Areas Served: Glynn county, Georgia
The purpose of the program is to provide financing to economically disadvantage business owners or potential business owners.
The loan proceeds are to be used for the expansion of an existing business or the establishment of a new business in the Glynn County area.
ELIGIBILITY REQUIREMENTS 1. TYPE OF BUSINESS: Eligible businesses include most for-profit businesses (proprietorships, partnerships, or corporations).
2. USE OF PROCEEDS: – Land and building acquisition – Leasehold improvements/building renovations – Machinery and equipment – Inventory – Working Capital 3. REPAYMENT TERMS – Maximum five (5) to Twenty (20) years, depending on project – up to 5 years – Inventory & Working Capital – up to 10 years – Leasehold Improvements, Machinery & Equipment – up to 20 years – Land and Building Acquisition, Building Renovations 4. LOCATION Business must be located in Glynn County.
If the business is located in the City of Brunswick, additional funds may be available for loan participation from the City of Brunswick.
5. EQUITY INJECTION The borrower will be required to provide at least a minimum of ten percent (10%) on loans secured by real estate and improvements, and twenty percent (20%) on working capital and equipment loans.
The cash injection may be substituted by equity in other assets, pledged to secure the debt, on a case-by-case basis.
In no event shall 100% loans be made to a borrower, without adequate collateral.
6. MANAGEMENT The borrower must demonstrate that he or she has had management experience to manage the type of business they are expanding or starting.
Management counseling in the areas of payroll tax form preparation, financial statement preparation, marketing, etc.
will be available, should the borrower demonstrate the need for such counseling.
Training will be available through the Small Business Development Center (SBDC)and will be an eligibility requirement for all start-up businesses receiving loans through this program.
7. CREDIT HISTORY The borrower must have a satisfactory credit record, having established credit with a reputable firm and complying with the payments in a prompt manner, for at least 12 months.
For those applicants not having a satisfactory credit history at the time of the application, any judgments or outstanding balances owed, must be satisfied and an acceptable payment record must be established to demonstrate the borrower’s willingness to pay as agreed.
Any applicants that have not satisfied past due obligations will be ineligible.
8. COLLATERAL The bank will be secured by a first lien on the project assets.
Personal guarantees will be required by the borrowers and additional personal collateral may be required to secure the guarantee, at the discretion of the bank.
An appraisal may be waived for real property securing the debt, by using the most recent county tax assessor’s value for ad valorem tax purposes.
Unsecured loans are ineligible.
9. LOAN APPLICATION The borrower must complete and submit the application form designed for this program, with attachments, to the participating bank.
INELIGIBLE BUSINESSES AND USES 1. INELIGIBLE USE OF PROCEEDS – Relocating existing industry or business from one job market to another – Refinancing – Purchasing property for lease.
– Speculating – Acquiring Ownership without economic benefit 2. INELIGIBLE BUSINESSES – Non-profit businesses – Passive income or developer/landlord institutions – Lending and investment institutions – Media (newspapers, magazines, etc.
) – Hospitals – Farming and agricultural production LOAN PROGRAM FEATURES 1. LOAN AMOUNT – Minimum – $ 5,000 – Maximum – $ 50,000 ($75,000 if City participates) 2. INTEREST RATE – Maximum combined interest rate of Prime + 2%, floating – City of Brunswick’s interest rate, when participation is included, will be 3%.
Contact InformationCoastal Area District Development Authority
Address: 501 Gloucester St., Ste. 201
City: Brunswick
State: Georgia
Website:
http://www.cadda.com/facts/rlf/EdPincknFactSht.htm
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