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**AFF TOPICALITY** AT: USFG must own
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**AFF TOPICALITY**AT: USFG must ownFederal investment includes assets not owned by the USFG Istrate and Puentes 9 (Istrate, Emilia, senior research analyst and associate fellow with the Metropolitan Infrastructure Initiative specializing in transportation financing, and Puentes, Robert, Senior Fellow and Director of the Metropolitan Infrastructure Initiative, December 2009, “Investing for Success Examining a Federal Capital Budget and a National Infrastructure Bank”, Brookings Institute)FS Transportation is also interesting in budget debates because it represents a case where the federal government invests in capital assets it does not own such as state and local roads. More than three quarters of the federal transportation investment goes to state and local assets (Figure 3).12 While the annual level of federal investment is usually the subject of contention, the identification of the object of investment is crucial for an effective federal investment process.13 The federal government is a special case, because it invests in capital assets that does not own, such as state and locally owned assets. The discussion around the object of investment focuses on the distinction between federal and national capital.14 loan guarantee=investmentLoan Guarantees are investments, not subsidies Shaffer Et al 9 (Budd, Senior Financial Analyst at DAI Management Consultants “Loan guarantees: investments, not subsidies” http://www.neimagazine.com/story.asp?storyCode=2054006) Through the Loan Guarantee Program, the Department of Energy ("DOE") has been entrusted with up to $90 billion in guarantee authority to facilitate the development of clean energy technologies. Before considering the ideals the program seeks to promote, the sheer magnitude of the authorization alone warrants consideration. The prudence of a $90 billion program should be assessed with impartial analysis of the risks and rewards. A simple analysis that treats the loan guarantee as an investment made by the government in exchange for future tax revenue can enable these risks and rewards to be evaluated in the same objective manner as any investment decision. Although the initial inclination may be to classify the loan guarantees as a subsidy, the analysis detailed herein reveals a mutually beneficial arrangement. The loan guarantee differentiates itself from a standard subsidy in that it is likely to result in a positive return on investment for the U.S. government. Typically, a subsidy is defined as a grant by the government to assist an enterprise deemed advantageous to the public. That is, subsidies are extended without any expectation of direct monetary return. In contrast, the Title XVII Loan Guarantee Program requires recipients to pay for the guarantee through a Credit Subsidy Cost ("CSC"). The term CSC is an oxymoron, however, in that if the loan guarantee were a true subsidy, the government would not require this compensation. Through the CSC, recipients are required to pay the net present value of the anticipated cost of default. This framework is similar to that used by insurance companies to calculate premiums. Solyndra proves a loan guarantee is an investment Antle 12 ( James is an associate editor of The American Spectator “Solyndra Nation” http://spectator.org/archives/2012/04/25/solyndra-nation) Another day, another Solyndra. Solyndra, of course, is the solar energy company that first attracted national attention to the green jobs fad's darker hues. Solyndra received a $573 million loan guarantee from the federal government. It was considered the first major "public investment" of its type in alternative energy by the Obama administration. The White House originally estimated that government support would help Solyndra create 4,000 new jobs. Instead by September 2011, the company had largely ceased operations, filed for Chapter 11 bankruptcy protection, and laid off nearly all its employees. The U.S. taxpayer is on the hook to pay back the loan. Solyndra’s fault proves a federal loan guarantee is a professional investment Nixon 11 (James-President, Global Urban Development, and President, Sustainable Economic Development Strategies “Lessons of Solyndra” http://www.sednetwork.net/archives/1446) So, one lesson from Solyndra is that the underwriting criteria for a federal loan guarantee needed to factor in the risk profile of venture investment in general, of the solar industry, and of Solyndra in particular. A second lesson is that a federal loan guarantee is a professional investment and should only be made by investment professionals with venture loan expertise. Loan guarantees is a program-related investment Brown 11 (Angela director of programs at the Hyams foundation “Program-Related Investments and Mission-Related Investments” http://www.hyamsfoundation.org/grants/pri.html) A Program-Related Investment (PRI) is an investment, rather than a grant, for a charitable purpose. It often takes the form of a loan, which is paid off within a particular timeframe. The Hyams Foundation is actively considering opportunities to make PRIs that align with one of more of its grantmaking strategies under its three major program areas as described in the grantmaking guidelines. PRIs are common in the housing arena, but the Foundation plans to explore ways to use them in all three of its funding areas. The Foundation is actively considering opportunities to make Program-Related Investments (PRIs) that align with one or more of its grantmaking strategies as described in the grantmaking guidelines and is interested in ideas for PRIs. This is another way for the foundations to support the nonprofit community. The Foundation is using the following initial screening criteria when considering potential PRIs: 1) the intended program outcomes related to one of the Foundation’s grantmaking strategies are clear; 2) the project is appropriate for PRI (debt, loan guarantee, equity, etc.) financing and meets IRS criteria for a PRI; 3) there is an identified repayment source and/or exit strategy; and 4) the applicant can show that other resources do not exist in sufficient amounts and under acceptable terms to meet the need. PRI is investment *PRI: Program-related investment Berg 12 ( Kelly partner of Tuthill & Hughes LLP “IRS issues proposed Regulations on Program-Related Investments” http://www.tuthillhughes.com/wp-content/uploads/2012/05/00048956.pdf) A program-related investment (PRI) is an investment: (1) the primary purpose of which is to accomplish one or more charitable purposes, (2) no significant purpose of which is the production of income or the appreciation of property, and (3) that is not used for lobbying or political campaign activity. An investment that qualifies as a PRI is not treated as a jeopardizing investment or a business holding for purposes of the private foundation excise taxes. In addition, a PRI is generally treated as a qualifying distribution for purposes of the private foundation minimum distribution requirements. Prior to the issuance of the new proposed regulations, the IRS regulations addressing PRIs contained ten examples that focused on domestic situations principally involving economically disadvantaged individuals and deteriorated urban areas. In response to requests from the private foundation community and the Exempt Organizations Committee of the ABA Section of Taxation, the IRS has provided nine additional examples that more clearly reflect current investment practices. Principles. The new examples illustrate several principles that will be helpful to private foundations contemplating making program-related investments: An activity conducted in a foreign country furthers a charitable purpose if the same activity would further a charitable purpose if conducted in the United States. The recipient of a PRI need not be a 501(c)(3) organization—a recipient can be a 501(c)(4) social welfare organization, a domestic or foreign business enterprise, or a domestic or foreign individual. The charitable purposes served by a PRI are not limited to situations involving economically disadvantaged individuals and deteriorated urban areas. Charitable purposes illustrated by the new examples include advancing science; combating domestic or foreign environmental deterioration; promoting the arts; educating poor farmers in a developing country about advanced agricultural methods; and constructing a child-care facility in a low-income neighborhood. A potentially high rate of return does not automatically prevent an investment from qualifying as program-related. PRIs can be achieved through a variety of financial instruments, including loans, equity investments, loans with equity “kickers”, loan guarantees, and loan guarantee deposit arrangements. Obama’s proves a loan guarantee is investment Gingrich 12 (Newt, former speaker of the house “How president Obama’s Bureaucratic investments kill jobs” http://www.humanevents.com/2012/05/30/how-president-obamas-bureaucratic-investments-kill-jobs/) By his own account and those of his surrogates, President Obama’s bureaucratic “investing” prowess is the key to turning around the economy. His efforts so far have been a disaster. The Obama Department of Energy extended a $2.1 billion “investment” -- a loan guarantee -- to green-tech company, Solar Trust of America, which declared bankruptcy last month. He lost another $530 million on Solyndra, a start-up where executives were making lucrative salaries, plus bonuses. We meet- loan guarantees enable investment in transportation infrastructure NEI 11 (Nuclear energy institute “Key facts about clean energy loan guarantees” http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFgQFjAA&url=http%3A%2F%2Fwww.nei.org%2Ffilefolder%2Floanguaranteefastfacts.pdf&ei=mc3oT6mwONOv0AGOp9DECQ&usg=AFQjCNEzvSlK0TiMZStFOzXeQDIf76vQBw&sig2=rvEqIFgdQ621ngWInnYY8g) Loan guarantees are widely and successfully used by the federal government to ensure investment in critical infrastructure. The federal government uses loan guarantees to enable investment in critical national needs, including shipbuilding, transportation infrastructure, exports of U.S. goods and services, affordable housing, and many other purposes. The federal government manages a successful loan guarantee portfolio of $1.2 trillion. Loan guarantees are a type of investment Brody, Weiser & Burns 2002 (Brody · Weiser · Burns helps complex nonprofits develop strategic and business venture plans, assists foundations with structuring and managing program-related investments and facilitates partnerships between businesses and nonprofitshelps complex nonprofits develop strategic and business venture plans, assists foundations with structuring and managing program-related investments and facilitates partnerships between businesses and nonprofits, Current Practices in Program-Related Investing by Francie Brody, Kevin McQueen, Christa Velasquez and John Weiser, 2002 http://www.brodyweiser.com/pdf/currentpracticesinpri.pdf A PRI transaction can use any type of investment instrument. A PRI can be a loan, social purpose deposit, loan guarantee, line of credit, asset purchase, equity investment, or recoverable grant. Loans are the most common PRI instrument, making up more than half of PRIs made. Some of these loans are secured by real estate, but many of them are unsecured. Directory: files files -> Answer True False 2 points Question 2 files -> Integer programming and game theory files -> 4 Integer Programming files -> Bpa vehicle Window Repair Scenario #1 task: Procure vehicle window relacement. Objective files -> Pop Warner History files -> North Carolina Inclusion Initiative Mapping Where Children with ieps are Being Served Purpose files -> Fall 2013 Spring 2014 Program Data: Standard 1 Exhibit 4d files -> Hanban – asia society confucius classrooms network 2010 request for proposal files -> Northern England’s set-jetting locations Download 1.1 Mb. Share with your friends:
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