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WHAT IS THE SOUTHWEST GEORGIA REVOLVING LOAN FUND? The Southwest Georgia Revolving Loan Fund is a local source of capital for businesses that are planning to start-up or to expand which will attract private investments and create permanent jobs. This program does not compete with local banks or is not a lender of last resort. The purpose of the Revolving Loan Fund is to provide gap financing between what the bank can reasonably lend and the owner can reasonably provide in equity. NO 100% DIRECT FINANCING. For every $20,000 in Revolving Loan Funds should create one full-time job. A business must also be able to attain two dollars in private investments with every one dollar from the program. The bank will maintain a 1st mortgage on 100% of the collateral. Southwest Georgia Regional Development Center will service and package the loan. Therefore, there is little or no paper work for the bank. WHAT TYPE OF BUSINESSES ARE ELIGIBLE FOR THE REVOLVING LOAN FUND? 1. Small Manufacturing Companies & Agri-businesses 2. Manufacturing related services 3. Companies that have a unique products/services or technological advance that will help to make the region more economically competitive 4. A business that may help a community in improving its economic development potential. Generally, retail businesses are not eligible. The business must be located and operated in the following counties: Baker, Calhoun, Colquitt, Decatur, Dougherty, Early, Grady, Lee, Miller, Mitchell, Seminole, Terrell, Thomas, Worth. The lending institution must also be located in the above-mentioned counties. Along with an application for the program, an applicant must have a business plan. The University of Georgia Small Business Development Center in Albany. UGA Small Business Development Center 230 S. Jackson, Suite 333 Albany, Ga. 31701 (229) 420-1144 Also, the UGA Small Business Development Center does offer courses on how to start a business and other business-related courses for a small fee. THE LOAN CAN BE USED TO: 1. Purchase Land and Building 2. Construct a New Building or renovate an existing building 3. Purchase Machinery& Equipment 4. Provide Permanent Working Capital LOAN AMOUNT The amount from the revolving loan fund range from $40,000 to $125,000. LOAN STRUCTURE The loan for the total project cost is allocated in the following manners: (1) The bank will finance a minimum 56.7% percent of the total project cost. (2) The revolving loan fund program can only finance up to 33.3% percent of the total project cost. (3) The borrower must contribute a minimum of 10% percent in cash or equity. Revolving Loan Funds cannot exceed the funds from the bank and/or the borrower. TERMS AND CONDITIONS FOR THE REVOLVING LOAN FUND 1. The term for the Revolving Loan Fund is up to 10 years. 2. The interest rate on the Revolving Loan Fund is fixed at prime rate. 3. Balloon payments are not permitted on the bank portion of the project cost without prior approval. 4. The borrower and the bank can negotiate the terms and interest rate on the bank loan. IF YOU ARE INTERESTING IN THE SOUTHWEST GEORGIA REVOLVING LOAN FUND Please fill out the following information and email to economicdevelopment@swgrdc.org: Name: Mailing: City: State: Zip Code: What type of business do you want to start: Have you contacted a local bank about your project: Yes No If yes, what is the name of the bank: Name of Bank |
