Industrial Revenue

Business Development Revolving Loan Fund

Businesses in Cherokee County, an eligible Appalachian region county, may qualify for loan funds through the Business Development Revolving Loan Fund. The Business Development Revolving Loan Fund (RLF) is a $3 million pool that can be used in the Appalachian Region for loans to projects that create or save jobs and that:

  • Promote industrial locations or expansions
  • Encourage downtown development
  • Complement local development strategies
  • Satisfy other public purposes

Funding

Funds for the Business Development Revolving Loan Program were granted to DCA by the Appalachian Regional Commission. DCA administers the RLF but loans are made through local development authorities (LDAs). The DCA Loan Committee reviews all loan requests and sets terms for each approved loan application depending on project needs.

Eligibility Requirements

  • Loans may only be made to private, for-profit businesses, including both owner-operators and real estate developers. Lending institutions are not eligible for RLF loans
  • The loan applicant must demonstrate ability to repay the loan
  • The loan recipient must create or save at least one job for every $20,000 of RLF loan funds received
  • Business owners must arrange financing for at least 50% of the cost of their proposed project. Past investments usually are not counted toward this 50% requirement. (Note: other lending institutions may provide some or most of the money needed to meet the 50% requirement.)
  • A minimum 5% equity injection is required

Eligible Uses

  • Working capital
  • New construction and rehabilitation
  • Building acquisition
  • Equipment purchase & installation
  • Facade improvements
  • Land acquisition

Ineligible Uses

  • Speculative projects
  • Projects appropriate for 100% private sector financing
  • Assistance to businesses relocating jobs from one labor market area to another

Loan Amounts

The maximum loan amount is $200,000 per qualifying business, or 50% of total project cost, whichever is less. There is no maximum project cost and no minimum loan amount.

Loan Terms

  • Interest Rate: usually below-market rates, depending on project requirements
  • Repayment Period: up to 15 years, depending on the useful life of the assets financed with the loan
  • Collateral: usually a second mortgage on real estate

How to Apply

Businesses considering a project that may be suitable for financing through the Appalachian Business Development Revolving Loan Fund are encouraged to:

  • Meet with DCA to discuss loan requirements
  • Complete the application form and all certifications
  • Obtain the approval of your LDA, which must act as lender of RLF funds. DCA can provide assistance in the process of establishing an LDA

Applications will normally be reviewed by DCA’s loan committee within 30 days after submission of a completed application. This information is provided by the Georgia Department of Community Affairs. Correspondence should be addressed to the Georgia Department of Community Affairs, 60 Executive Park South, NE, Atlanta, Georgia 30329-2231.