Areas Served: Banks, Barrow, Bartow , Carroll, Catoosa, Chattooga, Cherokee, Dade, Dawson, Douglas, Elbert, Fannin , Floyd, Forsyth , Franklin , Gilmer , Gordon, Gwinnett, Habersham, Hall, Haralson , Hart, Heard , Jackson , Lumpkin, Madison , Murray , Paulding , Pickens, Polk, Rabun, Stephens, Towns, Union, Walker, White and Whitfield Counties
The Business Development Revolving Loan Fund (RLF) is a $3 million pool that can be used in the Appalachian Region of Georgia for loans to projects that create or save jobs and that: – Promote industrial locations or expansions; – Encourage downtown development; – Complement local development strategies; or – Satisfy other public purposes.
Eligibility Requirements:
¢ Loans may only be made to private, for-profit businesses, including both owner-operators and real estate developers.
Lending institutions are not eligible for RLF loans.
¢ The loan applicant must demonstrate ability to repay the loan.
¢ The loan recipient must create or save at least one job for every $20,000 of RLF loan funds received.
¢ Business owners must arrange financing for at least 50% of the cost of their proposed project.
Past investments usually are not counted toward this 50% requirement.
(Note: other lending institutions may provide some or most of the money needed to meet the 50% requirement.
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¢ A minimum 5% equity injection is required.
Eligible Uses:
¢ Working capital.
¢ New construction and rehabilitation.
¢ Building acquisition.
¢ Equipment purchase & installation.
¢ Facade improvements.
¢ Land acquisition.
Ineligible Uses:
¢ Speculative projects.
¢ Projects appropriate for 100% private sector financing.
¢ Assistance to businesses relocating jobs from one labor market area to another.
Loan Amounts: The maximum loan amount is $200,000 per qualifying business, or 50% of total project cost, whichever is less.
There is no maximum project cost and no minimum loan amount.
Loan Terms: – Interest Rate: usually below-market rates, depending on project requirements.
Repayment Period: up to 15 years, depending on the useful life of the assets financed with the loan.
– Collateral: usually a second mortgage on real estate.
Contact InformationGeorgia Department of Community Affairs
Address: 60 Executive Park South, N.E.
City: Atlanta
State: Georgia
Website:
http://www.dca.state.ga.us/economic/financing/programs/appregion.asp
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