • State statutes, the applicant’s authority, or a maximum of 40 years may determine how long the loan must be repaid.
  • After approval, the interest rate is fixed for the entire term of the loan and is calculated based on the median household income and population in the service area.
  • There are no pre-payment penalties.
  • Contact Rural Development for current interest rates and details.

Additional Requirements for CF Direct Loan & Grant Program?

  • Borrowing money, obtaining security, repaying loans, building, operating, and maintaining the proposed facilities need legal authorization.
  • A project cannot be financed through its resources or reasonable terms and rates of commercial credit.
  • The facility must serve the rural area where it is/will be located.
  • There must be substantial community support for the project.
  • There must be an environmental review completed and acceptable.

Construction Or Renovation Buildings Requirements To Get Funds

Architectural services are needed to prepare construction plans, specifications, bids, and contracts and monitor the construction process.

A Preliminary Architectural Feasibility Report, including a Cost Estimate, must be submitted to the RD Area Loan Specialist and RD State Architect at the earliest possible time. If the applicants are decided to get funds for architectural projects, the State Architect will evaluate and provide architectural and construction advice to them and their Architects. State Architect can guide in the following areas:

  • Preliminary site visit and project evaluation
  • Agency approval of Owner/Architect Agreements in the Preliminary Architectural Feasibility Report
  • Acceptance of Plans & Specifications by the Agency
  • Documents for the Construction Contract that have agency approval
  • Building work and construction oversight

Final Words

Do you want to help low-income, financially distressed rural communities? USDA is ready to fund your projects if all eligibility and feasibility requirements are met. It benefits lenders with loan guarantees to develop essential community facilities in rural areas.

For a lender to get approved, proper feasibility studies, collateral, underwriting, and other requirements must be met.

August Brown is here to help you with the complicated part of the application process – the feasibility study that helps you become a lender. Providing feasibility studies on time, adhering to rigorous technical standards, and using comprehensive methods ensures the highest quality.

Discover how our consultations can help you improve your business outcomes. Contact us today!

About August Brown, LLC – Founded in 2011 by Dr. Gordon Nameni, August Brown is a boutique technology-focused management consulting and advisory firm with a specialization in feasibility studies.  The August Brown team is comprised of passionate individuals from a diverse set of backgrounds (engineers, CPAs, marketers and analysts). August Brown provides feasibility studies that support for USDA loans, M&A transactions, and financial decisioning. The company delivers deep insights with analytical rigor that drive growth strategies, market positioning and continuous improvement.

Content inspiration references:

  • https://www.rd.usda.gov/programs-services/community-facilities
  • https://www.rd.usda.gov/sites/default/files/fact-sheet/508_RD_FS_RHS_CFDirect.pdf

August Brown: A Look Back at a Successful Year in 2022

August Brown: A Look Back at a Successful Year in 2022

August Brown is a management consulting & advisory firm helping businesses for over 10 years.

The year 2022 was a critical moment in the history of August Brown. It marked a period of incredible growth and success, and it’s something that we at August Brown are incredibly proud of. But this success wouldn’t be possible without our client’s trust and eagerness to grow exponentially.

While the numbers speak volumes about our performance this past year, what does it mean for us? How have our clients supported us to reach such heights in such a short time? In this blog post, I invite you to join me on an exploration of the business journey of August Brown.

We start with some achievements that grounded a successful year for us:

Unpacking the Remarkable Achievements This Year

Our clients were awarded over $330 million in loans and grants by the USDA

Our clients are thrilled to have been awarded over $330 million in loans and grants by the USDA. This significant amount of financing from the federal government is a gratifying accomplishment for our team and those who sought assistance from us.

We are proud that we were able to provide much-needed guidance to many small businesses, particularly those in rural areas. The funds will support these companies through economic hardship, allowing them to continue operations without suffering financially at this moment in history. It’s heartening to know that our collective efforts made such an impact with tangible results – it truly makes everything worthwhile!

Our clients were honored with Food Supply Chain Award

Our clients were recently honored with the Food Supply Chain Award, a prestigious award that celebrates the most innovative and successful food supply chain initiatives.

It is awarded to organizations that have significantly improved their processes within the industry, resulting in greater efficiency and sustainability in the American food supply chain. We are very proud of our clients for receiving this recognition, as it shows how hard work can result in success.

Additionally, this award serves as a reminder for anyone striving for excellence within the food supply chain sector – success lies in your hands! We hope our client’s achievement will inspire others to push themselves further so that we can all continue innovating and improving upon existing efforts.

We added new projects that are in the pipeline of success

Our team at August Brown firm is thrilled to announce that several new projects have been added to our pipeline of success. These projects are being developed with the same commitment we’ve always had toward delivering excellence and innovation while remaining conscious of cost efficiency.

We look forward to seeing how these endeavors come together to bring greater value into the hands of our clients. As part of every new project, our team researches and analyzes potential solutions, considering scalability, sustainability, security, and user experience. We believe these factors will help us stay ahead in an ever-evolving market where customer satisfaction is key.

Valuable Words From One Of Our Clients

We take immense pride in what our clients have to say about us. Recently, one of our satisfied customers had some valuable words for us that were both touching and genuinely humbling.

They mentioned how we had eased their business processes by providing them with the best service possible, being highly responsive, and taking care of all their needs quickly and efficiently.

I have separation anxiety from you all! I am so appreciative of your efforts! Thank you so so much!

- Linda Lowry, CEO, Illinois Institute of Nursing Studies, Inc. (Alden Davis, day job)

Our customer also praised the quality of service and consultancy, which is unmatched in the ever-evolving world and at a very reasonable investment! It was amazing to know that someone close to you appreciates your work so much; it gives you the strength to continue striving towards excellence every day. We look forward to many more such testimonials from other happy customers in the future as well!

Thanks For Your Support

There is always the best time to show gratitude and appreciation for all we have. At August Brown, one of the people we are most thankful for are our wonderful clients!

Without them, our success wouldn’t be possible. We thank each and every client who chooses us as their partner in achieving their business goals; without them, none of this would be possible!

Be it high-quality feasibility studies, custom underwriting, planning business strategies, or robust market analysis, all the projects we received had some unique challenges. But calling them challenges is incorrect here as these routes us new ways to solve unique problems. These unique learning curves helped our expert team become more expert at what they do.

Happy Holidays

At last, we want to take a moment to wish you a joyous holiday season and a flourishing 2023 year for your business.

This new year, we want to send out a heartfelt “Thank You” to all those who have placed their trust in us and allowed us to help bring life into whatever project they were working on. Our team members take great pride in knowing that through hard work and dedication, both sides get closer together over the course of any project – it doesn’t just happen overnight! As such, let’s give thanks for collaborating with some amazing individuals dedicated to making something great together.

All you need to know about Underwriting for Business Loans

What is Underwriting?

When any business applies for a loan, the lender has to evaluate the loan capacity, credit history, and indemnity of the business/applicant. The information gathered is then used to make a lending decision.

What is the significance of Underwriting?

The loan decision leans greatly towards the underwriting guidelines that need to be followed. These underwriting guidelines are formed keeping in mind various factors that will restrict the lending decision made by the lender. The information gathered is thus used to determine the following if the loan is to be approved:

  • Loan amount
  • Credit terms
  • Interest rates
  • Repayment Obligations, etc.

What are some standard Underwriting Guidelines?

The majority of lenders use underwriting guidelines established by the Federal Reserve for Small Business Administration (SBA) loans. However, every lender may make an individual decision based on the findings after completing their underwriting process.
Significant attention is paid to the capacity of the applicant/ business to repay the lent amount. Therefore, the lender considers the current and anticipated future cash flow subject to a diverse set of economic conditions.
This can also be achieved by performing an extensive feasibility study by the lender from the applicant. However, again, only an expert generally conducts these feasibility studies.

Basic underwriting guidelines are based on the following:

  • Regularity in income, adequate enough to meet the debt obligation
  • The value and quality of the collateral
  • Applicant’s credit history
  • Applicant’s equity in the business
  • Additional collateral or assets
  • Business owner’s creditworthiness & credit history

What is the typical Business Loan Application Process?

Once the business decides the lender through which they wish to apply for the loan, there is usually a set process that they will go through with the loan.

  1. Filling out the application form
  2. Submitting required documentation
  3. Loan Underwriting
  4. Underwriting Review
  5. Lending Decision based on the review
  6. Disbursement

What are the standard Documents required for a Business Loan?

Different lenders may request a myriad list of documents dependent upon the borrower’s request for

  • The kind of loan applied for
  • The loan amount applied for
  • The motive behind the loan application

Most common documentation that lenders require:

  • Company’s Business Plan
  • Business Financial Statements
  • Business Owner’s Financial Statements
  • Business Tax Returns
  • Business Owner’s Tax Returns
  • Business License
  • Outstanding Financial Obligations
  • Credit Score/ History
  • Collateral, if need be

We’ll talk more about the business documents in our next blog, stay connected.

Underwriting at August Brown

August Brown is a boutique agency dedicated to accelerating our client’s growth by providing niche consulting services. We provide unmatched depth, unparalleled insight, and exceptional service with the singular focus of exceeding our client’s expectations. We understand that risks accompany every transaction. We acknowledge that our paramount responsibility to our clients is to minimize that risk. As such, August Brown aims to conduct underwriting services at an exemplary standard. Each transaction is assessed thoroughly, with each aspect analyzed in-depth before submitting our results. With August Brown, you can rest assured that the underwriting service you receive will be unparalleled.

We pride ourselves on delivering the highest quality services and returning results in the shortest possible turnaround time, enabling our clients to make confident decisions and swiftly move forward with their business.

After completing the underwriting process, we offer a full suite of consulting services to support our clients. For example, should you require a feasibility study, management consulting, market analysis, or strategic guidance, we can help your business achieve its goals and reach inimitable heights.

Schedule a Meeting: www.augustbrown.com/contact
Please send us an email: Office@augustbrown.com
Give us a call: (414) 704-6755

 

Are You Prepared to Take Advantage of the Opportunities Created by the USDA Food Supply Chain Guaranteed Loan Program?

Is Your Business in the Food Supply Chain? You Do Not Need to be Based in A Rural Area to Access the Available $1.3 billion from USDA

The USDA has announced a new guaranteed loan program for projects that strengthen the U.Sthe food supply chain. The Program makes available nearly $1.3 billion in loan guarantees. These loan guarantees will facilitate new investments in infrastructure development for food aggregation, storage, processing, manufacturing, transportation and handling, wholesaling, and distribution. The program will enable the creation of a more resilient, diverse, and secure U.S. food supply chain that addresses bottlenecks and increases capacity across the food supply chain ecosystem.

The Food Supply Chain Loan Guarantee Program backs loans up to $40 million for qualified lenders to finance food systems projects, specifically for the start-up or expansion of activities in the middle level of the food supply chain. It encourages applications for projects that advance the recovery from the COVID-19 pandemic, promotes equitable access to USDA programs and services, and reduces the impacts of climate change on rural communities. Eligible borrowers do not need to be based in a rural community.

The USDA Rural Development (RD) administers this loan program. It accepts electronic applications from lenders through the Food Supply Chain Online Application System so long as funds are available. It is uncertain how long the funds will be available but as of right now, 99% of the funds are still up for grabs! Interested applicants can check the status of available funds directly with the USDA OneRD Guarantee site, https://www.rd.usda.gov/onerdguarantee.

Feasibility study – A must-have

All applicants for this program need to submit a feasibility study as a part of their application making a feasibility study a must-have for businesses seeking investment under this program. A feasibility study is a critical tool both in providing information about the borrower and in evaluating the probability of the project’s success.

If you work in the banking and financial service sector, you are well aware of feasibility studies as an effective tool to evaluate any investment proposal. However, your clients in the food supply chain sector may not be familiar with the benefits of this excellent tool. Let August Brown help you explain how a feasibility study is beneficial even beyond the loan approval process.

Why August Brown?

At August Brown, we pride ourselves on the depth and quality of our feasibility studies. We have assembled a team with decades of experience across a variety of industries to best support our clients. This also allows us to conduct our feasibility analyses with unmatched analytical rigor.
In addition to the core analysis mentioned above, we build compelling financial models with Monte Carlo simulations that display realistic outcomes, meticulously hone in on the risk factors, and offer risk mitigation insights that will smoothen the diligence process of investors before a funding or acquisition event. The depth and insight provided by our feasibility studies can offer a clear roadmap to any business looking to assess the viability of a project. With an August Brown feasibility study, you can be sure your clients are getting the highest quality analysis available.

We further support this with our post-transaction services, which work to implement continuous improvement initiatives that will continue to enhance the value of the firm. To learn more, contact our offices today at office@augustbrown.com or just go ahead and set up your free strategy session with our team.

How will CLTs affect you?

a forest

August Brown conducted the feasibility analysis for a large non-profit land conservationist company located in Washington State to prove their plans to develop new public housing units from culled trees in protected forests of the state.  The plan called for bringing in European technology for the conversion of the trees to cross-laminated timber (CLT) and glue-laminated timber (glulam or GLT) to serve as the building framework for modular units. The study proved that the model reduced the total time and cost for new modular manufacturing units for the public housing sector.

The Client’s project proves the model for how at-risk forests can provide culled timber in a manner that can:

(1) reduce the fire hazard from forests in the State of Washington;

(2) lower greenhouse gas emissions by proving the utility of CLTs and GLTs as effective replacements for steel and concrete in building construction framing;

(3) produce lower-cost public housing at a faster clip through the use of CNC based precision manufacturing of modular structures ahead of onsite construction;

(4) serve as a national model to lower the cost of public housing and provide a demonstration of how to leverage the housing construction industry to fight climate change.

We look forward to this project coming alive as it may produce a model to tackle the national housing crisis in America!

Copyright 2020 August Brown, LLC

 

Why Do You Need a Feasibility Study?

If you work in a bank, private equity, or investment firm, you are likely already familiar with feasibility studies and their use in properly supporting the evaluation of a proposal. However, a feasibility study is often an unfamiliar tool to business owners and is one that could have a dramatic impact the success of their initiatives. It is important to talk to your clients about what a feasibility study is, how it can benefit them, and how to choose a qualified firm to conduct it.

When done correctly, a feasibility study will clearly lay out the technical and economic feasibility of the business as a whole, or of a project under consideration. The well-executed feasibility study will also include market analysis, management evaluation, and a financial viability assessment that enables your leadership team to more accurately measure the probability of successful outcomes for the business or project. Further, a feasibility study has the potential to provide a business with a roadmap for successfully navigating potential challenges. In short, a feasibility study is an excellent way to identify opportunities while simultaneously mitigating risk. 

Read on to see how to talk to your clients about how a feasibility study can benefit their business initiatives and feel free to share it with colleagues!

Why Do You Need a Feasibility Study Expert?

A feasibility study is required for businesses seeking to raise funds or apply for loans over a certain amount (i.e., $5 million for the USDA). It will be used by potential equity and/or debt investors to answer basic questions about your business and to give them an indicator as to the likelihood of its success. So, the short answer is, if the business is seeking a USDA loan then they have to have one!

That said, these studies are not just for loan purposes and can be an excellent resource for internal planning purposes, identifying obstacles and opportunities that may not have been initially foreseen. This is an invaluable asset as the feasibility study helps you unveil the different ways your business can grow and identify the risks that must be mitigated. It illuminates the likelihood of your project’s success while considering relevant factors, including economic, market, technical, financial, and management constraints.

The study further helps you convince investors and /or banks that your project is worth investing in, as it enables you to address how and where a project can be done, with detailed assessments of viability.  Additionally, as mentioned before, should you be applying for a USDA Business and Industry loan and grant, a feasibility study conducted by a qualified firm will be required for your application. It can provide a detailed analysis of the technical capabilities, financial viability, which supports your business in identifying market growth opportunities for the specific product you will be developing, as well as assisting in the exact target market selection process, including market segmentation and positioning. A feasibility study is a great way to refine your outcome-driven innovation, as it helps you to examine your project with tremendous depth and insight prior to initiating the endeavor. 

It is also important to note that who you choose to conduct the feasibility study is critical. The USDA, in particular, has requirements that feasibility study analysts must meet. Should you choose an unqualified provider, the study may be rejected. Further, it is important to understand the level of depth provided in each firm’s feasibility study. Some firms will provide the basics needed and nothing further. While this may be sufficient to obtain funding, the study will give little insights to further assist your business.   

Why to choose August Brown for Feasibility Study?

At August Brown, we pride ourselves on the depth and quality of our feasibility studies. We have assembled a team with decades of experience across a variety of industries in order to best support our clients. This also allows us to conduct our feasibility analyses with unmatched analytical rigor. In addition to the core analysis mentioned above, we build compelling financial models with Monte Carlo simulations that display realistic outcomes, meticulously hone in on the risk factors, and offer risk mitigation insights that will smoothen the diligence process of investors before a funding or acquisition event. The depth and insight provided by our feasibility studies can offer a clear roadmap to any business looking to assess the viability of a project. With an August Brown feasibility study, you can be sure your clients are getting the highest quality analysis available. We further support this with our post-transaction services, which work to implement continuous improvement initiatives that will continue to enhance the value of the firm. To learn more, contact our offices today at office@augustbrown.com or just go ahead set up your free strategy session with our team.

 

FAQ’s

What is a feasibility study and why is it important for business owners?
A feasibility study assesses the technical and economic viability of a business or project, helping business owners identify opportunities and mitigate risks.

How can a feasibility study benefit a business initiative?
A well-executed feasibility study provides market analysis, management evaluation, and financial viability assessment, enabling accurate measurement of the project’s probability of success and offering a roadmap to navigate potential challenges.

Why is a feasibility study necessary for businesses seeking funds or loans?
Feasibility studies are required by potential equity and debt investors to evaluate the likelihood of a business’s success and answer basic questions about its operations. They are particularly necessary when applying for loans over a certain amount.

Can a feasibility study be useful for internal planning purposes?
Absolutely. Feasibility studies help businesses uncover unforeseen obstacles and opportunities, refine project outcomes, and identify risks that need to be mitigated. They provide valuable insights for internal planning and growth strategies.

Why is it important to choose a qualified firm to conduct a feasibility study?
A qualified firm ensures compliance with specific requirements, such as those imposed by the USDA. An unqualified provider may result in rejection of the study. Additionally, choosing a firm with depth and quality ensures a more thorough analysis and valuable insights beyond basic requirements.

What sets August Brown apart as a provider of feasibility studies?
August Brown offers depth and quality in their feasibility studies, backed by a team with extensive industry experience. Their rigorous analysis includes comprehensive financial models and risk mitigation insights. August Brown also provide post-transaction services to enhance the value of the firm.

Copyright 2021 August Brown, LLC.

Case Study: How the Non-Profit Received $46M with Tax Increment District Support

The August Brown Client, a Colorado 501(c)3, sought $46 million to complete the construction, the purchase of the equipment and the financing of the soft costs for the development and launch of its Film Center. 

The Challenge:

Though the company itself is quite profitable, its Film Center was essentially a startup with no prior financial performance. They needed help to gain the funding needed.

The Solution:

To solve the problem, August Brown created a  strategy that separated the Film Center from the shadow of the company. They created a new financial model that demonstrated the impact of the contribution from external sources to the financial performance of the Film Center. 

August Brown also worked with the state of Colorado to confirm the qualification of the Film Center under a tax incremental district for tourism business and included the state funds to the bottom-line of the project in the model. 

August Brown provided the client with a feasibility analysis that concluded in a positive determination across five key areas of assessment:

-Economic Feasibility

-Market Feasibility

-Technical Feasibility

-Financial Feasibility

-Management Feasibility

Additionally, August Brown provided forecasted revenues based on Monte Carlo simulations and recommendations to the leadership team. Through a USDA-backed bank, the Flim Center project received $46 million in funding and is currently in the construction period of their project.

 

Dr Gordon Nameni on Crossing the Chasm from R&D into the Commercial Markets

As founder and partner of tech-focused Milwaukee consulting firm August Brown, Dr Gordon Nameni helps companies take their technologies and products across the R&D/commercial gap, create new products from emerging technologies, explore AI and automation possibilities and scout supply chain opportunities. He founded the company in 2011 after completing a Fulbright Fellowship in South Africa and then a National Science Foundation Corporate post-doctorate at AO Smith Corporation.

Why did you found August Brown? 

I am a technology evangelist, a technology translator and I am passionate about increasing the amount of technology that crosses the chasm from research and development into the commercial markets. When we can get new technologies into the hands of people, it can really change lives. Let me give you an example. In the United States, the government wants to save the coal industry and keep coal miners employed and yet environmentally, we don’t want to burn coal. So what can we do here? We have a client that mixed coal with a polymer resin to create a coal composite ceramic that doesn’t burn. August Brown worked with the client to produce a roof shingle product from the technology. The roof shingle concept was not intuitive but the application of coal in roof shingles has opened the door to many more opportunities for coal as a valued-added product in the building materials industry. The US Department of Energy is now providing $122m in funding to establish coal innovation centres throughout the US. It’s estimated that roof shingles could use 10 tons of coal for the average house, which could total 23,000 metric tons in the next decade. This means that residential and commercial buildings could one day receive CO2 mitigation credits that could ultimately make an impact on the national carbon footprint. The patent is still pending on the coal-based roof shingle and other applications that we have developed and qualified. That is just one example of how we can support American innovation.

What do you mean when you say you are a technology translator? 

Technology translation is about matching scientific or industrial requirements to capability from elsewhere, creating new applications in new revenue-generating spaces. The coal-based ceramic roof shingle is an example of technology translation. ‘Technology translators’ often work to identify opportunities for innovation in the marketplace and connect them with emerging technologies in academic and research laboratories. Our national laboratories in this country are extraordinary and we can work more creatively to integrate their resources. Argonne National Lab started a venture capital fund that supports technology development around the energy sector for start-up and early-stage companies. This is a great way to support nascent technology development.

Along those lines, how do we foster technology innovation? 

We work on developing technology and innovation in our own backyards. Where I work and live – the greater Milwaukee area – the state of Wisconsin provided $3bn in tax credits for a company to build the next generation liquid crystal display manufacturing plant in the area. Everything was put in place including a real estate park and then the company backed out. The Milwaukee region has the second highest density of manufacturing companies in the US. As the US government continues to strengthen the manufacturing capacity of the supply chains in areas of national security priority such as the medical and semiconductor industry, the MMC Triangle region (Milwaukee, Madison and Chicago) will be a top destination for these two industries. We are now working on a large study that will analyse the feasibility of repurposing the assets in the MMC Triangle in support of a semiconductor manufacturing plant in the same development site that has already been prepared near the Milwaukee area. This region is a natural fit for the semiconductor industry because of the talent pool, manufacturing base and access to freshwater resources, which will ultimately contribute to lower chip manufacturing costs. If the resources in the region can be organised around the effort, we can make this happen and build a thriving semiconductor industry in the Midwest.

You mentioned you did a Fulbright Fellowship in South Africa. Did it play a role in what you’re doing now? 

Yes, I worked on the development of new materials and devices for water purification at the community level. Through that experience, I became passionate about converting technologies into solutions that can make an impact in daily lives. In my post-doc at AO Smith, I had the opportunity to begin to place the technologies that I was developing into commercial formats. That’s the reason I ultimately opted to pursue a career as a management consultant because I saw that I actually had greater leverage in converting technologies into real products that could affect lives.

I’ve read that in your free time, you like to do poetry slams. Would you ad lib a poetry slam right now on technology? 

Yes, of course. Tell me not in solemn numbers, life is nothing but algorithms and widgets for the soul. For the soul is dead that slumbers and things are not what they seem. So give me your algorithms, give me your lessons and I will show you how to convert that into life-changing missions.

Do you want to generate greater profits? 3 points that support automation

Do you want to generate greater profits? 3 points that support automation

When considering how to increase profitability, do you focus on increasing revenues or cutting costs? Over the last several months, August Brown has been working with industrial goods manufacturers that are seeking to increase revenues and profitability. In this sector, it is easier to impact profitability in the short run by focusing on cost reductions.
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To achieve impactful cost reductions, an organization must be willing to accept short term cost increases in order to achieve sustained cost reductions. Two areas that many companies overlook that can make a sizable contribution is the implementation of artificial intelligence and automation.
In this article, we focus on the 3 key points of consideration that can support the successful adoption of cost reducing automation at a manufacturer.
#1: Maximizing the labor force
An automation platform with an easy learning curve makes it possible to re-scope a traditional line position with minimal investment. Strategically repurposing unskilled workers to more skilled tasks not only enhance the manufacturer’s bottom line, but also improves the workers’ skill sets. This is a win-win situation – the employee gains added skills, expertise, and job satisfaction, and the manufacturer gains the benefit of profiting in a competitive marketplace.
 
#2: Increasing ROI
What value can automation provide over time and how long will it take to achieve a return on the total investment? When calculating costs, some expenses that often increase the project budget, are more than the price tag of the manufacturing automation tool itself. You’ll want to consider hardware and software cost, programming time, work cell integrations, employee training, usage (hours) and other customization costs.
#3: Improving customer response time
The advantage of automating is the speed with which you can get a system into production at your factory. Today customers have multiple offerings, a variety of products, and often highly customized options. This makes the rate of production line changes and assembly to meet customer demands very challenging. If your time to market is slow, customers can move to your competitors to fulfill their needs.
 
If you are a manufacturer and want to increase profitability, automation can be achieved at a lower cost through multiple tactics. To learn more, contact August Brown at office@augustbrown.com and one of our consultants will offer you a free strategy session.
 
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