• Oct 15, 21
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

The U.S. Department of Agriculture-Rural Development’s Intermediary Relending Program (IRP) is designed to alleviate poverty and increase economic activity and employment in rural communities with a population of less than 25,000. In April 2009, the Georgia Cities Foundation (GCF) was one of 20 organizations in 15 states selected to receive $12.7 million in loan funds through the United States Department of Agriculture – Rural Development’s Intermediary Relending Program (IRP). The purpose of the funding is to spur economic development and create or save nearly 2,000 jobs nationally. The Georgia Cities Foundation will utilize $750,000 in IRP funding through its revolving loan fund to assist in the financing of downtown projects in a 13-county area in Southwest Georgia. Service Area Downtown projects located in the following counties: Calhoun, Colquitt, Decatur, Early, Grady, Lee, Miller, Mitchell, Randolph, Seminole, Terrell, Thomas, and Worth. Eligibility Criteria GCF will accept applications from a city’s downtown development authority (DDA), who are requesting financial assistance in their efforts to revitalize and enhance their downtown areas. The ultimate recipient of GCF-IRP loan funds will typically be a private owner/developer who, without assistance from GCF might not otherwise be able to complete the project. Use of Loan Proceeds – Real estate acquisition – Building rehabilitation – New construction – Parks and green space – Financing Structure A 50-40-10 financing structure is recommended, with 50% of a project’s total cost being financed by conventional lenders (banks), 40% being financed by GCF and/or the Georgia Department of Community Affairs’ DD RLF program, and 10% being the Borrower/Ultimate Recipient’s equity participation. Loan Amounts Loans from the GCF-IRP must not exceed the lesser of $250,000 or 75% of the total cost of the ultimate recipient’s project. No more than 25% of a GCF-IRP loan may be used for loans that exceed $150,000. Loan Fees GCF does not charge application fees, origination fees, discount points, or other fees. Standard closing costs are required. Interest Rates & Loan Terms – Interest rate: Below market – Loan Term: 15 year amortization, with a 10-year term (balloon after 10 years) Collateral Requirements – The project property will be used as collateral for the GCF-IRP loan. GCF will normally take a second lien position behind the bank. – Secondary collateral may be required. – Hazard insurance equal to the value of the fixed assets is required. Special Requirements for IRP Loans – As the GCF-IRP utilizes federal funds, the Borrower/Ultimate Recipient must comply with various federal requirements including, but not limited to, the following: – Insurance and Bonding Requirements – Equal Opportunity and Nondiscrimination Requirements – Construction and Contract Procedures Contact Information Georgia Cities Foundation Address: 201 Pryor Street, SW City: Atlanta State: Georgia Website: https://www.georgiacitiesfoundation.org