Areas Served: Bryan, Bulloch, Camden, Chatham, Effingham, Glynn, Liberty, Long and McIntosh, Georgia
The purpose of the RLF is to provide credit enhancement to participating banks to facilitate the financing of business and industry in the nine-county Georgia region served by the Coastal Area District Development Authority (CADDA) resulting in a positive economic impact through the creation and retention of jobs.
ELIGIBILITY ELIGIBLE Uses of Loan Proceeds -Land and improvements -Renovation of existing structure -Machinery and equipment -Leasehold improvements -Working capital INELIGIBLE USE OF LOAN PROCEEDS -Business relocation -Speculating -Refinancing -Acquiring Ownership -Purchasing property for lease Loan-TO-VALUE Real estate and improvements – up to 90% of cost or market value, whichever is less.
Machinery and equipment – up to 80% of cost or market value, whichever is less.
Working Capital – margins to be determined on a case-by-case basis.
Type of Business Eligible businesses include most for-profit businesses.
The industrial development authorities of the CADDA’s service area may also 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 -Media (newspapers, magazines, etc.
) -Passive income or developer/landlord institutions -Hospitals -Lending and investment institutions -Farming and agricultural production Job Creation One permanent job should be created or retained per $20,000 of CADDA funds loaned.
If fewer jobs are created/retained, the project must demonstrate a high positive economic impact acceptable to CADDA.
LOAN PROGRAM REQUIREMENTS – Cash Flow -The business’ adjusted or projected cash flow must be adequate to service the entire debt.
– Credit History -The business and its principal(s) must have satisfactory history of meeting debt obligations in a timely manner.
– Management -The company must have experienced management to successfully operate.
– Source of Funds The funds needed to finance the project are provided by the Private Lender (bank), CADDA and the Borrower (SBC).
– Location -The project must be located within the nine Coastal Georgia counties of Bryan, Bulloch, Camden, Chatham, Effingham, Glynn, Liberty, Long and McIntosh.
– Collateral and Participation Position -CADDA generally shares the collateral on a shared pro-rata basis with the private lender.
CADDA will consider a subordinated lien if no other lender is available.
Unsecured loans are ineligible.
Insurance Hazard insurance must equal the value of the assets pledged.
If collateral pledged is located in a Special Hazard Area subject to flood, mudslides, erosions or earthquakes, as determined by a qualified specialist, the proper insurance coverage will be required.
Life insurance policies and assignments are required on principal(s) equal to CADDA’s portions of a subordinated loan and may be required on a shared lien loan.
In all cases, where management is key to the business’ survival, the life insurance will be required.
FEES -Legal fees and closing costs are the responsibility of the borrower.
Contact InformationCoastal Area District Development Authority
Address: 501 Gloucester St., Ste. 201
City: Brunswick
State: Georgia
Website:
http://www.cadda.com/facts/rlf/coffer.htm
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