Three Ways to Prepare Now for Your CARES Act Airport Grant
How will you spend cares act funds at your airport?
What expenses are most critical?
FAA is beginning to process grants directly to sponsors, and State Block Grant Programs won’t be far behind.
For many, payroll and basic maintenance need the most support. For others, considering other eligible projects may be the best option. For these grants, any allowable airport expenses, per the FAA’s Revenue Use Policy, is eligible under this grant.
Non-development grants are being prioritized with a streamlined application system utilizing SF-424 forms. Relief to airports’ operational budgets right now are paramount.
Development projects traditionally funded with Airport Improvement Program (AIP) funds - such as planning, design, and land acquisition, equipment, and construction projects - are able to be funded with this CARES Act grant and require additional coordination with your FAA or State Block Grant Program manager. Standard clauses and conditions, including environmental, Disadvantaged Business Enterprise, Buy American, Davis-Bacon, and others as applicable will apply to development projects funded under the CARES Act.
The FAA is using the term expeditiously in reference to their timeline in awarding CARES Act grants. And that is great news for airports.
three ways to proactively prepare to accept your Cares act grant
1. Set the sponsor approval timeline now and draft a resolution
Don’t wait until your FAA or State Block Grant program manager contacts you with their timeline to execute the grant – plan out your sponsor’s approval timeline now and ensure the grant acceptance is on the agenda for approval at the next meeting.
Request pre-approval to accept the grant award at the sponsor’s next meeting, whether that’s the airport authority or advisory committee level or directly at the airport sponsor – city or county – level. Consider calling a special meeting if it makes sense for the timeline and need for funds.
You’re in luck! We’ve drafted a free sample resolution to use in requesting advance approval for your CARES Act grant. Edit it, send over to your attorney for review, and include it on your next meeting agenda.
2. Plan out a project list and budget for initial expenditures of the grant funds
What’s the bare minimum grant support for operations and maintenance?
Expenses can be retroactive to 20 January 2020 for any allowable airport operations and maintenance items. What have you already made payment on to be reimbursed?
Funds won’t expire for four years (SBGP contracts may be less, but could get an extension if needed for up to four years).
There is no local match requirement for these expenditures.
Is there a training or other course you were hoping to take this Spring or Summer that’s been canceled or postponed? Can you reallocate expenses that aren’t being incurred – conferences, for example – to free up additional funds for operations?
Is there a way to reallocate capital or equipment funds budgets so other operations and maintenance budgets are shored up?
Don’t freestyle this process - plan it out strategically for at least six months to be most mindful. What expenses have already been paid that could be recouped by the grant? What upcoming annual fees - like AWOS or ASOS maintenance subscription, for example - will be due soon?
Maximize your CARES Act grant budget and make it work in your best favor.
3. Determine who will manage and how the expenses will be documented
Document your expenses with a future audit trail in mind.
If possible and feasible, create a new, separate account for CARES Act expenditures to make it easy to produce the documentation. Establish a file naming structure if you don’t already have one.
FAA will receive pay requests via existing Delphi system with the same process as AIP grant draws. Expenditures are not required to be incurred prior to receipt of funds, so all the more reason to plan ahead.
It’s anticipated that State Block Grant Programs also will utilize existing pay request processes and documentation policies.
Spend these funds expeditiously with as much documentation as possible. This will make for a seamless audit next year!
Here’s a great FY2020 bonus:
Capital and development projects funded with regular AIP and Supplemental Discretionary AIP in Federal Fiscal Year 2020 (with FY2020 funds) will be amended to 100% federal funds if already awarded, and executed as 100% federal funds in future AIP grants through the balance of FY2020.
This grant amount is completely separate from the CARES Act general aviation airport grants discussed above.
FAA has not yet published guidance on this yet, but expects to soon. They truly have worked at the speed of sound to implement the CARES Act requirements and should be applauded for their commitment to general aviation airport relief.
If you’re considering how to ready your airport for economic recovery while still being of service to your tenants and partners in the best ways possible, we invite you to consider our
Small Airport Strategic Planning Virtual Workshop
for the best blend of expert guidance, coaching, and collaboration with like-minded airport operators, in a small group setting, meeting virtually just a couple of hours per week for a month.
In this workshop, you’ll be guided to develop:
new or updated Mission, Vision, and Values (MVV) for your airport - the foundational first step to goal setting
Strengths, Weakness, Opportunities, and Threats (SWOT) analysis, complete with brainstorming exercises
thorough priorities assessment to consider the entirety of the airport and community
critical goal setting - what’s relevant, realistic, and actionable - and the initiatives that serve it
a completed Airport Flight Plan to guide your daily, monthly, quarterly goals
options for measurement and reporting to keep yourself on track
We invite you to learn more here: