Areas Served: Atkinson, Bacon, Ben Hill, Berrien, Brantley, Brooks, Charlton, Clinch, Coffee, Cook, Echols, Irwin, Lanier, Lowndes, Pierce, Tift, Turner, and Ware counties, Georgia
The purpose of the EDA Revolving Loan Fund is to finance small businesses in the eighteen-county region served by the Southern Georgia Regional Commission (SGRC) in order to create or retain jobs in the region.
The RLF is also used to finance business facilities that cannot otherwise receive credit from a private lending institution.
ELIGIBILITY Use of Loan Proceeds – Land acquisition – Machinery & equipment – Construction – Working capital – Renovation of existing structure – Professional fees Loan Amount Up to 50% of the eligible project cost not to exceed the maximum amount of funds is $500,000 per borrower.
Type of Business Eligible businesses include for-profit businesses (individual proprietorships, partnerships, or corporations).
The industrial development authorities of the SGRC’s service area can borrow RLF funds if the funds are used to acquire fixed assets for an industry committed to locate in the region.
Ineligible businesses include: non-profit businesses, passive income or developer/landlord deals, lending and investment institutions, media (newspapers, magazines, etc.
), medical facilities, farming and agricultural projects.
LOAN PROGRAM PROCEDURE Approval, Closing, and Servicing The loan application is prepared by the SGRC staff and is submitted to the SGRC Loan Board for approval.
After the RLF funds have been approved, the SGRC will close the loan in conjunction with the private lender.
Loan servicing is generally done by the SGRC.
LOAN PROGRAM FEATURES Interest Rate Interest rate on the SGRC’s portion of the loan is generally at or below market rate.
Interest is charged only on the unpaid balance of the principal and for the actual time used.
The bank sets the rate of interest on their portion of the loan.
The rate on the SGRC portion may be fixed or variable.
Repayment Schedule – Real estate – up to a 20 year term.
– Machinery and equipment – up to a 10 year term.
– Working capital – up to a 5 year term.
Benefits – SGRC prepares the majority of the paperwork for the business.
– Businesses obtain loans which are not otherwise available.
– Lower interest rates.
LOAN PROGRAM REQUIREMENTS Cash Flow Borrower’s adjusted cash flow must be adequate to service the entire debt.
Credit History Borrower must have satisfactory history of meeting debt obligations in a timely manner.
Management Borrower must demonstrate to the SGRC that it has experienced and adequate management to operate the company successfully.
Location The project must be located within the eighteen Southern Georgia counties of Atkinson, Bacon, Ben Hill, Berrien, Brantley, Brooks, Charlton, Clinch, Coffee, Cook, Echols, Irwin, Lanier, Lowndes, Pierce, Tift, Turner, or Ware.
Collateral and Participation Position The SGRC generally shares the collateral on a pro-rata basis with the private lender.
The private lender must be willing to participate with the SGRC for up to 50% of the loan amount
Contact InformationSouthern Georgia Regional Commission
Address: 327 West Savannah Ave
City: Valdosta
State: Georgia
Website:
http://www.sgrdc.com/LoansDept/edarlfloan.htm
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