Business - Loan Programs

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Loan Programs

ECONOMIC DEVELOPMENT LOAN PROGRAM

HISTORY

The Economic Development Loan Fund was created to reduce the historically high unemployment rate and low per capita income of Augusta-Richmond County. Loans are provided to for-profit businesses to finance development projects, establish new businesses and/or expansion of existing businesses. These funds may also be used to create employment opportunities and/or retain existing jobs for low and moderate-income persons.

The Re-Captured Urban Development Action Grant Loan Funds are used to assist severely distressed large and small cities containing pockets of poverty in alleviating economic deterioration by means of increasing public and private investment in order to aid in economic recovery to strengthen the economics, employment and tax bases of distressed cities.

FUNDING SOURCE

Funding is provided by Community Development Block Grant (CDBG) Funds through the United States Department of Housing and Urban Development.

MAJOR GOALS AND OBJECTIVES

Create new permanent jobs for low and moderate income persons by providing low interest loans to small and minority businesses
Increase the per capita income and tax base of Augusta-Richmond County
Encourage private and public investment that will expand local business activity
Re-develop and/or recycle blighted or vacant land and facilities
Assist businesses owned and/or operated by women, minorities, or persons economically or socially disadvantaged

TYPES OF LOANS

Economic Development Loan

Loan Amount: $5,000 - $25,000
Interest Rate: Treasury-Bill Rate
Repayment: Up to 7 years
Owner’s Equity: 20% requirement on start-up businesses

Micro Loan Fund

Loan Amount: Up to $5,000
Interest Rate: 3%
Repayment: Up to 3 years

USE OF LOAN PROCEEDS

Business acquisition, construction, conversion, enlargement, repair, modernization, or development cost
Purchasing and development of land, easements, rights-of-way, buildings, facilities, leases, or materials
Purchasing of equipment, leasehold improvements, machinery, or supplies
Pollution control and abatement
Transportation services
Start up operating costs, working capital
Feasibility studies
Reasonable fees and charges

ELIGIBLE LOAN RECIPIENTS

Generally any for profit corporation, partnership or sole proprietorship. This description shall include, but not limited to the following:

Credit worthy, commercial and industrial property owners or tenants who are able to document the need for ARCEDLF or Re-Captured UDAG Funds
For-profit institutions, excluding religious or religious sponsored institutions
Start-ups of small businesses with a minimum of 20% cash equity injection

INELIGIBLE LOAN PURPOSES

Loan proceeds may not be used for the following:

For the transfer of ownership unless the loan will keep the business from closing or prevent the loss of employment opportunities
For community antenna television services or facilities
For a legitimate business activity when more than 10 percent of the annual gross revenue is derived from legalized gambling activity
For any illegal activity
For any hotels, motels, tourist homes, or convention centers
For any transit, recreation, or amusement centers
For any eligible project that is in violation of either a Federal, State, or Local environmental protection law or regulation

QUALIFYING FACTORS

Must be a HUD-eligible activity
Must create new permanent, full-time jobs for low and moderate income persons
Must evidence a financing gap (need for financing)
Must demonstrate ability to repay as agreed
Must have a good personal and business credit history
Must have good character
Must show the ability to successfully operate a business
Must not have local, state, or federal tax liens or back taxes due
Must provide sufficient collateral to protect the interest of Augusta-Richmond County

For more information contact Henry Holt
Phone (706)821-1797