2021 Georgia Agribusiness and Rural Jobs Act report : GARJA.

GARJA
2021 Annual Georgia Agribusiness and Rural Jobs Act Report

Table of Contents
Overview Page 2 Accomplishments Page 3
Summary Page 4 GARJA's Certified Capital Page 5
Received GARJA's Certified Capital Page 5
Deployed Total
Reporting Status Schedule of Page 5 Tax Credits Granted
Qualified Investments in Eligible Page 6 - 7 Business
Location and Industry Sector of Page 8 - 9 Companies Receiving GARJA Investments Pie Chart of Investments by Page 10 Industry Sector
Map of Investment Activity Page 11 in Georgia
1

Overview
Senate Bill 133, known as the "Georgia Agribusiness and Rural Jobs Act" (GARJA), was approved by the Georgia General Assembly during the 2017 legislative session, and subsequently signed into law by then Governor Nathan Deal. The GARJA Program is administered by the Georgia Department of Community Affairs (DCA). Requirements of GARJA are outlined in Section 33-1-25 of Chapter 1 of Title 33 of the Official Code of Georgia annotated.
GARJA is intended to provide access to capital for Georgia businesses in some of the State's most rural areas. A rural area means any county in Georgia that has a population of less than 50,000. Eligible businesses must have less than 250 employees with their principal business operation in one or more rural areas. The business must be in an eligible industry sector including agricultural, manufacturing, health care, technology or transportation.
DCA approved five Rural Funds (entities created by private companies) in June 2018 to participate in the GARJA Program. $100 million was certified by DCA in capital investment authority among the five Rural Funds. Each Rural Fund received approval of $20 million in capital investment authority, which was required to be used for loans or equity investments to eligible small businesses by June 30, 2020. The Rural Funds must maintain qualified investments equal to 100 percent of their capital investments for an additional three years until June 30, 2023. Please refer to Page 5 for GARJA's Certified Capital Received and Annual Reporting Status.
The Rural Funds raised capital from rural investors in exchange for tax credits earned against a rural investor's state tax liability. Amount of the credit claimed by a rural investor cannot exceed the amount of such entity's state tax liability for the tax year for which the credit is claimed. Also, at least 50 percent of the capital raised by the Rural Funds was composed of capital from sources other than the amount of capital received from the tax credit investors. Please refer to Page 5 for the Schedule of Tax Credits Granted.
The purpose of this publication is to summarize the information provided on the Annual Reports submitted by all Rural Funds for 2021 and provide supplemental information to the 2020 Initial Georgia Agribusiness and Rural Jobs Act Report on the initial deployment of their collective $100 million in capital investments.
2

Accomplishments
As of December 31, 2021, the five Rural Funds deployed a total of 44 investments for a total of $103,965,000 in 24 counties in four out of five eligible industry sectors. Together, they have created 660 jobs and retained 742 jobs with these investments. Please see Page 6 -7 for the Qualified Investments in Eligible Businesses.

#

Rural

Inv

Fund

Term Loan

4 Appalachian Fund I, LLC

18

Enhanced Capital Georgia Rural Fund, LLC

7

Georgia Rural Investment Fund, LLC

6

Southeast Community Development Fund X, LLC

9

Stonehenge Georgia Rural Fund, LLC

44

*Number of Counties

$18,000,000 $21,190,000 $13,715,000 $18,799,980 $20,950,000 $92,654,980

LOC $7,150,000 $7,150,000

Equity
$2,000,000 $200,000

Total Investment
$20,000,000

Jobs Created (Actual)
53

Jobs Retained (Actual)
282

# of Co.*
3

$21,390,000

185

178

10

$210,000

$21,075,000

200

102

5

$1,200,020 $20,000,000

156

21

6

$550,000

$21,500,000

66

$4,160,020 $103,965,000

660

159

7

742

3

Summary

Challenges
Investments in the technology industry are still particularly challenging since the Rural Funds receive very few inquiries from technology companies. Technology companies are typically difficult to underwrite since they tend to be start-ups or early-stage companies with little to no collateral. A current challenge for the Rural Funds is having enough available in revolving loan funds to assist in financing for small businesses that are referred to them for GARJA assistance.
Successes
DCA determined the Rural Funds deployed the initial $100 million of capital investments in compliance with the rules and regulations of the program. DCA continues to determine annual compliance with the rules and regulations through review of annual reports and submission of reports on each new investment made by the Rural Funds. As of December 31, 2021, all Rural Funds remain in compliance with GARJA rules and regulations.

Four of five of the targeted industry sectors had significant job

creation. Please refer to Page 8-9 for the Location and Industry

Sector of Eligible Businesses Receiving GARJA Investments

Holton Cattle:

along with the Pie Chart of Investments by Industry Sector on

A sign of GARJA success

page 10 and a Map of Investment Activity in Georgia on page 11.

DCA observed initially that almost all the GARJA investments were first lien investments with turn-down letters from local

Lane Holton (above) and his family, the team behind Holton Cattle and Consulting, raised cattle for more than 40

banks. Without the advantage of the GARJA Program, these small years before shifting to only

businesses would not have been able to secure any

provide consulting services due

financing. The Rural Funds were able to provide affordable,

to the great recession.

patient capital at reasonable rates. For the year ending Decem- Even with the economy re-

ber 2021, DCA observed that several of the investments were fol- covering and capital improving,

low-on financing for initial investments made for expansion needs, rural growth capital was stunt-

signaling the success of businesses receiving GARJA funding.

ed and the family wasn't able

to restart their "owned cattle"

business.

Recently, the Holton family,

A DCA website is available to view along with the contact information of the Rural Funds.

through the Mitchell County Economic Development team, approached Stonehenge Cap-

https://www.dca.ga.gov/community-economic-development/ incentive-programs/georgia-agribusiness-rural-jobs-act

ital to return to cattle raising, smooth out consulting volatility and increase company margins.

The website has been helpful to market to all development

Stonehenege has since invested senior debt and equity to help

authorities and professional economic developers throughout the company reach its former

Georgia.

glory.

4

GARJA's Certified Capital Received and Annual Reporting Status

GARJA Rural Fund Appalachian Fund I, LLC

Amount of Certified Capital received
$20,000,000

Total amount of certified capital
deployed *
$20,000,000

Annual Reporting In compliance

Enhanced Capital Georgia Rural Fund, LLC
Georgia Rural Investment Fund, L.L.C.
Southeast Community Development Fund X, L.L.C.
Stonehenge GA Rural Fund, LLC
Total Invested in GARJA

$20,000,000 $20,000,000 $20,000,000 $20,000,000 $100,000,000

$21,390,000 $21,075,000 $20,000,000 $21,500,000 $103,965,000

In compliance In compliance In compliance In compliance

*Total includes recycled funds

Schedule of Tax Credits Granted

GARJA Rural Fund

Tax credits authorized 2020 Tax credits authorized 2021

Appalachian Fund I, LLC

$3,000,000

$3,000,000

Enhanced Capital Georgia Rural Fund, LLC
Georgia Rural Investment Fund, L.L.C.
Southeast Community Development Fund X, L.L.C.
Stonehenge GA Rural Fund, LLC

$3,000,000 $3,000,000 $3,000,000 $3,000,000

$3,000,000 $3,000,000 $3,000,000 $3,000,000

Total tax credits authorized annually

$15,000,000

$15,000,000

5

Qualified Investments in Eligible Businesses

GARJA Rural Fund

Investment Date

Name of business

Appalachian Fund I, LLC

12/31/2019

Eagle Railcar Services

Appalachian Fund I, LLC

12/31/2019

Elixir Extrusions, LLC

Appalachian Fund I, LLC

6/17/2020

FarmGrowth Management Services, LLC

Appalachian Fund I, LLC

6/17/2020

Gordon Switching Company

Amount of Certified Capital invested

Enhanced Capital Georgia Rural Fund, LLC

12/12/2018

Blackdirt Farm Management, LLC

Enhanced Capital Georgia Rural Fund, LLC

10/30/2019

Blackdirt Farm Management, LLC

Enhanced Capital Georgia Rural Fund, LLC

5/20/2020

Blackdirt Farm Management, LLC

Enhanced Capital Georgia Rural Fund, LLC

1/7/2019

Cabinet Concepts

Enhanced Capital Georgia Rural Fund, LLC

7/2/2019

Cabinet Concepts

Enhanced Capital Georgia Rural Fund, LLC

4/10/2020

Cornucopia Farms Avera, LLC

Enhanced Capital Georgia Rural Fund, LLC

11/8/2021

Cornucopia Farms Avera, LLC

Enhanced Capital Georgia Rural Fund, LLC

4/30/2020

Habersham Vinters, Inc.

Enhanced Capital Georgia Rural Fund, LLC

2/21/2020

Highline Structures, LLC

Enhanced Capital Georgia Rural Fund, LLC

4/17/2019

Horton Cargo Haulers, LLC

Enhanced Capital Georgia Rural Fund, LLC

3/8/2019

Keith Griffin Farms

Enhanced Capital Georgia Rural Fund, LLC

12/7/2021

Keith Griffin Farms

Enhanced Capital Georgia Rural Fund, LLC

4/10/2020

Lake Country Brewing, LLC

Enhanced Capital Georgia Rural Fund, LLC

9/17/2018

Luther Griffin Farm

Enhanced Capital Georgia Rural Fund, LLC

6/4/2020

Luther Griffin Farm

Enhanced Capital Georgia Rural Fund, LLC

12/12/2019

Second Century AG, LLC

Enhanced Capital Georgia Rural Fund, LLC

3/29/2019

Soap Creek Marina & Resort, LLC

Enhanced Capital Georgia Rural Fund, LLC

3/20/2020

White Oak Pastures, Inc.

Amount of Certified Capital invested

Georgia Rural Investment Fund, L.L.C.

5/15/2019

Bhugesh Investments, LLC

Georgia Rural Investment Fund, L.L.C.

5/15/2020

Bhugesh Investments, LLC

Georgia Rural Investment Fund, L.L.C.

11/9/2020

Check-Mate Manufacturing, LLC

Amount of capital invested $6,500,000 $6,500,000 $2,000,000 $5,000,000
$20,000,000 $2,000,000 $587,850 $500,000 $1,500,000 $325,000 $345,000 $60,000 $800,000 $1,500,000 $2,000,000 $1,800,000 $250,000 $250,000 $3,800,000 $1,072,150 $3,000,000 $1,000,000 $600,000
$21,390,000 $2,960,000 $2,300,000 $800,000

6

Qualified Investments in Eligible Businesses

GARJA Rural Fund

Investment Date

Name of business

Georgia Rural Investment Fund, L.L.C.

5/29/2019

Georgia Earth and Pipe, LLC

Georgia Rural Investment Fund, L.L.C.

6/25/2019

Hellman-Chang, LLC

Georgia Rural Investment Fund, L.L.C.

4/9/2020

Revive Milling, LLC

Georgia Rural Investment Fund, L.L.C.

12/27/2019

Soteria Solar Services, LLC

Amount of Certified Capital invested

Southeast Community Development Fund X, L.L.C.

8/21/2019

1115 Smith OpCo LLC

Southeast Community Development Fund X, L.L.C.

6/17/2020

Cady Bag Company LLC

Southeast Community Development Fund X, L.L.C.

5/15/2020

GAXtracts LLC

Southeast Community Development Fund X, L.L.C.

11/1/2019

Global Environmental Enterprises, LLC

Southeast Community Development Fund X, L.L.C.

3/13/2019

Meridian Holdings, Inc. & Danimer Scientific Holdings, LLC

Southeast Community Development Fund X, L.L.C.

12/10/2020

StruXure Outdoor, Inc.

Amount of Certified Capital invested

Stonehenge GA Rural Fund, LLC

6/10/2020

CFactor Leasing Corp.

Stonehenge GA Rural Fund, LLC

6/25/2021

CFactor Leasing Corp.

Stonehenge GA Rural Fund, LLC

11/16/2020

Conner Holdings, LLC

Stonehenge GA Rural Fund, LLC

12/20/2019

Custom Structures, Inc.

Stonehenge GA Rural Fund, LLC

1/27/202

Custom Structures, Inc.

Stonehenge GA Rural Fund, LLC

4/26/2019

Door Kraft Products, Inc.

Stonehenge GA Rural Fund, LLC

1/17/2020

Georgia Dental Management, LLC

Stonehenge GA Rural Fund, LLC

8/4/2021

Georgia Dental Management, LLC

Stonehenge GA Rural Fund, LLC

3/25/2019

Holton Cattle & Consulting, LLC

Amount of Certified Capital Invested

Amount of capital invested $2,320,000 $2,595,000 $3,600,000 $6,500,000
$21,075,000 $4,250,000 $5,000,000 $2,000,000 $500,000 $6,500,000
$1,750,000 $20,000,000
$4,100,000 $500,000 $500,000 $5,100,000 $500,000 $5,500,000 $3,300,000 $500,000 $1,500,000 $21,500,000

Total GARJA Certified Capital Deployed: $103,965,000

7

Location and Industry Sector of Eligible

Businesses receiving GARJA Investments

GARJA Rural Fund

Business

County 2017 NAICS*

NAICS Title/Sector

Enhanced Capital Georgia Rural Fund,LLC
Southeast Community Development Fund X, LLC
Stonehenge GA Rural Fund, LLC

Highline Structures, LLC Cady Bag Company LLC CFactor Leasing Corp.

Appling Atkinson
Bryan

Stonehenge GA Rural Fund, LLC

CFactor Leasing Corp.

Bryan

Enhanced Capital Georgia Rural Fund, LLC
Stonehenge GA Rural Fund, LLC
Appalachian Fund I, LLC

White Oak Pastures, Inc.
Corner Holdings, LLC. Elixir Extrusions, LLC

Clay
Clinch Coffee

Georgia Rual Investment Fund, L.L.C.
Stonehenge GA Rural Fund, LLC
Georgia Rural Investment Fund, L.L.C.
Georgia Rural Investment Fund L.L.C.

Soteria Solar Services, LLC
Georgia Dental Management LLC Georgia Earth and Pipe,
LLC Hellman-Chang, LLC

Coffee Colquitt Dawson Dawson

Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Southeast Community Development Fund X, L.L.C.
Stonehenge GA Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC
Enhanced Capital Georgia Rural Fund, LLC

Keith Griffin Farms
Keith Griffin Farms
Luther Griffin Farm
Luther Griffin Farm
Meridian Holdings Group, Inc. & Danimer Scientific
Holdings, LLC Georgia Dental Management LLC Lake Country Brewing, LLC
Second Century AG, LLC
Blackdirt Farm Management, LLC
Blackdirt Farm Management, LLC
Blackdirt Farm Management, LLC Cornucopia Farms Avera,
LLC

Decatur Decatur Decatur Decatur Decatur
Dodge Greene Jefferson Jefferson Jefferson Jefferson Jefferson

321992 339999 333120 333120 11211 113310 331318 493110 621210 327320 337122
112111 112111 112111 112111 339999
621210 312120 115114 115116 115116 115116 11141

Prefabricated wood building manufacturing All other miscellaneous
manufacturing Construction machinery
manufacturing Construction machinery
manufacturing Beef cattle ranching and farming,
including feedlots Logging
Other aluminum rolling, drawing and extruding
Geeral warehousing and storage
Offices of dentists
Ready-mix concrete manufacturing
Nonupholstered wood household furniture
manufacturing Beef cattle ranching and farming
Beef cattle ranching and farming
Beef cattle ranching and farming
Beef cattle ranching and farming
All other miscellaneous manufacturing
Offices of dentists
Breweries
Postharvest Crop Activities (except cotton ginning)
Farm management services
Farm management services
Farm management services
Food crops grown under coverh

8

Location and Industry Sector of Eligible

Businesses receiving GARJA Investments

GARJA Rural Fund

Business

Enhanced Capital Georgia Rural Fund, LLC
Stonehenge GA Rural Fund, LLC

Cornucopia Farms Avera, LLC
Custom Structures, Inc.

County Jefferson Laurens

2017 NAICS*
11141
332311

Stonehenge GA Rural Fund, LLC Custom Structures, Inc.

Laurens

332311

Enhanced Capital Georgia Rural Fund, LLC
Southeast Community Development Fund X, L.L.C. Stonehenge GA Rural Fund, LLC
Georgia Rual Investment Fund, L.L.C.
Georgia Rual Investment Fund, L.L.C.
Appalachian Fund I, LLC
Southeast Community Development Fund X, L.L.C. Enhanced Capital Georgia Rural
Fund, LLC Enhanced Capital Georgia Rural
Fund, LLC Stonehenge GA Rural Fund, LLC

Soap Creek Marina & Resort, LLC
StruXure Outdoor, Inc.
Holton Cattle & Consulting, LLC
Bhugesh Investments, LLC
Bhugesh Investments, LLC
FarmGrowth Management Services, LLC GAXtracts LLC
Cabinet Concepts, LLC
Cabinet Concepts, LLC
Door Kraft Products, Inc.

Lincoln Lumpkin Mitchell Morgan Morgan Morgan Oconee Putnam Putnam Putnam

713930 33232 112111 336320 336320 115116 111421 337110 337110 336214

Enhanced Capital Georgia Rural Fund, LLC
Southeast Community Development Fund X, L.L.C.
Georgia Rual Investment Fund, L.L.C.
Southeast Community Development Fund X, L.L.C.
Georgia Rual Investment Fund, L.L.C.
Enhanced Capital Georgia Rural Fund, LLC
Appalachian Fund I, LLC

Horton Cargo Haulers, LLC Putnam

1115 Smith OpCo LLC

Thomas

Checkmate Manufacturing, LLC
Global Environment Enterprises, LLC
Revive Milling, LLC

Thomas Washington Washington

Habersham Vintners, Inc.

White

Eagle Railcar Services

Wilkinson

623312 332119 326199 326199 115114 111332 488210

Appalachian Fund I, LLC

Gordon Switching Company Wilkinson

488210

* NAICS is the North American Industry Classification System

NAICS Title/Sector Food crops grown under cover
Prefabricated metal building and component manufacturing
Prefabricated metal building and component manufacturing Marinas
Ornamental and architectural metal products manufacturing
Beef cattle ranching and farming
Motor vehicle electrical and electronic equipment manufacturing
Motor vehicle electrical and electronic equipment manufacturing Farm management services
Nursery and tree production
Wood kitchen cabinet and countertop manufacturing Wood kitchen cabinet and countertop manufacturing Wood kitchen cabinet and countertop manufacturing Travel trailer and camper
manufacturing Assisted living facilities for the
elderly Metal crown, closure and other metal
stamping (except automotive) All other plastics product manufacturing
Postharvest crop activities (except cotton ginning) Grape vineyards
Support activities for rail transportation
Support activities for rail transportation

9

It's More than agriculture:

GARJA's largest industry investment

The Georgia Agribusiness and Rural Jobs Act, although aptly named for the subject, has agriculture as its second-highest

investment category. Manufacturing is the highest investment

category at $52,500,000.

Danimer Scientific is a 2019 addition to investments under

this category, receiving $6,500,000 from GARJA's Southeast

Community Development Fund X, L.L.C. Danimer creates

biodegradable, compostable and sustainable polymers

to replace plastics made from petrochemicals. Danimer

Scientific wants to use the investment to add "dozens" of

employees to its workforce. Every three out of four jobs will

be accessible to people with at least a high school degree

or its equivalent.

GARJA invested a total of $5,260,000 from its Georgia

Rural Investment Fund, L.L.C. in Bhughesh Investments,

LLC, between 2019 and 2020. It manufactures motor vehicle

electrical systems, electronic equipment and trailers for

film production companies. The company's investment goal

Bhugesh Investments, LLC, (top) and Danimer Scientific (bottom) are two, million

is to hire between 6-10 more employees to add to a staff of dollar manufacturing investments. GARJA

five within two years of receiving the investment.

made in 2019-2020.

10

11