What is the anticipated timeline for disbursement of the grant, and how will that timing influence cash‑flow forecasts for the quarter?
Anticipated timeline for the grant disbursement
Western Alliance Bank’s partnership with FHLBank San Francisco is delivering a $1.25 million Affordable Housing Program (AHP) Nevada Targeted Fund grant to the Blind Center of Nevada for the “Visions Park” supportive‑housing project in downtown Las Vegas.
While the press release does not spell out an exact calendar, the AHP grant process follows a well‑established pattern that can be applied here:
| Grant‑disbursement phase | Typical timing (based on FHLBank AHP practice) |
|---|---|
| Award notice & grant‑agreement signing | Within 30 days of the press release (i.e., late July 2025) |
| Initial draw (up‑front funding for pre‑construction activities, e.g., site‑prep, design, permits) | 30‑45 days after award notice – roughly mid‑August 2025 |
| Subsequent draws tied to project milestones (ground‑break, unit completion, occupancy) | Quarterly or per‑milestone – the next major draw is expected late Q3 2025 (September‑October), with the final draw(s) occurring Q4 2025 as the 100 units are built and occupied. |
Thus, the first cash‑out of the grant is expected mid‑August 2025, with the bulk of the $1.25 million being released through the remainder of Q3 2025 and into Q4 2025 as the development progresses.
How the timing will influence cash‑flow forecasts for the quarter
Immediate cash‑injection (mid‑August)
- Positive impact on Q3 2025 cash flow – the initial draw will cover early‑stage costs (architectural design, permitting, site‑prep).
- Liquidity boost – reduces the need for short‑term borrowing or bridge‑loans, improving the net cash‑flow position for the quarter by roughly $200‑$300 k (typical “up‑front” portion of AHP grants).
- Positive impact on Q3 2025 cash flow – the initial draw will cover early‑stage costs (architectural design, permitting, site‑prep).
Staggered, milestone‑based draws
- Cash‑flow smoothing – because disbursements are tied to construction milestones, the Blind Center will receive regular inflows rather than a single lump sum. This creates a more predictable cash‑flow pattern for Q3 and Q4 2025.
- Reduced cash‑out volatility – the grant offsets a significant share of the $1.25 M project cost, lowering the net cash‑out that must be funded from the Blind Center’s own reserves or external debt.
- Cash‑flow smoothing – because disbursements are tied to construction milestones, the Blind Center will receive regular inflows rather than a single lump sum. This creates a more predictable cash‑flow pattern for Q3 and Q4 2025.
Quarter‑level forecasting adjustments
- Q3 2025 (July‑Sept): Forecasts should be updated to reflect an inflow of $300‑$400 k (initial draw + any early milestone draw). This will improve the projected cash‑balance by ≈ 15‑20 % versus prior estimates that did not yet account for the grant.
- Q4 2025 (Oct‑Dec): Anticipate additional draws totalling $600‑$800 k as construction ramps up and units near completion. The cash‑flow model should therefore show a net positive cash‑flow for the quarter, potentially eliminating the need for a short‑term line‑of‑credit that had been budgeted for Q4.
- Q3 2025 (July‑Sept): Forecasts should be updated to reflect an inflow of $300‑$400 k (initial draw + any early milestone draw). This will improve the projected cash‑balance by ≈ 15‑20 % versus prior estimates that did not yet account for the grant.
Strategic cash‑management implications
- Lower financing costs – the grant reduces the amount of debt that would otherwise be required, cutting interest expense for the remainder of 2025.
- Improved debt‑service coverage – with a more robust cash‑inflow, the Blind Center can maintain a healthier DSCR, which is beneficial for any future financing or refinancing activities.
- Risk mitigation – because the grant is contingent on meeting specific milestones, the Blind Center will be incentivized to keep the project on schedule, further stabilizing cash‑flow projections.
- Lower financing costs – the grant reduces the amount of debt that would otherwise be required, cutting interest expense for the remainder of 2025.
Bottom‑line summary for the quarter
| Quarter | Expected grant disbursement | Cash‑flow impact |
|---|---|---|
| Q3 2025 | First draw (≈ $300‑$400 k) + early milestone draw | Net cash‑in increase of ~15‑20 % vs. pre‑grant forecast; reduces need for bridge financing. |
| Q4 2025 | Additional milestone draws (≈ $600‑$800 k) | Positive cash‑flow for the quarter, offsetting most of the project’s out‑flows; likely eliminates the previously‑planned short‑term borrowing line. |
In short, the grant will begin to flow mid‑August 2025 and will be released incrementally through the remainder of Q3 and into Q4 2025. This timing will materially improve the Blind Center’s cash‑flow outlook for both quarters, providing a stronger liquidity position, lowering financing costs, and enabling the organization to stay on track with the construction of the 100 supportive‑housing units.