Out-of-the-box Grant Programs
Many of us in business know what we have been doing for years. Our businesses grow and we keep doing what made us the success that we are. Then we seem to hit that plateau that we have done all that we can do to grow and bring in additional funds to our bottom line. However, have we? Have you explored the possibilities with Government Grant programs?
The Federal Government has two programs that could be of interest to those in the Luxury Ground Transportation Industry. Both programs have been in place for years, but many in passenger transportation are not aware of them.
The first is a Federal Grant program administered by most States that is known as the 5311(f) program. This program is meant to provide scheduled transportation service from rural areas to urban areas. For many companies with smaller vehicles, this would be a great program to put those vehicles into service on a daily basis. Most States will have a call for projects yearly in the Summer to early Fall. Each program will vary by State, so it will be important to follow up with your particular State. However, in some cases, the Federal Grant, administered by the State, will cover Capital Costs such as vehicle purchases, or Administrative Costs, such as the actual operation of the route. In some States, the Federal Grant is act provided by both. As mentioned, the program is meant to provide scheduled service from rural areas of a state to urban areas, however, it cannot be used strictly for airport or commuter service. The route must make a meaningful connection with an Intercity Bus Company (i.e. Greyhound Bus Lines, as an example) first. If it makes that meaningful connection, then it is possible to have that route also make a stop at the airport of the urban city, after that meaningful connection is made. If that meaningful connection happens at the time when many commuters are also making their way to work, that is all the better for your organization. Although the route runs during commuter time schedules, it is still not allowed to be advertised as a commuter route.
A meaningful connection with an Intercity Bus Company is one where your company would drop passengers at the Bus Company’s Urban Terminal so they could transfer to the Intercity Bus to travel further across the United States. Intercity Bus Travel has been growing over the past few years, with the addition of WiFi, electrical plugs to charge devices and other amenities. According to the American Bus Association, 16% of the 604 million passenger trips in 2014 were on scheduled service, and it is growing. The Federal Government realizes that the Intercity Bus Carries cannot service the rural areas as they once did, and so this grant was created.
Whether the grant is used for Capital or Operating expenses, it should be pointed out this grant is meant for reimbursement of expenses, so the company must spend the money, first, to get it back afterward. That being said, again, depending on the State, it is possible for the grant could cover up to 100% of the costs incurred.
More information on this program can be found at the United States Government website, www.FTA.DOT.GOV. In the search box on the upper right hand side of the website, type in “5311(f)” and the corresponding information will display.
Another Grant Program that companies who have highway motorcoaches in their fleet is known as the Bus Security Grant program. Since many in the Luxury Ground Transportation Industry have moved into adding highway motorcoaches into their fleets, company owners should be aware of this grant program as well. This grant program is meant to add security measure to companies, such as GPS Tracking Devices, Fencing of lots, Building and Lot Camera Security, additional parking lot lighting and other security features. As it has sadly been proven in other countries, buses can be used by terrorists in destructive ways. The Bus Security Grant program has been administered through Homeland Security with hopes of securing vehicles that transport large numbers of passengers into large urban areas around the country. For the last 3 years there has been over 9 million grant dollars distributed to bus companies. These grant applications tend to take place in the Spring, with approval for purchases starting in the Fall. Information can be found through the American Bus Association as well as the United Motorcoach Association. There are many consultants in the ground passenger transportation industry who can also provide information, direction and service with both of these grant programs.
There are other Governmental Contracting areas as well, and Chauffer Driven will be exploring those in future issues. For now, look into these possible Grant Opportunities for your company.