Areas Served: Fannin, Dade, Walker, Catoosa, Whitfield, Murray, Gilmer, Pickens, Gordon, Chattooga, Floyd, Bartow, Polk, Paulding and Haralson Counties
The Northwest Georgia Regional Commission’s RLF is operated as a small business gap financing loan participation program seeking to achieve economic adjustment goals by leveraging job creation and private investment in the eligible area of Fannin, Dade, Walker, Catoosa, Whitfield, Murray, Gilmer, Pickens, Gordon, Chattooga, Floyd, Bartow, Polk, Paulding and Haralson Counties.
The borrower contributes at least 10% of the project cost; the private lender develops a loan proposal for up to 90% of the project cost and makes a loan commitment for an amount less the proposed RLF participation; and the RLF purchases a participation in the loan up to the lessor of 50% of the loan or $200,000 generally in a shared first lien position with the bank, but the lien position may be determined based on the project parameters.
Generally, the RLF participation is based on the participating lender’s statement of need (ie.
, given lender policy on loan percentage or term, excessive risk, lower payment needs, etc.
and but for the RLF participation, the primary loan cannot be made).
The RLF, however, can be used as an incentive, through favorable loan terms, to attract or keep a business or expansion in the area.
Proceeds from RLF loans may be used for: – business and industrial acquisitions, construction, conversion, enlargement, repair, or modernization; – purchase of land and improvements including existing buildings, facilities, materials, etc.
; – purchase of equipment, machinery, or supplies; – start up costs and working capital.
– RLF loans may include reasonable costs, including legal fees, incurred for services rendered by accountants, appraisers, architects, engineers, and other parties related to the loan or project.
RLF loans cannot be used for passive investment, for relocation which will result in job losses in the original area, to subsidize interest payments on an existing loan, to provide the equity contribution required under another Federal loan program, or generally, to refinance existing debt.
Interest rate on the RLF loan amount is 4 percentage points below the current prime rate, but not less than 4%.
The RLF loan maturity is generally the same as the participating private lender.
RLF loans have an application fee which is one-half of 1% of the RLF amount and payable by the borrower.
Other fees are as determined by the participating private lender.
The participating private lender may charge the market rate (fixed or variable) for its portion of the loan and may set a conventional maturity.
The RLF program requires that one job be created/ retained for every $10,000 in RLF financing.
The RLF program also requires that each RLF dollar leverage at least two dollars in private investment.
The standards for job creation and private investment apply to the program portfolio as a whole and may vary on a project by project basis.
Contact InformationNorthwest Georgia Certified Development Company
Address: 503 West Waugh Street
City: Dalton
State: Georgia
Website:
http://www.ngcdc.org/?page_id=4
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