2020 Georgia Agribusiness and Rural Jobs Act report : GARJA

GARJA
2020 Initial Georgia Agribusiness and Rural Jobs Act Report

Table of Contents
Overview Page 3 Accomplishments Page 4
Summary Pages 5-6 GARJA's Certified Capital Received Page 7 GARJA's Certified Capital Received Initial Page 7 Reporting Status Schedule of Tax Credits Page 7
Granted Qualified Investments in Eligible Business Pages 8-9
Location and Industry Sector of Pages 10-12 Companies Receiving GARJA Investment
Pie Chart of Investments by Industry Page 13 Sector
Map of Investment Activity in Georgia Page 14
2

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 7 for GARJA's Certified Capital Received and Initial 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 7 for the Schedule of Tax Credits Granted.
The purpose of this publication is to summarize the information provided on the Initial Reports submitted by all Rural Funds for the initial deployment of their collective $100 million in capital investments.

3

Accomplishments

At the end of the initial two-year deployment period for GARJA (June 30, 2020), the five Rural Funds deployed a total of 38 investments for a total of $101,355,000 in 23 counties in 4 of the 5 eligible industry sectors. Together, they expect to create 702 jobs and retain 608 jobs with these investments. Please see Page 8 for the Qualified Investments in Eligible Businesses.

# Rural Inv Fund

Term Loan

LOC

Total

Jobs

Jobs *

Equity Investment Created Retained Co.

4 Appalachian $18,000,000 Fund 1, LLC

$2,000,000 $20,000,000

122

299

3

16 Enhanced $20,880,000 Capital Georgia,
Rural Fund, LLC

$200,000 $21,080,000

269

6

Georgia

$12,915,000 $7,150,000 $210,000 $20,275,000

54

Rural

Investment

Fund, LLC

6 Southeast $18,799,980 Community Development Fund X, LLC

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

169

6 Stonehenge $19,450,000 Georgia
Rural Fund, LLC

$550,000 $20,000,000

88

38

$90,044,980 $7,150,00 $4,160,020 $101,355,00

702

197

9

23

4

21

6

68

6

608

* Number of Counties

Agricultural investments were 23.78% of the total, or $24,105,000. By statute, at least 10% of total capital investments had to be in this industry sector, and at least 10% of agricultural investments had to be equity investments. There were $2,810,000 in equity investments, or 11.65%.
Healthcare was 7.45%, or $7,550,000 Manufacturing was 50.02% or $50,700,000 Transportation and Warehousing was 17.76% or $18,000,000 Other was .99% or $1,000,000. This was Soap Creek Marina in Lincolnton that was
attached to boat manufacturing and is used to showcase for boat sales Technology is not represented
4

Summary
CHALLENGES
The Rural Funds reported that investments in the technology industry were particularly challenging since they received very few inquiries from technology companies. The technology companies reviewed were difficult to underwrite since they were startups or early stage companies. Several of the Rural Funds were unfamiliar with the State and who to partner with or where to go to find the small businesses in need of capital, which slowed their deployment of GARJA funds. Restricting the size of eligible businesses to 250 employees or less was another challenge for the Rural Funds.
STRATEGIES
Rural Funds were surveyed regarding how they partnered with other economic professionals throughout the State to achieve their success with the first phase of the program. Some indicated success by partnering with Economic Developers and Chambers, local lunch and learns, local and state representatives and senators for referrals, and the University of Georgia Small Business Development Centers. Others mentioned proprietary relations or direct calling with little assistance from economic professionals. Several mentioned that the most helpful leads came from DCA and commented that the credibility of DCA was the most effective tool they had to get the word out regarding the GARJA Program. DCA worked diligently with local regional representatives to promote GARJA, making it a top priority to discuss at all speaking engagements and meetings with local development authorities in rural areas of eligibility. Regional representatives referred small businesses to the Rural Funds in hopes that they could make their investments in their communities. Open communication among the Rural Funds and DCA has been essential to the success of the program, to date. DCA continues to market the program on behalf of the Rural Funds.
Most of the Rural Funds made the reporting process much easier by submitting their initial detailed reports on each investment as the investment was made instead of waiting until the end of the initial two-year deployment period to submit them. This enabled DCA to monitor the progress of the program over the initial deployment period, as well as generate the initial statistics for management more quickly. The Initial Reports then verified the grand totals and provided compliance certifications necessary to satisfy statute requirements.
5

Summary, continued
SUCCESSES
DCA determined the Rural Funds deployed the initial $100 million of capital investments in compliance with the rules and regulations of the program. In one instance, a Rural fund was able to revolve investments before the initial deployment date deadline. Another Rural Fund found it necessary to add their own investments to make a project work to the advantage of the small business. Four of five of the targeted industry sectors had significant job creation. Please refer to Pages 10-12 for the Location and Industry Sector of Eligible Businesses Receiving GARJA Investments along with the Pie Chart of Investments by Industry Sector on Page 13 and a Map of Investment Activity in Georgia on Page 14. DCA observed that almost all of the GARJA investments were first lien investments with turn-down letters from local banks. Without the advantage of the GARJA Program, these small businesses would not have been able to secure any financing. The Rural Funds were able to provide affordable, patient capital at reasonable rates. The success of the GARJA Program has gotten the attention of other states. DCA has received calls to discuss the details of the GARJA Program from states working to establish a similar, successful program.
A DCA website is available for other states to view along with the contact information of the Rural Funds.
https://www.dca.ga.gov/community-economic-development/incentive-programs/ georgia-agribusiness-rural-jobs-act
The website has been helpful to market to all development authorities and professional economic developers throughout Georgia.

6

GARJA's Certified Capital Received and Initial Reporting Status

GARJA Rural Fund

Amount of Certified Capital Received

Appalachian Fund I, LLC

$20,000,000

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 Total Invested in GARJA

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

Initial Amount of Certified Capital Deployed

Initial Reporting

$20,000,000 $21,080,000

In Compliance In Compliance

$20,275,000

In Compliance

$20,000,000

In Compliance

$20,000,000

In Compliance

$101,355,000

Schedule of Tax Credits Granted

GARJA Rural Fund

Tax Credits Authorized 2020

Appalachian Fund I, LLC

$3,000,000

Enhanced Capital Georgia Rural Fund, LLC Georgia Rural Investment Fund, L.L.C.

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

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

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

Total Tax Credits Authorized for 2020 $15,000,000

7

Qualified Investments in Eligible Businesses

GARJA Rural Fund
Appalachian Fund I, LLC

Investment Name of Business Date

12/31/19

Eagle Railcar Services

Appalachian Fund I, LLC

12/31/19

Elixir Extrusions, LLC

Appalachian Fund I, LLC

6/17/20

Appalachian Fund I, LLC

6/17/20

Amount of Certified Capital Invested

FarmGrowth Management Services, LLC
Gordon Switching Company

Amount of Certified Capital Invested
$6,500,000 $6,500,000 $2,000,000
$5,000,000
$20,000,000

Enhanced Capital Georgia Rural Fund, LLC

12/12/18

Enhanced Capital Georgia Rural Fund, LLC

10/30/19

Enhanced Capital Georgia Rural Fund, LLC

5/20/20

Enhanced Capital Georgia Rural Fund, LLC

1/7/19

Enhanced Capital Georgia Rural Fund, LLC

7/2/19

Enhanced Capital Georgia Rural Fund, LLC

4/10/20

Enhanced Capital Georgia Rural Fund, LLC

4/30/20

Enhanced Capital Georgia Rural Fund, LLC

2/21/20

Enhanced Capital Georgia Rural Fund, LLC

4/17/19

Enhanced Capital Georgia Rural Fund, LLC

3/8/19

Enhanced Capital Georgia Rural Fund, LLC

4/10/20

Enhanced Capital Georgia Rural Fund, LLC

9/17/18

Enhanced Capital Georgia Rural Fund, LLC

6/4/20

Enhanced Capital Georgia Rural Fund, LLC

12/12/19

Enhanced Capital Georgia Rural Fund, LLC

3/29/10

Enhanced Capital Georgia Rural Fund, LLC

3/20/20

Amount of Certified Capital Invested

Blackdirt Farm Management, $2,000,000 LLC

Blackdirt Farm Management, $587,850 LLC

Blackdirt Farm Management, $500,000 LLC

Cabinet Concepts

$1,500,000

Cabinet Concepts

$325,000

Cornucopia Farms Avera, LLC
Habersham Vintners, Inc.

$345,000 $800,000

Highline Structures, LLC

$1,500,000

Horton Cargo Haulers, LLC $2,000,000

Keith Griffin Farms

$1,800,000

Lake Country Brewing, LLC $250,000

Luther Griffin Farm

$3,800,000

Luther Griffin Farm

$1,072,150

Second Century AG, LLC

$3,000,000

Soap Creek Marina & Resort, $1,000,000 LLC

White Oak Pastures, Inc.

$600,000

$21,080,000

8

Qualified Investments in Eligible Businesses

GARJA Rural Fund

Investment Date

Georgia Rural Investment Fund, L.L.C.

5/15/19

Georgia Rural Investment Fund, L.L.C.

5/15/20

Georgia Rural Investment Fund, L.L.C.

5/29/19

Georgia Rural Investment Fund, L.L.C.

6/25/19

Georgia Rural Investment Fund, L.L.C.

4/9/20

Georgia Rural Investment Fund, L.L.C.

12/27/19

Amount of Certified Capital Invested

Name of Business
Bhugesh Investments, LLC Bhugesh Investments, LLC Georgia Earth and Pipe, LLC Hellman-Chang, LLC Revive Milling, LLC Soteria Solar Services, LLC

Amount of Certified Capital Invested
$2,960,000 $2,300,000 $2,320,000 $2,595,000 $3,600,000 $6,500,000 $20,275,000

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

8/21/19 6/17/20 5/15/20 11/1/19 3/13/19

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

12/10/20

Amount of Certified Capital Invested

1115 Smith OpCo LLC
Cady Bag Company LLC
GAXtracts LLC
Global Environmental Enterprises, LLC Meridian Holdings Group, Inc. & Danimer Scientific Holdings, LLC StruXure Outdoor, Inc.

$4,250,000 $5,000,000 $2,000,000 $500,000 $6,500,000
$1,750,000 $20,000,000

Stonehenge GA Rural Fund, LLC Stonehenge GA Rural Fund, LLC Stonehenge GA Rural Fund, LLC Stonehenge GA Rural Fund, LLC

6/10/20 12/20/19 4/26/19 1/17/20

Stonehenge GA Rural Fund, LLC 3/25/19

Stonehenge GA Rural Fund, LLC 11/16/20 Amount of Certified Capital Invested

CFactor Leasing Corp.

$4,100,000

Custom Structures, Inc.

$5,100,000

Door Kraft Products, Inc.

$5,500,000

Georgia Dental Management, $3,300,000 LLC

Holton Cattle & Consulting, $1,500,000 LLC

Conner Holdings, LLC

$500,000

$20,000,000

Total GARJA Certified Capital Deployed $101,355,000

9

Location and Industry Sector of Eligible Businesses Receiving GARJA Investments

GARJA Rural Fund
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
Stonehenge GA Rural Fund, LLC
Appalachian Fund I, LLC
Georgia Rural Investment Fund, L.L.C. Georgia Rural Investment Fund, L.L.C. Georgia Rural Investment Fund, L.L.C.
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

Business Name County

Highline Structures, LLC
Cady Bag Company LLC
CFactor Leasing Corp.
White Oak Pastures, Inc.

Appling Atkinson Bryan Clay

Conner Holdings, LLC.

Clinch

Elixir Extrusions, LLC Coffee

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

Coffee Dawson Dawson

Keith Griffin Farms Decatur

Luther Griffin Farm Decatur

Luther Griffin Farm Decatur

Meridian Holdings Group, Inc. & Danimer Scientific Holdings, LLC
Georgia Dental Management LLC
Lake Country Brewing, LLC
Second Century AG, LLC

Decatur
Dodge Greene Irwin

Blackdirt Farm Management, LLC
Blackdirt Farm Management, LLC
Blackdirt Farm Management, LLC
10

Jefferson Jefferson Jefferson

2017 NAICS*
321992 339999 333120 11211
113310 331318
493110 327320 337122
112111 112111 112111 339999
621210 312120 115114
115116 115116 115116

NAICS Title/Sector
Prefabricated Wood Building Manufacturing All Other Miscellaneous Manufacturing Construction Machinery Manufacturing Beef Cattle Ranching and Farming, including Feedlots Logging
Other Aluminum Rolling, Drawing, and Extruding General Warehousing and Storage Ready-Mix Concrete Manufacturing Nonupholstered Wood Household Furniture Manufacturing 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

Location and Industry Sector of Eligible Businesses Receiving GARJA Investments

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

Business Name County 2017 NAICS*

Cornucopia

Jefferson 11141

Farms Avera, LLC

Custom Structures, Inc.

Laurens 332311

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

Soap Creek Marina & Resort, LLC
StruXure Outdoor, Inc.

Lincoln 713930 Lumpkin 33232

Stonehenge GA Rural Fund, Holton Cattle & Mitchell 112111

LLC

Consulting, LLC

Georgia Rural Investment Fund, L.L.C.

Bhugesh

Morgan 336320

Investments, LLC

Georgia Rural Investment Fund, L.L.C.

Bhugesh

Morgan 336320

Investments, LLC

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

FarmGrowth Management Services, LLC GAXtracts LLC
Cabinet Concepts, LLC

Morgan 115116
Oconee 111421 Putnam 337110

Enhanced Capital Georgia Cabinet

Rural Fund, LLC

Concepts, LLC

Putnam 337110

11

NAICS Title/Sector
Food Crops Grown Under Cover 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

Location and Industry Sector of Eligible Businesses Receiving GARJA Investments

GARJA Rural Fund

Business Name County

Stonehenge GA Rural Fund, Door Kraft

LLC

Products, Inc.

Putnam

2017 NAICS* 337110

Enhanced Capital Georgia Horton Cargo

Rural Fund, LLC

Haulers, LLC

Putnam

336214

Southeast Community

1115 Smith OpCo Thomas

Development Fund X, L.L.C. LLC

623312

Southeast Community Development Fund X, L.L.C.
Georgia Rural Investment Fund, L.L.C.

Global Environmental Enterprises, LLC
Revive Milling, LLC

Washington 326199 Washington 115114

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

Habersham Vintners, Inc.
Eagle Railcar Services

White

111332

Wilkinson 488210

Appalachian Fund I, LLC

Gordon Switching Company

Wilkinson 488210

NAICS Title/ Sector Wood Kitchen Cabinet and Countertop Manufacturing Travel Trailer and Camper Manufacturing Assisted Living Facilities for the Elderly All Other Plastics Product Manufacturing Postharvest Crop Activities (except Cotton Ginning) Grape Vineyards
Support Activities for Rail Transportation Support Activities for Rail Transportation

*NAICS is the North American Industry Classification System

12

Georgia Agribusiness and Rural Jobs Act
Investments by Industry Sector in 23 Counties (as of 6/30/2020)

Key:
Manufacturing: $50,700,000 Agricultural: $24,105,000 Transportation & Warehousing: $18,000,000 Healthcare: $7,550,000 Other: $1,000,000
Total Amount: $101,355,000

.99%

17.76%

23.78%

50.02%

7.45%

13

Georgia Agribusiness and Rural Jobs Act Program

Investment Activity as of 6/30/2020

GARJA Loan Totals

Dade

Catoosa Whitfield

Fannin

Towns Rabun Union

Under $1 million

Walker Chattooga

Murray Gilmer

Gordon

Pickens

Lumpkin WhiteHabersham

(1)

Stephens

Dawson

(2)

Hall Banks Franklin Hart

$1 - $4 million $4 - $8 million $8 - $12 million

Floyd

Bartow Cherokee Forsyth

Over $12 million

Jackson Madison Elbert

Polk Paulding Cobb

Gwinnett Barrow Clarke Oglethorpe

Haralson Carroll Heard

Douglas

DeKalb

Oconee

Walton

(1)

Wilkes (2)

Fulton

Rockdale

Clayton

Newton

Morgan (3)

Greene Taliaferro

Lincoln (1)
Columbia

Henry

McDuffie

Fayette

Warren

Coweta

Spalding

Butts

Jasper

Putnam (4)

Hancock Glascock

Richmond

GARJA non-eligible GARJA eligible

Troup

Meriwether

Pike Lamar Monroe

Jones Baldwin

Jefferson Washington (4)

Upson

(2)

Harris

Talbot

Bibb

Wilkinson

Crawford

Twiggs

Johnson

Burke Jenkins Screven

Muscogee ChattahoocheeMarion

Taylor

Peach

Houston Bleckley

Macon

Laurens (1)

Emanuel

Treutlen

Candler

Bulloch

Effingham

Schley
Stewart Webster Sumter
Quitman Randolph Terrell Lee

Dooly Crisp

Pulaski Wilcox

Dodge (1)

Montgomery

Wheeler (1)

Toombs

Evans

Tattnall

Telfair

Bryan (1)

Turner

Ben Hill

Jeff Davis Appling (1)

Liberty Long

Chatham

Clay (1) Calhoun

Dougherty

Worth

Irwin (1) Tift

Coffee (2)

Early

Baker

Miller

Seminole Decatur (4)

Mitchell (1)

Colquitt

Atkinson

Berrien

(1)

Cook

Grady (1)

Thomas (1)

Brooks

Lanier

Clinch (1)

Lowndes Echols

Bacon

Wayne

Pierce

McIntosh

Ware

Brantley

Glynn

Charlton

Camden

14