Tower Lending: AgAmerica’s First Foray into the Rural Infrastructure Sector
AgAmerica Lending provides essential financing to support rural infrastructure development.
Overall, 59 percent of farm operators use smartphones. But among farmers under the age of 45, their smartphone usage increases to 91 percent. One thing is clear: data usage is steeply growing and tower erectors will need flexible funding to keep the pace.
The Challenge
Due to the niche nature of the cellular tower industry, there are few bridge lenders in the market that serve growing mid-tier cell tower developers (less than $1MM Tower Cash Flow). Conventional lenders to the industry often have restrictions on lending territories and borrower debt/covenants, and industry exposure limits. As a result, cell tower developers have typically had to rely on more expensive private equity raises to find their portfolio development.
The Solution
AgAmerica Lending uniquely understands the mid-tier tower market, having originated more than $24MM in loans since 2013. Through our wide spectrum of land loan products, our lending portfolio is now collateralized by more than 65 towers with over 85 tenants.