WASHINGTON, 14 March 2014. The NextGen GA Fund has entered into partnership agreements with Pilot Bank and Madison Capital to accelerate the rollout of the FAA’s NextGen by providing access to quick and affordable financial assistance to general aviation aircraft owners.
The NextGen GA Fund will finance FAA-approved NextGen avionics, including WAAS-capable GPS, ADS-B In, ADS-B Out, RNAV/RNP avionics, data communications, flat-panel displays, antennas, electronic components, and instrument panel modifications, along with related installation and certification costs.
Madison Capital and Pilot Bank has experience serving general aviation aircraft owners and operators, and the NextGen GA Fund is gearing up to approve tens of thousands of financial offers over the next few years, officials say.
The NextGen GA Fund is a public-private partnership formed between the U.S. Government, the aerospace industry, and the private-sector investment community. Congress enacted this program by authorizing federal loan guarantees for NextGen aircraft equipage in Section 221 of the Federal Aviation Administration Reauthorization Act of 2012.
The NextGen GA Fund will initially bring approximately $550 million of financing capital, eventually supporting some $1.3 billion in recurring financings, to the general aviation sector over the coming years. The NextGen GA Fund estimates that this will enable the retrofit of tens of thousands of general aviation aircraft. The NextGen GA Fund is awaiting FAA approval of its application for federal loan guarantees.
Facilitated through the Aircraft Electronics Association (AEA) and a special AEA web portal available later this spring, member repair stations will be able to refer customers to the NextGen GA Fund and to applicant processors Pilot Bank and Madison Capital. The application process will be highly streamlined to quickly help aircraft owners with accomplishing their NextGen upgrades for many of the 157,000 general aviation aircraft that are in use today in the U.S.
AEA announced its partnership with the NextGen GA Fund on 13 January 2014.
“The NextGen GA Fund will help customers of AEA member repair shops move forward with the January 1, 2020, ADS-B equipage mandate,” says Paula Derks, AEA president. “It also will bring substantial private-sector capital to help pilots and aircraft owners overcome financial challenges to completing these safety-enhancing installations.”
“The general aviation community, from single engine piston aircraft owners to Part 135 turbine operators, will need to meet NextGen equipage requirements,” says Russ Chew, general partner of the NextGen GA Fund. “We know that tens of thousands of GA aircraft will need to equip to ensure their uninterrupted access to U.S.-controlled airspace as of January 1, 2020. Because of the limited number of FAA-certified installation facilities, the NextGen GA Fund is here to incentivize equipage now so that all GA aircraft will have the opportunity to install the required NextGen upgrades before the FAA deadline.”