General Information

ARRA Grant Information

Case Studies

MIDDLE MILE ANALYSIS

The following is census block data and requested funds analysis from a sampling of (44) BIP/BTOP Middle Mile Projects. The sampling group includes all California based middle mile projects and a random sampling of projects as they compare to Grover Beach's application.

Of the 44:

• 14 are below the 75% threshold for unserved and underserved over total market. Grover Beach is at 89%, Surfnet at 54%, the CCBC at 31%, and Level 3 at 22%.
• Totals:
  • Total Served: 11.4 million
  • Total Underserved: 3.9 million
  • Total Unserved: 570,000
  • Average Un+Underserved/Total Ratio: 68% (4 records thrown out for being over 100%)
  • Average Unserved/Total Ratio: 16% (Same 4 records thrown out)
  • Cost per Total Served:
    • Average = $1,433
    • Median = $178
    • Average from $50 to $1000 = $279 (26 of 44 applications)
    • Grover Beach came in at $179 on this analysis.*
    • Top four come in at $1200, $1900, $16k, and $19k.
    • Bottom 9 from $2 to $45
  • Grant to Loan Ratio:
    • Average for the 44 is 69%. The RUS is looking for 50% or less
    • Median is 50%
    • Grover Beach is at 86%
    • Removing the 100% Grant projects (15 with 1@99%) and (1) at 100% loan, we are left with an average of 63%.
    • Median is 50%

* In the application we reported $255 per person, however this was based on total project costs whereas the analysis here does not include the 31% equity investment. So all these numbers are equal based on requested funds, but not based on total project costs as we don't know the equity contribution to the project but we can assume a minimum of 20% across the board.

For middle mile projects in California:

• Total Served: 4 million
• Total Underserved: 1.78 million
• Total Unserved: 256,000 (40% of nation's total unserved!)
• Average Un+Underserved/Total Ratio: 71%
• Average Unserved/Total Ratio: 26%
• Cost per Total Served:
  • Average = $191
  • Median = $92
  • Average from $50 to $1000 = $139 (8 of 13 applications)
  • Grover Beach came in at $179 on this analysis.*
  • Top one comes in at $1,160
  • Bottom 3 at $3, $6, $13
• Grant to Loan Ratio:
  • Average for the 12 is 93%. The RUS is looking for 50%
  • Median is 100%
  • Grover Beach is at 86%
  • Removing the 100% Grant projects (8), we are left with an average of 78%
  • Median is 81%
• 7 of 13 projects come in over 75%, 4 of those are asking for 100% grant funds (a negative), an additional company falls out by having no unserved coverage and the per person cost is 20-30% of trending average, so it may be too low. That leaves Grover Beach and Systems Architecture. Grover Beach has a better grant to loan ratio by 15%.
• Using a ratio of unserved to total only three come in over 75%, Grover Beach, Siskiyou, and Systems Architects out of San Joaquin. Imperial County is next on the list at 24%.