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