Economic development financing packet, 1996 / Georgia Dept. of Community Affairs

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ECONOMIC

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DEVELOPMENT

FINANCING

PACKET

GEORGIA DEPARTMENT OF
COMMUNITY AFFAIRS
November 1996

ECONOMIC DEVELOPMENT FINANCING PACKET
Georgia Department of Community Affairs
60 Executive Park South, N.E. Atlanta, Georgia 30329-2231 (404) 679-1593 This publication is funded in part by a grant from the Appalachian Regional Commission and the Southeast Rural Community Assistance Project. An Equal Opportunity Employer
/fyou are disabled and would like to receive this publication in an altemativeformat, please contact the Georgia Department of Community Affairs at (404) 679-/593 or 1 (800) 736-1155 (TDD).

Contents

Introduction and Acknowledgments
Secretary of State First Stop Business Information Center

1 Tax-Exempt Industrial Development

Bond Financing

39

2 Office of Rural Development

40

How to Operate a Business Legally in Georgia

3 GEORGIA ENVIRONMENTAL

THE FEDERAL SMALL BUSINESS

FACILITIES AUTHORITY (GEFA)

41

ADMINISTRATION (SBA)

6 Water and Sewer Loan Program

42

Your Business and the S.B.A.

7 Recycling and Solid Waste Facilities Loan Program 43

How to Apply for a Small Business Loan

9 State Revolving Loan Fund

44

Small Business Development Centers

10 Clean Fuels Grant Program

45

Headquarters: University of Georgia at Athens

10 Recycling and Waste Reduction Grant Program

46

Service Corps of Retired Executives (SCORE)

13 Emergency Loan Program

.47

Active Corps of Retired Executives (ACE)

13

GEORGIA DEPARTMENT OF

U.S. Small Business Administration

NATURAL RESOURCES

48

7(a) Guarantee Loan Program

14

Participants in the U.S. Small Business Administration's

State Historic Preservation Tax Incentives

.49

Certified Lender Program & Preferred Lender Program 15 Twenty Percent Investment Tax Credit..

50

Section 504 Program

17 UNITED STATES DEPARTMENT OF

Georgia's Certified Development Companies

19 AGRICULTURE (USDA)

SBA LowDoc Program

21 RURAL DEVELOPMENT (RD)

51

GRASP SBA Microloan Program

22 Georgia Intermediary Relending Program

52

Entrepreneurial Development Loan Fund

24 Georgia Rural Business Enterprise Grants

54

Small Business Investment Companies
Surety Bond Guarantee Program
STATE OF GEORGIA PROGRAMS OFFERED THROUGH THE GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS (DCA)
Community Development Block Grant (CDBG) Regular Round Economic Development Program
Employment Incentive Program (EIP) Georgia Appalachian Region Business Development Revolving Loan Fund Program (RLF)

26 Georgia Business and Industry

27 Guaranteed Loan Programs

55

Financing For Small Municipal and Rural

Community Facility Projects

56

Financing for Small Municipal and Rural Water,

28 Wastewater and Solid Waste Systems

59

Emergency Community Water Assistance Grants

60

29 MINORITY PROGRAMS

61

30

Minority Small Business Resource Organizations

62

Minority Business Development Agencies (MBDA) 63

31 Georgia Minority Subcontractors Tax Credit

64

Appalachian Regional Commission

Infrastructure Funds

33

Georgia Business Expansion and Support Act

Executive Summary

34

Loans for Rural Industry (LFRI)

37

Incentive Loans for Industry (ILFI)

38

i

CITY AND COMMUNITY DEVELOPMENT

65 OTHER FEDERAL AND STATE PROGRAMS

OFFERING FINANCIAL AND

U.S. Department of Housing and Urban Development

TECHNICAL ASSISTANCE

80

(HUD) Community Planning and Development

Section 108 Loan Guarantees

66 U.S. Department of Commerce

Atlanta Economic Development Corporation

68 Economic Development Administration (EDA)

81

City Business Improvement Districts

70 United States Export Assistance Center (USEAC)

82

Community Improvement Districts

71 Tennessee Valley Authority (TVA)

83

Georgia's Freeport Law

72 EDA Local Revolving

ADULT EDUCATION AND TRAINING

Loan Fund (RLF) Programs

84

74 Regional Development Centers

85

Quick Start

75 Export-Import Bank

87

Job Training Partnership Act (JTPA)

76

Federal Home Loan Bank Community Investment Program (CIP)

88

Georgia Department of Revenue Georgia Department of Technical and Adult Education Georgia Tax Credit for Adult Basic Skills Education ...... 77

Rural Business and Cooperative Development Service Program

89

Georgia Procurement Assistance Center (GPAC)

90

ii

Introduction and Acknowledgments

This packet contains information about various federal, state, and local financing programs that directly or indirectly benefit Georgia businesses or those businesses interested in making Georgia their home. Many of these programs may also directly benefit local governments. We have also included information on the Secretary of State's First Stop Business Information Center. The Center should be helpful to persons who are considering starting a new business or who need information on where to obtain permits. This packet also contains the locations of small business development centers throughout the state. If further information is needed about technical assistance available to businesses, please contact our office.

Please feel free to contact the department's staff for further information.
For further information contact: Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, Georgia 30329-2231
Brian Williamson or Ross Avina (404) 679-1587 or 679-1593
Andy Yarn (404) 679-1585

We are indebted to the many agencies that have willingly provided us information about their programs. Much of the information in this package is reprinted or summarized from their literature. The packet is not comprehensive, no packet could include all laws or local programs that might benefit businesses, but it is meant to be thorough. We have tried to avoid errors but suggest that businesses interested in one or more of the programs in the packet contact the agencies that run the programs for more information. Businesses should be aware that these programs are updated periodically by changes in law or regulation.

We hope the information presented here will contribute to business start-ups and expansions here in Georgia.

1

Secretary of State First Stop Business Information Center

The Secretary of State's office now offers the First Stop Business Information Center for the citizens of Georgia. The center was established in 1995 after studying the problems faced by small business owners when trying to obtain clear and accessible information about state and regulatory requirements.
The primary objective of this center is to facilitate sustainable small business development in Georgia by offering a central location for determination of what licenses and permits must be obtained and maintained by individuals and businesses conducting their enterprises in the State of Georgia.
The First Stop Business Information Center provides the small business owner and the prospective entrepreneur with a central point of information and contacts for state regulatory requirements for operating a small business.

For further information contact the Office of the Secretary of State at:
Suite 315 West Tower Floyd State Office Towers 2 Martin Luther King Jr. Drive Atlanta, Georgia 30334 1-800-656-4558 (404) 656-7061 (404) 657-6380 Fax (404) 656-2392 TTY Communication
Current as of: 11/96

2

How to Operate a Business Legally in Georgia

Almost everyone who starts a new business is aware that a business license is necessary to operate legally in Georgia, but what other legal requirements do the state and federal government have? What does the owner need to know about withholding tax, building occupancy permit, and sales and use tax?
Finding out this information can be difficult, since it means talking to several different agencies at the federal, state and local levels. This information is not allinclusive and should not be considered a substitute for legal assistance from a qualified attorney. Also, since the requirements are subject to change, prospective business people should contact the individual departments for the latest information.
Probably the best place to start in assimilating all this information is with the business license. Everyone is generally aware of the need for one, but not everyone knows where to get it. If located within an incorporated city limit, a license must be obtained from the city; if outside the city limits, then from the county.
Also, those who are planning to occupy a new building or use an existing one for a new business, may have to apply for a Certificate of Occupancy from the appropriate city or county zoning department.
Businesses involved in food processing or grocery sales need a food sales establishment license from the Georgia Department of Agriculture before starting. An inspection is also required and may be requested by phone. An application for business will be accepted if the inspection shows that the establishment meets the department's requirements. Help can be obtained from the Department of Agriculture in preparing for the inspection. It is advised that business owners contact the department before investing in any renovation, equipment or plans. For information, contact: Georgia Department ofAgriculture, Consumer Protection Division, Agriculture Building, Room 306, Atlanta, Georgia 30334 (404) 656-3627
Firms engaged in cooking or preparation of food to be served, including restaurants, hotels and nursing homes, are licensed by the county environmental health departments.

Categories of business that concern the public interest also are subject to special permits, licensing and inspection. This includes schools, nurseries, motor transport, public entertainment, employment agencies, securities dealers and financial institutions. Contact the State of Georgia Information line at (404) 656-2000 for the number of the correct agency.
Businesses which sell alcoholic beverages must have a state alcoholic beverage license and a local license which is obtained from either the city or county in which the store is located. The application forms for the licenses must be completed before the business is opened. Local authorities and the Department of Revenue can be of assistance in preparing the application. For information and application forms from the state contact: Department of Revenue, Alcohol & Tobacco Unit, 801 Trinity-Washington Building, Atlanta, Georgia; (404) 656-4252
Taxes cannot be ignored, of course. Business owners are required by law to withhold the following from the wages paid to employees: federal income taxes, state income taxes and FICA (Social Security) Insurance.
Income taxes will also be levied by the federal and state governments on earnings of any business. Therefore, each business must file an income tax return with both agencies. Businesses may be required to file estimated tax returns and pay estimated taxes on a quarterly basis.
For federal tax information, contact: U.S. Internal Revenue Service, 275 Peachtree Street, N.E., Atlanta, Georgia 30303; (404) 522-0050
State tax information can be obtained from: Georgia Department of Revenue, Georgia Income Tax Division, Post Office Box 38067, Atlanta, Georgia 30334; (404) 656-4092

3

The IRS has a number of publications that are available upon request to small businesses. One of the most helpful is "Your Business Tax Kit", which includes data and forms for a Federal Employer Identification Number and a tax guide for small businesses that can be ordered by calling Forms and Publications at 1-800829-3676 or through a visit to the IRS office.
In Georgia there is a 4 percent sales and use tax which applies to the retail purchase, retail sale, rental, storage, use or consumption of tangible personal property and certain services. In other words, sales tax must be collected on just about every tangible item sold, except for the exempt categories of prescription drugs, eyeglasses and contact lenses.
A sales tax number is required for each business before opening. The number plus instructions for collection, reporting and remitting the money to the state on a monthly basis can be obtained from: Georgia Department of Revenue, Sales and Use Tax Division, Registration Section, 310 Trinity-Washington Building, Atlanta, Georgia 30334 (404) 656-4060. In addition, some counties have exercised local option issues to increase their sales and use tax to pay for certain projects.
Businesses are required by the state to pay unemployment insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it has paid gross wages of $1,500 or more in a calendar year. The taxes are payable at a rate of 2.7 percent on the first $8,500 in annual wages of an employee. Unemployment insurance must be reported and returns made to the state. For information contact: Georgia Department of Labor, Adjudication Section, Sussex Place, 148 International Boulevard, Suite 850, Atlanta, Georgia 30303-1751 (404) 656-5590.

If a business employs three or more, workers' compensation insurance must be carried to provide protection to those injured on on-the-job accidents. The State Board of Workers' Compensation aids people who need claim assistance. For information contact: State Board of Workers' Compensation, 270 Peachtree Street N.W., Atlanta, Georgia 30303-1299 (404) 656-3875.
Virtually all business entities are subject to the federal minimum wage, overtime and child labor laws.
Information on these laws and other federal laws pertaining to labor, may be obtained from: Daniel Bremer, District Director, U.S. Department of Labor, Wage and Hour Division, Room 668 1375 Peachtree Street, N.E., Atlanta, Georgia 30367 (404) 347-4258.
Incorporating a business allows a firm to take advantage of the limited liability of a corporation. A corporation is usually a taxpayer separate from its owners, unless the company decides it wants to be an "S" corporation for special tax consideration. Contact an attorney or accountant for information on just what each designation can mean to the firm.
Legal assistance will be needed to incorporate. Basically, this involves checking with the Secretary of State to see if the name chosen for the business is available. Typed Articles of Incorporation must then be submitted, along with a fee. Additionally, a notice of incorporation must be published in the official legal newspaper for the county. There is also a fee for this printing. Each business must submit a consent from a person who will act as registered agent for service of process on the corporation. This consent must be filed along with the Articles of Incorporation. The articles must name at least three directors, unless the corporation will have two or fewer shareholders. For more information, contact: Secretary of State, Corporations Division, 306 West Tower, Floyd Building, Two Martin Luther King Jr. Drive, S.E., Atlanta, Georgia 30334; (404) 656-2185.

4

Trademarks and service marks may be registered under federal laws or state laws. In Georgia, an application form should be filed, along with a $15 fee and copies of the trademark or service mark. Registration is then good for 10 years. In Georgia contact: Special Services Division, Secretary of State, Corporations Division, 306 West Tower, Floyd Building, Two Martin Luther King Jr. Drive, S.E., Atlanta, Georgia 30334 (404) 656-2861
For federal information contact: U.S. Department of Commerce, Trademark Office, 2021 Jefferson Davis Highway, Arlington, Virginia 22202 (703) 305-8341 (703) 308-9000 (800) 786-9199

Businesses that use any name other than the owner's must register this fictitious name with the county as required by the Trade Name Registration Act. This registration requirement does not apply to corporations doing business under their corporate names or to those practicing any profession under a partnership name. For information contact the Clerk of the Superior Court for the county in which the business is located.
And last but not least, if an established business is to be bought, the purchaser must comply with the Bulk Sales Law. This law requires that at least five days before the actual purchase, each creditor must be personally notified of the proposed sale. In counties of more than 200,000 population, this intent must be published at least one time in the county legal newspaper not less than seven days prior to completion of the purchase. An attorney should be consulted about this procedure.

5

The Federal Small Business Administration
(SBA)
6

Your Business and the S.B.A.

The U.S. Small Business Administration is a small independent federal agency created by Congress in 1953 to assist, counsel and champion the millions of American small businesses.
The mission of SBA is to help people get into business and stay in business. To do this, SBA acts as an advocate for small business. At the direction of Congress, the Agency espouses the cause of small business, explains small business's role and contributions to our society and economy and advocates policies that help small business.
The Agency also provides new and established small business owners with financial assistance, management counseling and training. SBA helps small firms get a fair share of government and assists in the bonding process.
Advocacy
Congress specified these basic statutory duties for SBA's Office of Advocacy: Serve as a focal point for feedback concerning the
policies and activities of any part of the executive branch of the federal government which affects small business. Counsel small businesses in dealing with the federal government. Represent small businesses before other federal agencies. Enlist the help of government and private groups to disseminate information about the federal government.
Financial Assistance
SBA offers a variety of loan programs to eligible small business concerns which cannot borrow on reasonable terms from conventional lenders without government help. There are two types of regular business loans: Direct loans from SBA (very limited). Guaranty loans, under which SBA guarantees up to
90% of the loan which bank or other private lenders agree to make.
Regular business loans may be used for: Building construction, expansion, or conversion Purchase of machinery and equipment, furnishings,
and fixtures
Inventory Working Capital

Surety Bonding: SBA is committed to making the bonding process accessible to small and emerging contractors who, for whatever reasons, find bonding unavailable to them. The Agency is authorized to guarantee to a qualified surety up to 90% of losses incurred under bid, payment, or performance bonds issued to contractors on contracts valued up to $1.25 million. For further information call (404) 347-0210.
Small Business Investment Companies (SBIC): SBA licenses, regulates and provides financial assistance to privately owned and operated small business investment companies. Their major function is to make "venture" or "risk" investments by supplying equity capital and by extending unsecured loans and loans not fully collateralized to small business enterprises. SBIC's are privately capitalized and obtain financial leverage from SBA. They are intended to be profit-making corporations.
Business Development: Statistics show that most small business failures are due to lack of good management. For this reason, SBA places special emphasis on improving the management ability of small business owners and managers. The Agency's Business Development program includes free individual counseling, courses, conferences, workshops, problem clinics and a wide range of publications.
SCORE & ACE: SCORE (Service Corps of Retired Executives) and ACE (Active Corps of Executives) help current and prospective small business owners solve their business problems and make long range plans by providing free counseling and conducting low cost workshops and seminars. (According to anAtlantaJoumal articledated 4/5/95, the Atlanta SCORE Chapter was ranked #1 in the nation).
Small Business Institutes (SBI):
SBI's are located on college and university campuses throughout Georgia. At each SBA school, senior and graduate students of business administration and their faculty advisors provide free, on-site management counseling to small firms.

7

Small Business Development Center (SBDC):
SBDC is headquartered at the University of Georgia in Athens, provides free managerial and technical counseling, management training programs, research studies and other types of specialized assistance to small businesses. Approximately 20 sub-centers are located strategically throughout Georgia to provide these services.
Procurement Assistance:
Each year the federal government contracts to purchase billions of dollars worth of goods and services from private companies. SBA helps businesses obtain a fair share of this governmental business, as required by law.
Procurement specialists in the Atlanta Regional Office counsel small businesses on how to prepare bids and obtain prime contracts and subcontracts, direct them to government agencies that buy the products or services small firms supply, help get their names on bidders lists and assist in obtaining drawings and specifications for proposed purchases. For more information call the Procurement Office at (404) 347-7587.

Business Information Center:
A state of the art business information center, known as the BIC was formally opened in October, 1992. Located in the Atlanta District Office, the BIC features seven DELL Corp. personal computers, two Apple MacIntosh computers, four VCR units for the facility's library of small business topics, two Epsons and one Personal Laser Writer printer. The BIC is open Monday through Friday, 8:00 A.M. to 4:00 P.M., and is available to the small business person free of charge.
For further information contact:
The Small Business Administration 1720 Peachtree Road, N.W. Suite 600 Atlanta, Georgia 30309 (404) 347-2441

Procurement Automated Source Systems (PASS):
This computerized system lists the names of small companies and their capabilities so that federal procurement officers, procurement officials and private contracts can readily locate small firms capable of performing federal work. PASS computer terminals are located in the SBA's 10 regional offices and in the offices of more than 125 major federal procurement officials and private prime contractors. Contact any SBA office to obtain the appropriate PASS forms.

Special Emphasis Areas:
SBA makes special efforts to help Veterans, Women and Minorities to get into business and become successful business owners and managers.

8

How to Apply for a Small Business Loan

Take the Following Information to your Banker and Discuss Your Financial Requirements With Him/Her
1. State the kind of business to be established or expanded in enough detail to describe the nature of the proposed operations.
2. State the total investment required for your business and the amount of funds you will provide. Expenditures ofloan proceeds should be designated for machinery, equipment, inventory, operating expenses, etc.
3. Describe organization of the business: proprietorship, partnership, or corporation. If the business is to be operated under a franchise agreement, please bring or forward a copy of the agreement.
4. State your experience and management capabilities.
5. If it is an existing business, have a Profit and Loss Statement for the previous full year and for the current year-to-date. Interim statements must not be over 90-days old.
6. If it is an existing business, prepare a current Balance Sheet (dated within 90-days) showing all assets and liabilities pertaining to the business. Also, provide one from the last year-end.
7. Prepare a current Personal Financial Statement of the owner or each partner or stockholder owning 20% or more of the voting stock.

8. Prepare a list of collateral which will be offered as security, showing date of purchase, its original cost and your estimate of present value.
9. Prepare a detailed estimate of earnings for the next two (2) years and show total sales, cost of sales, total operating expenses, and net profit.
If the bank is unwilling or unable to lend the requested amount or to give the terms desired, ask whether or not they would make the loan with an SBA guaranty of up to 90%. If the bank considers the loan request workable within an SBA guaranty, they should give you an SBA application to fill out and they will, in turn, forward the application package to the SBA for consideration. If approved, the loan will be disbursed through the bank.
NOTE: By law, the Agency may not make a loan if a
business can obtain funds from a bank or other private source. You, therefore, must seek private financing before applying to the SBA.
Effective October 1, 1985, the regular SBA Direct Loan Program was discontinued. There is limited funding for direct loans to Vietnam Era Veterans (August 5, 1964-May 7, 1975), Disabled Veterans with 30% or more service connected disability, and persons with eligible handicaps. Direct loan applicants must first seek private financing and all applications are considered on a case-by-case basis.

9

Small Business Development Centers

Headquarters: University of Georgia at Athens

Although listing sources of technical assistance is not the primary purpose of this publication, the Small Business Development Centers (SBDC's) are the primary way that Georgia tries to meet the needs of small business owners and would-be business owners when they have questions about the fundamentals of business operations. Examples of the kind of assistance provided include: business plan development, market research, record keeping and accounting, cash flow

analysis, financing alternatives and international trade. The University of Georgia System also provides specialized information and assistance to businesses on topics ranging from agriculture to industrial engineering. The SBDC's are referral sources for this specialized assistance. Listed below are the cities and telephone numbers of the SBDC's in Georgia. They are funded by both the University System and the U.S. Small Business Administration.

STATE OFFICE-Hank Logan, State Director
University of Georgia Chicopee Complex 1180 East Broad Street Athens, Georgia 30602-5412 (706) 542-7436 Gist 241-7436 FAX: (706) 542-6776
NORTHEAST GEORGIA DISTRICT SBDC
AUGUSTA SBDC Jeff Sanford, Center Manager 1061 Katherine Street Augusta, Georgia 30904-6105 (706) 737-1790 FAX: (706) 737-7937

DEKALBSBDC Eric Bonaparte 750 Commerce Drive Decatur, Georgia 30030-2622 (404) 373-6930 FAX: (404) 687-9684

GAINESVILLE SBDC Ron Simmons, Center Manager 456 Jesse Jewel Parkway, Suite 30 Gainesville, Georgia 30501-4203 (770) 531-5681 FAX: (404) 531-5684

GWINNETT SBDC Robert Andoh, Center Manager Gwinnett Technical Institute 1250 Atkinson Road Lawrenceville, Georgia 30246 (770) 806-2124 FAX: (404) 339-2329

NORTHWEST GEORGIA DISTRICT SBDC-Robert Dickson, District Director

CLAYTONSTATECOLLEGESBDC Alex Ferdinand, Center Manager Post Office Box 265 Morrow, Georgia 30260 (770) 961-3440 FAX: (404) 961-3428

FLOYD COLLEGE SBDC Drew Tonsmeire, Center Manager Post Office Box 1864 Rome, Georgia 30162-1864 (706) 295-6326 FAX: (706) 295-6732

continues on next page IkF 10

NORTHWEST GEORGIA DISTRICT SBDC-eontinued

GEORGIA STATE SBDC Lee Quarterman, Center Mgr. University Plaza, Box 874 Atlanta, Georgia 30303-3083 (404) 651-3550 FAX: (404) 651-1035

KENNESAW STATE COLLEGE SBDC Carlata Roberts, Center Manager Post Office Box 444 Marietta, Georgia 30061 (770) 423-6450 FAX: (404)423-6564

MORRIS BROWN COLLEGE SBDC Ray Johnson, Center Manager 643 Martin Luther King Jr. Dr. N.W. Atlanta, Georgia 30314 (404) 220-0201 FAX: (404) 220-0236

DALTONSBDC Mike Doyle, Center Manager Dalton College Technical Building, Room 112 213 North College Drive Dalton, GA 30720 (706) 272-2707 FAX: (706) 272-2701

SOUTHEAST GEORGIA DISTRICT SBDC -David Mills, District Director

BRUNSWICK SBDC 1107 Fountain Lake Drive Brunswick, Georgia 31525-3039 (912) 264-7343 FAX: (912) 681-0648

MACONSBDC Denise Ricketson, Center Manager Post Office Box 13212 Macon, Georgia 31208-3212 (912) 751-6592 FAX: (912) 751-6607

SAVANNAH SBDC Harry O'Brien, Center Manager 450 Mall Boulevard, Suite H Savannah, Georgia 31406-4824 (912) 356-2755 FAX: (912) 353-3033

STATESBORO SBDC David Lewis, Center Manager Landrum Center, Box 8156 Statesboro, Georgia 30460 (912) 681-5194 FAX: (912) 681-0648

WARNER ROBINS SBDC Ron Reaves, Center Manager 151 Osigian Boulevard Warner Robins, Georgia 31088 (912) 953-9356 FAX: (912) 953-9376

11

SOUTHWEST GEORGIA DISTRICT SBDC
Sue Ford, District Director
ALBANYSBDC Sue Ford, Center Manager 230 S. Jackson Street Suite 333 Albany, Georgia 31701-2885 (912) 430-4303 FAX: (912) 430-3933
VALDOSTA SBDC Suzanne Barnett, Center Mgr. Baytree West Professional Office 1205 Baytree Road, Suite 9 Valdosta, Georgia 31602-2731 (912) 245-3738 FAX: (921) 245-3741

COLUMBUS SBDC Tom Snyder, Center Manager 928 45th Street, North Building Room 523 Columbus, Georgia 31904-6572 (706) 649-7433 FAX: (706) 649-1928
LAGRANGESBDC David Baldwin, Center Manager LaGrange College 601 Broad Street LaGrange, GA 30240 (706) 812-7353 FAX: (706) 845-0391

12

SCORE & ACE

Service Corps of Retired Executives (SCORE)
Active Corps of Retired Executives (ACE) Sponsored by U.S. Small Business Administration
SCORE is Free counseling for small businesses A non-profit association of retired executives with
25 years of counseling experiences Brains, ideas, skills and experience Volunteers ready to share their skills and insight

Georgia SCORE Chapters

Atlanta

1720 Peachtree Road, N.W

Suite 600, North Tower Atlanta, Georgia 30309

(404)347-2441

(Voice mail box to order brochures) (404) 347-2460

(To speak with a counselor)

Athens

Gerald Rucker 340 Weatherly Woods Drive Winterville, Georgia 30683 (706) 545-5965

Augusta

do Executive Tax Service 106 Pleasant Home Road LePavillion Center, Suite 2-R Augusta, Georgia 30907 (706) 869-9100

Columbus

1st Union Bank 101 13th Street Columbus, Georgia 31902 (706) 596-8331

Dalton

P. O. Box 1941 305 Thornton Avenue Dalton, GA 30720 (706) 278-7373

Savannah

Trust Company Bank 33 Bull Street, Suite 580 Savannah, Georgia 31401 (912) 652-4335

13

u.s. Small Business Administration
7(a) Guarantee Loan Program

Small Bioess Administration (SBA) loans and loan guarantesare available to businesses which cannot
borrowsseasonable terms from conventional lenders. Two mj" programs exist: the 7(a) or regular loan guarana program and the 504 or Certified
Develojent Company program. Normally, the limit of SBAlssistance to anyone borrower whether particiiJ8g in one or both programs is $750,000. Total project IllS can be much higher with private and other public SKes providing additional financing.

Use of Loan Proceeds Land and Building Acquisition Inventory Machinery and Equipment Working Capital Renovation of Building Accounts Receivable Leasehold Improvement Refinancing of Current and Secured Debt

Busineslligibility Eligii businesses include for-profit businesses
only. Inelijfe businesses include:
1m-profit organizations ~ive income and real estate companies aveloperllandlord deals irancial institutions Ifligious institutions
Businetiize Standards Man.ii:turingbusinesses cannot employ more than
500 )Dple, unless otherwise specified in the Stanid Industrial Classification (SIC) code. Retailldservicebusinessescannot have more than $5 milli.sales, unlessotherwise specified intheSICcode. WhoSle business cannot employ more than 100 peopanless otherwise specified in the SIC code.
Type olloancing Borreer must be the user of the loan proceeds.
LoanMunt Up 1t$750,000 total SBA exposure per small
busi. concern. SBA can guarantee up to 80% of loan. $100,000 or less and up to 75% of loans for )We than $100,000, up to a maximum of $75~1The percentage SBA guarantees depends on tbF>ject.

Repayment Term The bank sets the loan term from 1 to 25 years
depending on the purpose, use of proceeds, ability to repay, and the useful life of the assets being purchased.
Interest Rate The bank determines the interest rate. The SBA
guarantee is available only if the bank's interest rate does not exceed 2.75% above "the New York prime rate" on a loan with a repayment term of 7 years or more and 2.25% on a loan with a repayment of less than 7 years.
Down Payment The cash or equity injection of the small business
concern varies depending on the collateral pledged to secure the loan, the viability of the project, and the profitability of the company. This requirement could vary from 10% to 40% depending on these factors.
Refinancing Loans can be refinanced under certain conditions at
the discretion of the SBA.
Basic Credit Criteria Adjusted cash flow must be sufficient to service the
debt.
Adequate collateral sufficient to secure the loan. Personal guarantees required of the major principals
or owners.

Loan Servicing The bank services the loan.

continueson next page I!F 14

Fees

Parn:ipants in the u.s. Small BusinessAdministration's



Guaranty fee of 2% on the guaranteed amount of the loan

Certified Lender Program & Preferred Lender Program

paid to the SBA.

This list includes only those banks

Usual and customary fees charged with CLP and/or PLP status as of

by the bank which are dictated by 8/6/96. All banks are eligible to

the bank.

participate in SBA's Guaranteed

The legal and closing fees are paid Loan Programs.

by the borrower.

*Colonial Bank 500 Northridge Road Suite 200 Atlanta, GA 30350 David Boehmig (770) 642-0800

Source of Funds

*AT&T Capital Corporation

The bank provides the funds and 500 Chastain Center Blvd.

the SBA provides a guarantee to Suite 555

the bank.

Kennesaw, GA 30144

Doug Hood

Benefits of an SBA

(404) 514-4428

Guaranteed Loan
Encourages the bank to make the loan because the SBA guarantee ?ecreases the bank's exposure and Increases the bank's liquidity.

*BDC of Georgia, Inc. 4000 Cumberland Parkway Suite 1200-A Atlanta, GA 30339 Tom Dorman

Provides banks with a marketable (404) 434-0273

security guaranteed by the federal

government.

*Bank of America

Improves the bank's loan volume 1230 Peachtree Street

and quality.

Suite 3600

Atlanta, GA

Reduces or limits the bank's Timothy D. Smith

credit risk.

(404) 249-6981

Provides loans to small

businesses which are not Bank of Coweta

available otherwise.

P. O. Box 1218

Provides loan applicants with Newan, GA 30264

longer maturity.

J. Daniel Preston, Jr.

(770) 253-1340

Community Bank & Trust P. O. Box 1900 Cornelia, GA 30531 William M. Galardi (706) 778-2265
*Eastside Bank & Trust P.O. Box 1428 Snellville, GA 30278 Frayne Bentley (404) 979-2265
Fidelity National Bank P.O. Box 105075 Atlanta, GA 30348 Daniel Ford (404) 240-1525
*First Capital Bank 1725 Indian Trail Road Norcross, GA 30093 Kathleen Bradford (404) 921-6400
First Colony Bank 300 South Main Street

For further information contact:
The Small Business Administration (SBA) 1720 Peachtree Street, Suite 600 Atlanta, Georgia 30309 (404) 347-2441

Bank of North Georgia 12355 Arnold Mill Road Alpharetta, GA 30201 Joy Manbeck (770) 664-7861

Note: You may alsocontactyour *The Coastal Bank

localbank or any ofthe

P.O. Box 9747

preferredlenders listedon Savannah, GA 31412-9747

the following pages.

William L. Kleinpeter

Alpharetta, GA 30201 Robert J. Shaw (404) 355-1922
First National Bank of Alma P.O. Box 2028 Alma, GA 31510 Zach Johnson (912) 632-7262
*First National Bank of

Currentas of: 6/95

(912) 235-4400

Cherokee 1589-C Highway 92 N

Box 1238

Woodstock, GA 30188

*Denotes PreferredLenderStatus

Donna Pierson (404) 591-9000

15

*First South Bank, N.A. P.O. Box 14099 Macon, GA 31203-4099 H. Randolph Lee, Jr. (912) 477-4428

Mountain National Bank P.O. Box 49 Tucker, GA 30085-0049 Dale Earnhart (404) 491-8808

*Union County Bank P.O. Box 398 Blairsville, GA 30512 Steve Cockerham (706) 745-2151

*First State Bank & Trust Co. P.O. Box 280 Cordele, GA 31015 Jeff Johnson (912) 273-1631
*Georgia Bankers Bank 3715 Northside Parkway Suite 800, Bldg. 300 Atlanta, GA 30327 Ken Vassey (404) 848-2900
Gulf Coast Bank & Trust Co. 4515 Chamblee-Dunwoody Rd. Suite #149 Atlanta, GA 30338 Juan Lago (404) 936-9015
Habersham Bank P.O. Box 1980 Cornelia, GA 30531 Daryl Grinstead (706) 778-1000
Middle Georgia Bank P.O. Box 25, Main Street Byron, GA 31000 W. L. Brown (912) 956-4300
*Milton National Bank 11650 Alpharetta Highway Roswell, GA 30076 Mark Bryant (404) 664-1990
*Money Store Investment Corp. 2970 Clairmont Rd. NE, Suite 800 Atlanta, GA 30329 Frank Talluto (404) 636-4075

*NationsBank

Vine Street Trust

P.O. Box 4685

5901-C Peachtree Dunwoody Road

Atlanta, GA 30302

S-420

Paul Hinds

Atlanta, GA 30328

(404) 607-5727

Brian C. Faulk

Regions Bank

(770) 551-8822

6637 Roswell Road

*Zions First National Bank

Atlanta, GA 30328

3390 Peachtree Road, N.E.

Susan Battle

Suite 900

(404) 255-8550

Atlanta, GA 30326

*Southern Crescent Bank 1585 Southlake Parkway

Michael Schwartz (404) 238-0878

Morrow, GA 30260 Robert Quinton (404) 968-6868

Certified lenders have the expertise to originate and process SBA loans and receive SBA decision on loan

*SouthTrust Bank of Georgia, N. A. guarantee applications within three

150 East Ponce de Leon Avenue working days. Preferred lenders

Suite 425

have the ability to originate, process

Decatur, GA 30030

and service loans backed by SBA

John. R. McArthur

guarantees. Preferred lenders do not

(404) 841-2184

need SBA approval for each

*The Summit National Bank 4360 Chamblee-Dunwoody Road Atlanta, GA 30341 Andree London (404) 454-0441
SunTrust, Atlanta

guarantee application, but SBA does review preferred lenders' guaranteed loan portfolio periodically. (Preferred lenders, without prior SBA approval, may only guaranteed up to 70% of loan principal.)

P. O. Box 4418, MC 31

Atlanta, GA 30302

Dedee Padgette

(404) 624-2995

Tucker Federal S&L Association 2985 W. Frank Gordy Parkway Marietta, GA 30066 Robert Garcia (404) 977-6688

16

Section 504 Program

Small Business Administration (SBA) loans and loan guarantees are available to small businesses which cannot borrow on reasonable terms from conventional lenders. Two major programs exist, the 7(a) or regular loan guarantee program and the 504 or Certified Development Company (CDC) program. The 504 loan program is a long-term, fixed asset, subordinated mortgage financing program for healthy and expanding small businesses as well as start-ups. Debentures guaranteed by SBA are pooled and sold in the private market in order to fund the loan proceeds. The limit of SBA assistance to anyone borrower participating in one or both programs is $750,000. (If certain policy objectives are met, the limit of assistance for the 504 program is $1,000,000.) Total project costs will be much higher with required private sector and owner's equity financing.

ELIGmLE BUSINESSES
Must be for profit corporation, partnership, or proprietorship;
Net worth must not exceed $6 million; Average net profit after tax not to exceed $2 million
for the last 2 years; The small business applicant must be the user of the
fixed assets financed; The project financed should stimulate economic
development and create one job per $35,000 of the SBA debenture amount; Meet industry-specific definitions of a small business as determined by SBA.
ELIGmLE USE OF PROCEEDS
Purchase land; Make site improvements to land; Acquire existing building; Construction or renovation; Purchase machinery & equipment with a useful life
of at least 10 years; Make a major addition to an existing building; A contingency up to 10% of the project cost for a
project involving construction; Some professional fees necessary to the project
(survey, appraisal)
Leasehold improvements to an existing building with a minimum useful life of 20 years.

INELIGmLE BUSINESSES
Non-profits Passive income and real estate companies Financial institutions or any enterprise primarily
engaged in the business of lending or investing Developer/Landlord Projects

INELIGIBLE USE OF PROCEEDS
Refinancing Counseling or consulting fees Finders fees Origination fees Working Capital Short life assets (inventory, vehicles,or officefurniture) Private lenders closing costs Venture capital Repayment or consolidation of existing debt

TYPICAL LOAN STRUCTURE AS A % OF PROJECT COST:

Bank

50%

45% 40%

35%

SBA

40%

40% 40%

35%

Business 10%

15% 20%

30%

Total

100% 100% 100%

100%

17

COMPARISON OF CDC LOAN WITH PRIVATE SECTOR LOAN

Maximum Loan Amount

CDC Portion Maximum debenture amount is $750,000 for anyone business (or $1,000,000 for certain public policy objectives)

Private Sector Lender Portion No maximum-Bank share must be at least equal to or greater than the SBA portion.

Minimum Loan Amount Term of Loan Rate of Interest Collateral
Job Creation

At least $50,000 - All loans are in increments of $1,000.
Maturity of 10 or 20 years. Based on weighted useful life of the assets being purchased with the proceeds of the loan.
Fixed, below commercial, determined on date of debenture sale Tied to U.S. Treasury Bonds of 5 and 10 year terms.
Subordinated mortgage in assets purchased with loan. Always requires a Personal Guarantee and key person life insurance.
Must create one new full-time job for each $35,000 of the SBA debenture within 2 years of the loan closing.

Equivalent amount to SBA portion.
At least 7 years for a 10 year debenture. At least 10 years for a 20 year debenture.
Up to bank and small business to negotiate. May be fixed or variable Must be "Reasonable".
Secured by first mortgage position with assets purchased with the loan.
No job creation requirement

Incentives to the Small Business Concern Long Term (10 or 20 years) Low down payment (10%) on fixed asset purchase Reasonable and fixed rate Loan can be prepaid with no penalty after half the term

For more information contact: The local Certified Development Company on the following page.
Currentas of: 6/96

Advantages to Financial Institutions
Private sector lenders make their own credit decisions
Improves their loan quality by providing 50% of the loan amount and receiving 100% first collateral mortgage position
Set their own rates and fees
Offers their small business customers a better dealReduced debt service, better cash flow and within individual loan limits leaves funds available for other types of financing.

continueson next page IJF

18

Georgia's Certified Development Companies
ATLANTA LOCAL DEVELOPMENT CORPORATION
Mr. Walter Huntley, Jr., President 230 Peachtree Street, NW, Suite 1650 Atlanta, Georgia 30303 (404) 658-7000 City of Atlanta Only Lonnie Saboor, Contact Person
THE BUSINESS GROWTH CORPORATION OF GEORGIA
Mr. Gordon Brad1, President 4000 Cumberland Parkway, Suite 1200-A Atlanta, Georgia 30339 (404) 434-0273 State Wide Vicki Schoen, Contact Person
CERTIFIED DEVELOPMENT COMPANY OF N.E. GEORGIA
Mr. Jim Dove, President 305 Research Drive Athens, Georgia 30610 (706) 548-3141 Chris McGahee, Contact Person
COASTAL AREA DISTRICT DEVELOPMENT AUTHORITY
Mr. James Floyd, President Post Office Box 1917, 127 "F" Street Brunswick, Georgia 31521 (912) 264-7363
CSRA LOCAL DEVELOPMENT CORPORATION
Mr. Robert Fries, President 2123 Wrightsboro Road Post Office Box 2800 Augusta, Georgia 30904 (706) 737-1823 Randy Griffin, Contact Person
SMALL BUSINESS ASSISTANCE CORPORATION
Mr. David Byck, President 31 West Congress Street Savannah, Georgia 31401 (912) 232-4700 Chatham County Only Tony O'Reilly, Contact Person

ECONOMIC DEVELOPMENT CORPORATION OF FULTON COUNTY
Mr. Edward Nelson, President 141 Pryor Street, Suite 5001 Atlanta, Georgia 30303 (404) 730-8073 Colleen Robbs, Contact Person
GEORGIA MOUNTAINS REGIONAL ECONOMIC DEVELOPMENT CORPORATION
Mr. W.L. Savage, President 1010 Ridge Road Gainesville, Georgia 30501 (707) 536-3431
HEART OF GEORGIA LOCAL DEVELOPMENT CORPORATION
Mr. Frank Radford, Jr. President 501 Oak Street Eastman, Georgia 31023 (912) 374-4771 John Lee, Contact Person
MIDDLE FLINT AREA DEVELOPMENT CORPORATION
Mr. Rufus Greene, President 228 West Lamar Street Americus, Georgia 31709 (912) 928-8729 Bobby Lowe, Contact Person
NORTH GEORGIA CERTIFIED DEVELOPMENT CORPORATION
Mr. J.L. Hufstetler, President 503 West Waugh Street Dalton, Georgia 30720 (706) 272-2300 Charles Millirons, Contact Person
OCONEE AREA DEVELOPMENT CORPORATION
Mr. C.D. Garner, MD, President Post Office Box 707 Milledgeville, Georgia 31060 (912) 453-5327

19

SOUTH GEORGIA AREA DEVELOPMENT CORPORATION
Mr. Gerald Thompson, President 327 West Savannah Avenue Post Office Box 1223 Valdosta, Georgia 31601 (912) 333-5281 Don Chauncey, Contact Person
SOUTHEAST GEORGIA
DEVELOPMENT CORPORATION
Mr. Ken Hayes 3395 Harris Road Waycross, Georgia 31501 (912) 285-6097
SOUTHWEST GEORGIA ECONOMIC DEVELOPMENT CORPORATION
Mr. Jack Brannon, President 30 East Broad Street, P.O. Box 346 Camilla, Georgia 31730 (912) 336-5617 Robert Murray, Jr., Contact Person

TROUP COUNTY LOCAL
DEVELOPMENT CORPORATION Mr. Fred Turner, President Post Office Box 357 LaGrange, Georgia 30241 (706) 883-1655 Troup County Only Alesia Nixon, Contact Person
UPTOWN INC. Mr. J.D. Kirven III, President Post Office Box 1237 Columbus, Georgia 31902 (706) 571-6057 Muscogee County Only

20

Low Doc SBA's New Quick & Easy Lending Program

QUICK SBA turnaround

Interest Rates

EASY one page SBA application
LowDoc simplifies the application process. LowDoc provides a rapid response from SBA - usually
only two or three days. LowDoc focuses on character, credit and experience LowDoc is for small business loans of $100,000 or
less. SBA guarantees up to 90 percent of the loan. The applicant completes the front of a one-page SBA
application; the lender completes the back. Lenders may require additional information from the applicant. For loans over $50,000, the applicant includes a copy of U.S. Income Tax Schedule C or the front page of the corporate or partnership returns for the past three years. Personal financial statements are required for all guarantors.
Who is eligible:

Applicants negotiate terms with the lender. Interest rates are tied to the prime rate and may be
fixed or variable; however, they cannot exceed SBA maximums: -For loans of less than seven years, up to 2.25 percent over prime; -For loans of seven years or longer, up to 2.75 percent over prime;Loans under $50,000 may be subject to slightly higher rates.
Maturity
Length of time for repayment depends on -The ability to repay and -The use of the loan proceeds; however -It may not exceed 25 years for fixed assets or 10 years for all other uses
For more information call our voice-mail system at (404) 347-2441 or visit with us at: 1720 Peachtree Road, Suite 600 Atlanta, Georgia 30309

Entrepreneurs starting or expanding a business
Businesses whose average annual sales for the preceding three years do not exceed $5 million and employ 100 or less, including affiliates.
Businesses that satisfy other statutory criteria

21

GRASP SBA MICROLOAN PROGRAM

GRASP was founded in 1986 to provide a comprehensive approach for the development and growth of small businesses. GRASP delivers practical business development services to help you succeed in today's competitive world. Our SBA Microloan Program helps you finance your business's growth and expansion.

BACKGROUND:

In May 1993, the U.S. Small ELIGffiILITY:

Business Administration Borrowers must: Participate in an intensive

(SBA) in Washington, D.C.

technical assistance program

selected GRASP as one of 51

established by GRASP before

new lenders of its Microloan

and after loans are made. This

Demonstration Program. There

may include training and/or

are 96 lenders in 44 states.

management counseling.

PURPOSE: AMOUNT: TERMS: FEES:

Loans are to assist women, low income, minority entrepreneurs, small business owners, and other such individuals possessing the capability to operate successful businesses.
The average loan is expected to be about $7,500. The amount will vary up to a maximum of $25,000 per loan.
The term is based on the type of loan, the quality of and makeup of collateral, and the needs of the borrower.The term may not exceed six years. The targeted average term is three years.
Fees will be charged for credit reports and closing costs directly incurred by GRASP. In addition, you will pay no more than $100 for pre-loan assistance before you receive a loan.

Have business plans approved by GRASP.
Be located in Clayton, Cobb, DeKalb, Douglas, Fayette, Fulton, Gwinnett, Henry, or Rockdale counties.
Have less than 10 employees. The SBA has set maximum size standards which vary from industry to industry.
Meet type-of-business eligibility requirements established by the SBA.
Comply with regulations which prohibit discrimination based on race, color, religion, sex, marital status, disability, age or national origin.

RATES:

11.625% per annum for loans of $7,500 or less, and 10.875% per annum for loans more than $7,500.

22

INELIGffiLE BUSINESSES:
The following types of businesses are ineligible for the SBA Microloan Program: Charitable and non-profit organization. However,
for-profit enterprises owned by non-profit organizations are eligible.
Media businesses, such as those dealing with the creation, origination, expression or distribution of ideas, values, thoughts or opinions. This includes theaters, specialty stores, delivery and transportation concerns limiting themselves to the sale or distribution of ineligible materials.
Academic schools, including denominational nurseries, kindergartens and pre-schools. However, technical, secretarial, vocational, and trade schools are eligible.
Floor planning concerns.
Gambling concerns. However, eligible small business concerns which derive less than 1/3 of their income from the sale of lottery tickets are eligible.
Businesses involved in speculation of any kind, including real estate, stocks, bonds or commodities.
Businesses primarily engaged in lending or invested.
Pyramid sales distribution plans.
Loans to applicants engaged in illegal activities.
Loans to persons on probation or parole, and loans to persons who have defaulted on any government obligation or any SBA guaranteed loan.

For further information contact:
GRASP Microloan Program 55 Marietta Street Suite 2000 Atlanta, Georgia 30303 (404) 659-5955 Currentas of: 11/96

USE OF PROCEEDS:
Loan proceeds may be used for working capital, inventory, supplies, furniture, fixtures, machinery, or equipment. The use of loan proceeds to purchase real estate or leasehold improvements is prohibited.

23

Entrepreneurial Development Loan Fund

BACKGROUND: PURPOSE:

The Entrepreneurial Development Loan Fund (EDLF) is a loan program of the Atlanta Business Community Development Corporation,which was formed in April, 1994as a cooperativeof the Atlanta ChamberofCornrnerce,The Atlanta Project, and six founding institutions, which have made available a total of $11.5 million. The financial institutions are Bank South, First Union, NationsBank, Trust Company,and Wachovia
To facilitate economic development, particularly in targeted Atlanta Project cluster areas by making credit available to small businesses located within those areas, particularly businesses owned by minorities and women.

USE OF PROCEEDS:
TERM:
TYPES OF LOANS:

AMOUNT:

Typically, loans range from a low of $25,000 to a maximum of $100,000, However, smaller amounts and larger amounts may be considered.

FEES:

A $100 non-refundable loan application fee and an $8 credit report fee are required. These fees must be paid when the loan application is submitted. Additional loan closing fees and charges may be required after loans are approved.

RATES:

Interest rates are competitive with bank rates.They may float with the prevailing prime rate of they may be fixed for the term of the loan. Typicallyrates will range from 2% over prime to 3% over prime.

Loan proceeds may be used for working capital, inventory, supplies, furniture, machinery or equipment. Generally, the use of loan proceeds for any legitimate business purpose is permitted.
Typically, the loan term does not exceed five years, or one year for renewable lines of credit. However, the loan term may exceed five years if needed.
The EDLF makes term loans to purchase supplies and business equipment, and to fund working capital needs, including operating expenses. The EDLF also provides lines of credit to fund contract working capital needs (i.e., payroll, materials, insurance, etc.), to finance purchase orders, to purchase inventory, or to finance accounts receivable.

24

ELIGIBILITY: To be eligible, the EDLF loan applicant must: A. Be organized as a for-profit enterprise.
B. Demonstrate management experience in your business, trade or profession.
C. Be located within the Atlanta metropolitan area.
D. Demonstrate at least a 10% equity position in the business. The equity requirement may exceed 10% based on the nature of the business, the financial condition, past or projected performance of the business, use of proceeds, or other related considerations. Generally, businesses with a negative net worth are not eligible.

TECHNICAL ASSISTANCE:

On-going business assessment and advisory services are available through the EDLF program designed to help strengthen the financial condition of the business and improve performance.

TO APPLY:

If you would like to apply for an EDLF loan, or if you would like more information about the program, please ca11659-5955 and ask for an EDLF Loan Officer.The center operates between the hours of 8:30 a.m and 5:00 p.m., Monday - Friday.

Current as of: 11/96

APPLICATION REQUIREMENTS:
A variety of information is required at the time of loan application. If all information is not available at the time of loan application, you will have one month to complete your loan package. Application requirements include, but are not limited to the following: A. Satisfactory personal credit history. B. Adequate collateral. C. Personal tax returns for three years. D. Personal financial statement on owners. E. Monthly cash flow projections for 24 months. F. Satisfactory business plan. G. Business license. H. Business checking account. I. Satisfactory bookkeeping system.
1. Business tax returns, balance sheet and income statement for three years or the start date of your business if less than three years.
K. Resumes stating related business experience of owners.

25

Small Business Investment Companies

Small Business Investment Companies (SBIC's) exist to supply equity capital, long-term loans and management assistance to qualifying small businesses. The privately owned and operatedSBIC's use theirown capitaland funds borrowed from the Small Business Administration (SBA) to provide fmancing to small businesses in the form of equity securitiesand long-termloans. SBIC's are for profit and selectsmall businessesto be fmanced within the Rules and Regulations set by SBA. Section 301(d) SBIC's (also known as Specialized SBIC's) are a specialized type of SBIC that provide assistance solely to small businesses owned by socially or disadvantaged persons.
SBIC's invest in a broad range of industries. Some SBIC's seek out small businesses with known products or services because of the strong growth potential of such firms. Some SBIC's specialize in the field in which their management has special competency. Most SBIC's,

however, consider a wide variety of investment opportunities.
Only firms defined by the SBA as "small" are eligible for SBIC financing. The SBA defines a company as small when its net worth is $18 million or less, and its average net (after tax) income for the preceding two years does not exceed $6 million. For businesses in industries for which the above standards are too low, alternative size standards are available. In determining whether a business qualifies, all of the business' parents, subsidiaries, and affiliates are considered.
Listed below are active SBIC's and Specialized SBIC's in Georgia. Other SBIC's located in other states might also be able to serve the needs of small businesses in Georgia.

Preferred Level of Investments: Investment Policy: Investment Type: Industry Preference: Geographic Preference:

Regular SBICs Cordova Capital Ralph Wright & Paul Dibella, Managers 3350 Cumberland Circle, Suite 970 Atlanta, Georgia 30339 (770) 951-1542
$1.0 - $3.0 million Equity Early Stage, Expansion Later Stage
Diversified
Southeast

Specialized SBIes Renaissance Capital Corporation Anita Stephens, President 34 Peachtree Street, N.W., Ste. 2230 Atlanta, Georgia 30303 (404) 658-9061
$300,000 Loans and equity investments Early Stage, Expansion Diversified
Southeast

For additional information contact: Don Christensen, Investment Division 409 Third Street, S.W. Washington, D.C. 20416 (202) 205-6510
Currentas of: 11/96

26

Surety Bond Guarantee Program

What is a Surety Bond?
A surety bond is a three party instrument between the surety, the contractor and the project owner, The agreement guarantees a contractor will comply with the contract and surety company assumes the risk of performance to the owner (obligee) in the event of contractor default. SBA's Surety Bond Guarantee Program enables small contractors to obtain the surety bonds necessary to compete for government and nongovernment contracts. SBA's guarantee permits a small business contractor to obtain a surety bond when the company might otherwise be unable to obtain a bond. This program makes the bonding process accessible to small and emerging contractors, thus enabling them to establish a bonded tract record.

For further information contact:
Edith Fuller SBA Surety Bond Division (404) 347-0210, ext. 20 Currentas of: 11/96

Who needs a bond?
Almost all sizable construction projects and some service contracts require bonding. The Miller Act requires prime contractors on some federal projects to post a surety bond. Many states, counties, municipalities, private sector projects and subcontractors also require surety bonds.

Who is eligible to apply for a Surety Guarantee?
Any contractor meeting SBA's size standard requirement can apply for an SBA surety guarantee. In general, a firm is classified as "small" if the company's average annual receipts over the last three fiscal years do not exceed $5 million.

Are there any guidelines concerning the Surety Guarantee?
You need to consider the following before applying: The face value of an SBA Guarantee contract cannot
exceed the sum of $1.25 million. SBA will guarantee a surety 70-90 % of the face
value of a contract depending on the program and the social/disadvantaged status of the applicant.
What costs are involved? The premium charged by the surety. An SBA charge of $6 per every $1,000 of the contract
amount (final bonds only).

27

State of Georgia Programs Offered Through the
Georgia Department of Community Affairs (DCA)
=============================== 28 =================================

Community Development Block Grant (CDBG) Program Regular Round Economic Development Program

The primary objective of the CDBG program is the expansionof economicopportunitiesin citiesand counties, principallyfor persons oflow-and-moderate income.This is accomplished by funding assistance to viable projects which cannot take place without CDBG assistance. Applicants should note that any project must create or retain jobs for low-and moderate income persons.

not required where CDBG regular round funds are used for public facilities, but the applicant community must present evidence that it cannot finance the facility without assistance. Private businesses which are the primary beneficiary under a public facility project are required to warrant their commitments to invest and create jobs with an irrevocable letter of credit.

Eligible Applicants Eligible applicants under Georgia's CDBG regular round program are cities and counties. Excluded are metropolitan cities, urban counties and other units of governments eligible to participate in the Department of Housing and Urban Development's (HUD) urban counties or metropolitan cities program. In FY '95, ineligible applicants under Georgia's program are Albany, Atlanta, Augusta, Macon, Marietta, Savannah, and Warner Robins; the Athens-Clarke County Unified Government, the Columbus Consolidated Government, Cobb County, DeKalb County, Fulton County, Gwinnett County, and any incorporated city within a HUD Entitlement Urban County which chooses to participate with the Urban County through a cooperating agreement.
Eligible Projects CDBG regular round grants may be loaned to business or used to build public facilities that make business projects possible which will create employment for lowand-moderate income persons. Generally eligible are:
1. Projects carried out by public or private nonprofit entities including:
(a) acquisition of real property; (b) acquisition, construction or rehabilitation of
public facilities,site improvementsand utilities.
2. Loans to private businesses, when assistance is necessary and appropriate to carry out an economic development project.
Grant and Loan Conditions Loans are usually made at below market rates with favorable term (but no more favorable than the minimum necessary to make the project feasible). A payback is

Maximum Funds Available Some funds from each federal fiscal year's allocation to the Department of Community Affairs (DCA) for the CDBG program will be used for the CDBG regular round program. The amount used will depend upon the number and quality of the applications received and upon the demand for funds in the areas of housing and public facilities. The maximum CDBG regular round amount that may be applied for is $500,000.
Deadline Applications for the CDBG regular round program usually must be submitted during the second quarter of each calendar year. The final deadline is announced each year by DCA, and only one competition is held each year. Awards will be announced 90 days after the receipt of applications.
Program Requirements Funding is very competitive; typically one in two
applicants is successful. To be competitive, CDBG dollars must be leveraged
at a minimum of 1private dollarto every CDBG dollar; leverage ratios of 4 to 1 are not uncommon. Job creation is a major competitive factor. Awards are contingent upon firm commitments by other financial participants. Personal guarantees and adequate collateral.
For further information contact: Brian Williamson, Assistant Director Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-1587 Currentas oj: 11/96

29

Employment Incentive Program (EIP)

General Description

County which chooses to participate with the Urban

The Employment Incentive Program (EIP) is a County through a Cooperating Agreement with the

financing program capitalized with State CDBG funds county in the HUD Entitlement Program.

that may be used by private business along with conventional private financing to carry out economic development projects which will result in employment of low-and moderate-income persons. Projects that create opportunities for low-and moderate-income persons to advance themselves by obtaining employment, greater job security, better working conditions, job training, enhancement of workplace skills and advancement opportunities receive the greatest consideration.
Eligibility Requirements
Eligible EIP activities encompass two (2) broad areas: 1. grants to local governments for the installation of
public infrastructure which will support an eligible economic development project. Eligible projects include such items as public water and sewer systems, distribution and/or collection lines, wastewater treatment projects, rail spurs, and various other types of public facilities;
2. grants to local governments who may then loan the EIP proceeds to a sub-recipient industry to finance various fixed assets which will be used in an eligible economic development project. Eligible uses for EIP loan funds include financing for a variety of fixed assets including: land, new facilities, rehabilitation of existing facilities, machinery and equipment, and some types of privately owned infrastructure.
EIP projects must always create or retain employment principally for low and moderate income persons.

Assistance Amounts The maximum EIP grant or loan amount is $250,000. Each dollar in EIP funds must leverage a minimum of one dollar in private investment.
Financing Terms Each business receiving EIP assistance must enter into a legally binding agreement with the local government spelling out performance criteria for job creation and private investment. Agreements based on EIP grants for infrastructure are backed by irrevocable stand-by letters of credit the business must supply. Projects involving direct loans are underwritten and collateralized using standard commercial loan documents. Performance criteria for job creation and investment are included in the EIP loan agreement. Equity contributions and loan to value ratios are set case by case. Loans must be fully collateralized. The interest rate and term of an EIP loan are set case by case. The average rate in 1995 was approximately 7% and terms of EIP loans ranged between 4 and 10 years depending on the assets to be financed.
Deadlines Localgovernments may submitEIP pre-applications at any time. Pre-application review takes approximately 30 days. Ifthe threshold is met, the applicant is requested to supply a finalapplication. The approvalprocesscan becompleted within 15daysof receivingan acceptablefinalapplication.
For further information contact:

Eligible Applicants
Eligibleapplicantsare generalpurposelocalgovernments located in the "non-entitlement" areas of Georgia as determined by the U.S. Department of Housing and Urban Development (HOD). Excluded from the state CDBG program are entitlement governments which receive their CDBG funding directly from the federal government. Ineligible local governments include Albany,the Athens-ClarkeCounty Unified Government, Atlanta,Augusta, Macon, Savannah,WarnerRobins, and Marietta, as well as the Columbus Consolidated Government, Cobb County, DeKalb County, Fulton County, and Gwinnett County, as well as any incorporated city within a HUD Entitlement Urban

Andy Yarn The Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-1589
Currentas of: 11/96

30

Georgia Appalachian Region Business Development Revolving Loan Fund Program (RLF)

The Business Development Revolving Loan Fund (RLF) is a $2.2 million pool of money administered by the Georgia Department of Community Affairs (DCA). DCA uses the money to allow local development authorities (LDA's) to make below market rate loans on a matching basis to qualified businesses in the Appalachian region of Georgia. The purpose of the RLF is to encourage economic development, downtown development, job creation and job retention, and the
preservation and enhancement of historic districts and other business districts.
The Appalachian Regional Commission (ARC) funds programs in the northern 35 counties: Banks, Barrow, Bartow, Carroll, Catoosa, Chattooga, Cherokee, Dade, Dawson, Douglas, Fannin, Floyd, Forsyth, Franklin, Gilmer, Gordon, Gwinnett, Habersham, Hall, Haralson, Heard, Jackson, Lumpkin, Madison, Murray, Paulding, Pickens, Polk, Rabun, Stephens, Towns, Union, Walker, White, and Whitfield counties.
Businesses Qualified to Receive RLF Funds Many businesses in the Appalachian Region potentially qualify for RLF funds, but the businesses with the greatest chance for RLF funding include manufacturing businesses, downtown businesses, and other businesses that do not compete with downtown uses.
For downtown projects, DCA will have the final responsibility for defining the boundaries of a downtown for the purposes of the RLF. Generally, the downtown area is the core of a city's central business district.
Only private, for profit businesses are eligible to receive RLF loan funds. These include new, existing, or expanding enterprises. Banks, savings and loans institutions, and finance companies are not eligible for the program. Developers may receive RLF funds if their tenants are private, for-profit businesses that are willing to commit to job creation or retention and to other programs requirements.

Eligible Uses for Loan Proceeds working capital building acquisition new construction/rehabilitation facade improvements equipment purchase & installation land acquisition
Please note that all applicable local, state, and federal laws and guidelines must be met before any activity is considered eligible and that all activities must produce positive results (including job creation or retention) for the area as well as for the business receiving financing.
Ineligible Uses of the Loan Fund assistance to relocating businesses
most refinancing displacement of private funds (i.e., projects must
demonstrate need for favorable financing)
speculative projects
Loan Amounts and Loan Terms and Conditions An applicant may apply for funds from the RLF as many times as necessary as long as the RLF does not have a loan exposure greater than $200,000 for anyone business. Total project cost may be any amount as long as the RLF financed portion of the project does not exceed 50%. Interest rates are usually two to four points below the prime rate. Loan terms normally do not exceed 5 years for working capital and 15 years for fixed assets. Interest rates may be fixed or variable, but are normally fixed. Businesses must provide at least five percent equity for their projects. Businesses must create or retain one private sector job for every $20,000 of RLF loan proceeds.

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Loan Requirements and Application Steps
meet with DCA to discuss application requirements obtain the approval of the local development
authority to act as the lender of the RLF funds (DCA can assist in helping obtain development authority review of a proposed project) complete the application and all certifications
application review by DCA's loan committee
obtain design approval from DCA and a local design review board, if applicable, before beginning any construction or rehabilitation

For further information contact: Steed Robinson Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-1585
Current as of: 11/96

Important
Past investments do not usually count toward the 50% match that must be arranged by the borrower. Beginning prior to the date of the loan committee meeting may demonstrate that favorable financing for the project is not needed.

(Note: DCA's loan committee may reject an application for any reasonable cause. Applications will normally be approved or rejected within 30 days after a completed application has been submitted.)

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Appalachian Regional Commission Infrastructure Funds

The Appalachian Regional Commission (ARC) provides federally funded infrastructure improvement grants to north Georgia cities and counties to assist in the creation of permanent jobs. Local governments must compete annually for available funds; project grants are usually $300,000 or less. Eligible counties include Banks, Barrow, Bartow, Carroll, Catoosa, Chattooga, Cherokee, Dade, Dawson, Douglas, Fannin, Floyd, Forsyth, Franklin, Gilmer, Gordon, Gwinnett, Habersham, Hall, Haralson, Heard, Jackson, Lumpkin, Madison, Murray, Paulding, Pickens, Polk, Rabun, Stephens,Towns, Union, Walker, White, and Whitfield counties.
Program Objectives The program purpose is to assist economic development of Appalachian Region counties in Georgia by:
1. requiring significant near-term job creation as a result of each project;
2. requiring that limited ARC dollars be used with projects that are most likely to be completed quickly, giving priority to projects that include substantial private investments; and
3. giving priority to projects that demonstrate the greatest need for funds.
Grant Amounts Available/Match Requirements In FY '96, Georgia received approximately $2.9 million for the program. Because of limited funds, grant amounts are available up to $300,000 for individual projects. Competition for the projects is keen and ARC normally finds up to 50% of project costs. No more than 80% of the total project cost may come from federal sources. In a number of Georgia's ARC counties, economic activity is so strong that the Commission restricts funding to 30% and in some counties may limit funding to certain types of projects. These include Cherokee, Gwinnett, Whitfield, Forsyth, Hall and Douglas counties.

Eligible Activities Most activities providing water and sewer services are eligible as long as program objectives are met by the proposed project. Projects related to the supply, storage, treatment, and transmission of water are eligible, and projects related to the collection, storage, and treatment of sewer are eligible. Education activities are presently limited to adult literacy and school drop out prevention. ARC funding for education may be as high as 80% of the total project cost.
Ineligible Activities Ineligible activities include the construction of public buildings, to include libraries, cultural centers, hospitals, schools, and general government office buildings.
Program Administration The program is administered by the Georgia Department of Community Affairs (DCA) in cooperation with the ARC. Pre-applications for the program are prepared by Regional Development Centers (ROC'S) on behalf of local governments in August of each year. DCA then works with ROC's and local governments to prepare a complete application for consideration by the Governor and ARC. Final approval for projects generally occurs in the summer of the following year after pre-application submission.
For further information contact: Phil Whitlow, ARC Administrator Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-3165
Current as of: 11/96

33

Georgia Business Expansion and Support Act Executive Summary

1. JOB TAX CREDIT
Provides for a new statewide job tax credit for any business or headquarters of any such businesse engaged in manufacturing, warehousing and distribution, processing, tourism, or research and development. Does not include retail businesses. (A detailed list of eligible businesses is provided in the program regulations. In some counties, all types of businesses are eligiblethrough 1997.)
Counties in the state are ranked annually using the following factors: 1. highest unemployment rate
2. lowest per capita income
3. highest percentage of residents whose incomes are below the poverty level
4. average weekly manufacturing wage The rankings based on these criteria provide three tiers of credits. Counties ranked 1st through 53rd are Tier 1 and
represent the state's least developed counties. Companies creating 5 or more new jobs in a Tier 1 county will receive a $2,500 tax credit per job.
Counties ranked 54th through 106th are Tier 2. Companies creating 15 or more new jobs in a Tier 2 county will receive a $1,500 tax credit per job.
Counties ranked 107th through l59th are Tier 3. Companies creating 25 or more new jobs in a Tier 3 county will receive a $500 tax credit per job.
Credits are allowed for each full-time employee job for five years in years two through six after the creation of the job if the job is maintained. Increases in jobs are calculated based on average monthly employment using 12 month periods beginning with the company tax year. The credit cannot be more than 50% of the taxpayer's total state income tax liability for any taxable year. A credit claimed but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified jobs were established.

Provides for an additional $500 per job tax credit for businesses locating or expanding within the jurisdiction of a joint authority of two or more contiguous counties. All other job tax credit requirements must be met.
2. INVESTMENT TAX CREDIT
Based on the same tiers as the Job Tax Credit program. It allows a taxpayer which has operated an existing manufacturing facility or manufacturing support facility in the state for the previous three years to obtain a credit against income tax liability for eligible expansion projects. An eligible expansion project includes investment property acquired by a taxpayer for use in the construction or expansion of a manufacturing facility in this state and is further defined by Department of Revenue Regulations. The minimum investment required is $50,000.
Companies expanding in Tier 1 counties receive a 5% credit. That credit increases to 8% for recycling, pollution control and defense conversion activities.
Companies expanding in Tier 2 counties receive a 3% credit. That credit increases to 5% for recycling, pollution control and defense conversion activities.
Companies expanding in Tier 3 counties receive a 1% credit. That credit increases to 3% for recycling, pollution control and defense conversion activities.
The credit is a percentage of the total value of all qualified investment property and cannot be more than 50% of the taxpayer's total state income tax liability for that taxable year. A taxpayer cannot take both the job tax credit and the investment tax credit for the same project unless the project creates 250 or more new jobs in a Tier 1 county between the taxable years beginning on or after January 1, 1995, and ending on or prior to December 31, 1998. Other limitations apply.

The legislation also allows a Tier 1 tax credit for less developed urban census tracts. The law requires that 30% of new hires under the urban census tract program be held by residents of a less developed census tract area or a Tier 1 county.

continues on nextpage ~

34

3. OPTIONAL INVESTMENT TAX CREDIT

Beginning January 1, 1996, taxpayers have an optional

investment tax credit with a ten- year carry forward

provision. This optional investment tax credit requires

the following minimum investment criteria:

Designated Minimum Percentage

Area Investment Tax Credit

Tier 1 $ 5 million

10%

Tier 2 $10 million

8%

Tier 3 $20 million

6%

The optional tax credit may be used for ten years, provided the investment property remains in service throughout that period. A taxpayer must choose either the regular investment tax credit or the optional one. Once the selection is made, the two credits are no longer applicable to a specific project, only the one selected.
The optional investment tax credit is calculated based upon the establishment of a three year tax liability average. The annual credits are then determined using this base year average. The credit available to the taxpayer in any given taxable year is the lesser of the following amounts: 1. ninety percent of the increase in the tax liability in
the current taxable year over that in the base year, or
2. the excess of the aggregate amount of the credit allowed over the sum of the amount of credit already used in the years following the base year.

4. RETRAINING TAX CREDIT
Employers retraining employees are eligible for a tax credit equal to 50% of the costs of retraining per fulltime employee up to $500. The training must: 1. enhance the functional skills of line and hourly
employees otherwise unable to function effectively on new equipment or with new procedures;
2. be approved by the Department of Technical and Adult Education; and
3. be providedat no director indirectcost to the employee.
The credit cannot exceed more than 50% of the taxpayer's total state income tax liability for that taxable year.

6. MANUFACTURING MACHINERY SALES TAX EXEMPTION
Provides for exemption from the sales and use tax for manufacturing equipment for:
1. machinery used directly in the manufacture of tangible personal property when the machinery is bought to replace or upgrade machinery in a manufacturing plant presently existing in the state.
2. machinery used directly in the manufacture of tangible personal property when the machinery is incorporated for the first time into a new manufacturing plant located in this state.
3. machinery used directly in the manufacture of tangible personal property when the machinery is incorporated as additional machinery for the first time into a manufacturing plant presently existing in this state.
7. PRIMARY MATERIAL HANDLING SALES TAX EXEMPTION
Provides exemption from the sales and use tax on purchase of primary material handling equipment which is used directly for the handling and movement of tangible personal property in a new or expanding warehouse or distribution facility when such new facility or expansion is worth $10 million or more. On January 1, 1997, the threshold for qualifying drops to $5 million.
8. ELECTRICITY EXEMPTION Electricity purchased for the direct use in manufacturing a product is exempt from sales taxes when the total cost of theelectricity exceeds50% of allthematerials, including electricity, used in making the product. This exemption will be phased in over five years beginning in 1995. It allows 20-40-60-80-100 percent exemptions on the sales tax and is available for new and existing firms. By 1999, electricity used in this manner will be completely exempt.
ReprinJedjrom articles createdbytheGovenwr's Development Council and the Georgia Department ofCommunity Affairs

5. CHILD CARE CREDIT
Employers who provide or sponsor child care for employees are eligible for a tax credit of up to 50% of the direct cost of operation to the employer. The credit cannot exceed more than 50% of the taxpayer's total state income tax liability for that taxable year.

35

For further information on job tax credits contact:
Lauren Brown/Steed Robinson Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-1592/(404) 679-1585

For further information on retraining tax credits contact:
Jackie Rohosky Georgia Department of Technical and Adult Education 1800 Century Place, Suite 300 Atlanta, Georgia 30345-4304 (404) 679-2901

For further information on other credits contact: Anthony Jackson Georgia Department of Revenue Room 507 270 Washington Street
Atlanta, Georgia 30334 (404) 656-4170
Current as of: 11/96

Tier 1: Lowest 53 Counties Tier 2: Counties 54-106 Tier 3: Counties 107-159

Loans For Rural Industry

Summary
The Loans for Rural Industry (LFRI) program offers low-cost, medium-term financing to businesses located or expanding into Georgia's rural areas. LFRI loans may be made to businesses engaged in manufacturing, production, warehousing, distribution and other types of "value-added" activities. Loans range in size from $10,000 to $150,000 and carry a 50% matching investment requirement. The LFRI program is available through the Georgia Housing and Finance Authority (GHFA) with capital provided by Rural Development, a division of the United States Department of Agriculture.
Available Financing
The central focus of the LFRI program is to encourage job creation and preservation by helping to meet the financing needs of Georgia's small to medium-size existing businesses. These loans may also be used to finance the establishment of new businesses. LFRI loans carry a fixed interest rate. The actual rate is set at closing and will be less than the prevailing prime rate. Loan terms range from one to seven years with fixed monthly payments. At least 10% of the total number of jobs created or retained as a result of an LFRI financed project must go to persons of low or moderate income.
Program Costs
Application fee of $250, payable upon application. Facility fee of 1% of the amount borrowed, payable
at closing. This fee may be financed as a part of the LFRI loan.
Closing and related costs, payable at closing. These costs may be financed as a part of the LFRI loan.
Interest rate below prime, fixed at closing.

Construction, expansion or modernization. Purchase and development of land, easements, or
rights of way. Purchase of equipment, machinery or supplies. Pollution control or abatement. Acquisition or conversion of a business where there
is a strong possibility of that business closing or relocating. Feasibility studies, loan packaging, environmental data collection, and other professional services. -Limited agricultural purposes, including aquaculture, forestry, livestock and poultry processing, mushroom cultivation, and hydroponics.
LFRI funds may not be used for the following purposes:
Agricultural production. Lines of credit. Commercial retail enterprises or tourist facilities. Charitable institutions. Refinancing.
How to Apply
Businesses considering a project that may be suitable for financing through the Loans for Rural Industry program are encouraged to contact Larry Warner or John Kingery at (404) 679-1590. Correspondence should be addressed to the Department of Community Affairs, 60 Executive Park South, N.E., Atlanta, Georgia 30329-2231.

Project Eligibility
The program is targeted to businesses located or seeking to locate outside the state's major metropolitan areas. LFRI loans may not be made within cities with a population exceeding 25,000. Population of a city is based on the 1990 Census. LFRI funds may be used for the following purposes:

37

Incentive Loans For Industry

Summary
The Incentive Loans for Industry (ILFI) program offers low-cost, medium-term loans to businesses engaged in manufacturing, production, warehousing, distribution and other types of "value added" activities. Loan amounts can range from a minimum of $20,000 to a maximum of $300,000. At least a two to one ratio of direct private investment to the ILFI loan will be required of the borrowers. As an example, a $150,000 commitment will leverage a project costing at least $450,000. The ILFI fund is capitalized at $2 million. These funds were provided in equal amounts by the State of Georgia and the Economic Development Administration to the Georgia Housing and Finance Authority (GHFA).
Available Financing
The central focus of the ILFI program is to encourage job creation and preservation by helping to meet the financing needs of Georgia's small to medium-size existing businesses. Loan proceeds may be used for building acquisition or expansion, land, leasehold improvements and equipment purchases. Loans will have a term that closely matches the life of the asset financed with a loan term ranging from one year to ten years. The interest rate is fixed at the time of the loan closing and will be less than the prevailing prime lending rate. Loans are collateralized, and GHFA may be in a shared position with a private lender.
Program Costs
Application fee of $250, payable upon application. Facility fee of 1% of the amount borrowed, payable
at closing. This fee may be financed as a part of the ILFI loan. Closing and related costs, payable at closing. These costs may be financed as a part of the ILFI loan. Interest rate below prime, fixed at closing.
Project Eligibility
Qualified businesses located or seeking to locate in counties identified by the U.S. Economic Development Administration as "economically distressed" as well as counties declared to be disaster areas by the state or federal government are eligible to apply for ILFI

financing. ILFI loans are made by GHFA directly to private industries. Prospective borrowers must comply with all applicable federal statutory and regulatory requirements. No ILFI funds may be used to relocate jobs from one labor market to another. A borrower is not eligible for ILFI financing if suitable credit arrangements are available elsewhere. An exception to this requirement entails using ILFI financing as an incentive for attracting new business or business expansion.

How to Apply

Businesses considering a project that may be suitable for financing through the Incentive Loans for Industry program are encouraged to contact Larry Warner or John Kingery at (404) 679-1590. Correspondence should be addressed to the Department of Community Affairs, 60 Executive Park South, N.E., Atlanta, Georgia 30329-2231.

Eligible Counties

Appling

Dade

Atkinson

Decatur

Bacon

Dodge

Baker

Dooly

Barrow

Dougherty

Ben Hill

Early

Bibb

Echols

Brantley

Elbert

Brooks

Emanuel

Bryan

Evans

Bulloch

Fannin

Burke

Floyd

Butts

Franklin

Calhoun

Fulton

Camden

Gilmer

Candler

Grady

Charlton

Greene

Chattahoochee Hancock

Chattooga

Haralson

Clay

Heard

Clinch

Irwin

Coffee

JeffDavis

Colquitt

Jefferson

Cook

Jenkins

Crawford

Johnson

Crisp

Lanier

Liberty Long Macon Madison Marion McDuffie McIntosh Meriwether Miller Mitchell Montgomery Morgan Muscogee Oglethorpe Peach Pierce Polk Quitman Randolph Schley Screven Seminole Stewart Sumter Talbot Taliaferro

Tattnall Taylor Telfair Terrell Thomas Toombs Treutlen Turner Twiggs Union Walker Walton Ware Warren Washington Wayne Webster Wheeler Wilcox Wlikinson Worth

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Tax-Exempt Industrial Development Bond Financing

For businesses seeking long-term, low-interest rate financing for the construction or improvements of manufacturing facilities, Industrial Development Bond (IDB) financing is available both at the state and local levels. IDB financing is typically structured as public sales in the nation's bond markets or sold as private placements with interested investors. In the case of publicly sold IDB's, credit enhancements in the form of letters of credit is often provided by local banks, insuring that a favorable interest rate to the borrower will result from the sale of bonds. Interest rate may be fixed or variable.

For further information contact: Bobby Stevens Georgia Department of Community Affairs 60 Executive Park South, N. E. Atlanta, GA 30329-2231 (404) 679-4943
Current as of: 11/96

Advantages
Below-market interest rate financing generated through the sale of tax-exempt bonds.
Long-term, low-payment financing, with term matched to the useful life of the assets financed.
Comprehensive use of funds for manufacturingrelated improvements, including purchase of land, construction or purchase and renovation of buildings, and purchase of new equipment.
Up to $10 million available for each eligible project.

Disadvantages
State and federal limitations placed on lOB financed projects remain in effect until the bonds are retired.
Issuance costs may limit the attractiveness of IDB financing for amounts below $3 million.
How It Works
The borrower applies to a local development authority (LDA) for an inducement of the project.
The LDA holds a public hearing in the jurisdiction where the project will be built.
The borrower's creditworthiness is analyzed and appropriate credit enhancement is arranged.
Bonds are issued and sold, proceeds of the sale are disbursed to the borrower as a loan, and issuance fees are paid. (Up to 2% of issuance costs may be financed through a IDB sale.)
Credit standards for IDB borrowers vary according to issuing authority and type of issuance: Public placement through local issuer:
Borrower must meet minimum debt standards for the bonds.

39

Office ofRural Development and Management Assistance

General Description & Programs

Rural Development Groups

The Office of Rural Development and Management Assistance, a unit of the Department of Community Affairs' Planning and Management Division, is responsible for providing development, referral and technical assistance to local governments and other clients. Specific responsibilities include the arrangement and coordination of training and/or the provision of management (and limited legal) assistance in functional areas such as local government operations and community development. The activities of the Office are focused on promoting and facilitating statewide implementation of the comprehensive planning process, including work with communities which have approved comprehensive plans. The unit is also responsible for administering a contract for technical assistance in the provision of safe drinking water; and administering a grant program which promotes local government efficiency and effecti veness.
Local Government Efficiency Grant Program
Total Funding Level: $500,000for fiscal year 1997 (July 1, 1996 - June 30, 1997)

DCAAdvisory Committee on Rural Development
The DCA Advisory Committee on Rural Development, appointed by the Commissioner of Community Affairs, advises the Board of Community Affairs on policy issues and other matters affecting rural development. The group meets periodically (3 times per year).
Interagency Rural Development TaskForce
The Interagency Rural Development Task Force is a staff-level informal, infor- mation-exchange & networking interest group. Staffed by the Department of Community Affairs' Office of Rural Development and Management Assistance, this group is assembled in January, May and September to: "show and tell" information regarding new and/or existing program changes; discuss new funding or technical assistance resources/services; share announcements and other information which would be of interest regarding rural development. Participation includes representation from federal and state agencies or development organizations of the public/private sectors.

Maximum Amount per Jurisdiction: Grant award limits are periodically set by the Department. For fiscal year 1997 the maximum awards are $15,000 for Efficiency Assessment Grants; $20,000 for Consolidation Planning Grants; $35,000 for combined Efficiency Assessment! Consolidation Planning Grants; up to $50,000 for single function Consolidation Implementation Grants; up to $100,000 for multiple function Consolidation Implementation Grants; and up to $250,000 for complete unit consolidation grants. Requires local match of 25% of total project cost. For More Information: Tina Barron (404) 679-3111.

For more general information contact:
Winfred E. Owens Georgia Department of Community Affairs 60 Executive Park South, N.E Atlanta, Georgia 30329-2231 (404)679-4859 Fax (404) 679-Q646

Southeast Rural Community Assistance Project
The project promotes the provision of safe drinking water in communities throughout the State. Technical Assistance is provided by a consultant under contract; training is arranged and coordinated by staff. For More Information: Cynthia Easley (404) 679-4789.

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The Georgia Environmental Facilities Authority (GEFA)
=================================== 41 ====================================

The Georgia Environmental Facilities Authority (GEFA), created by the Georgia General Assembly, assists local governments in constructing and rehabilitating water, sewer and solid waste facilities necessary for public purposes and for commercial, residential, and industrial development. GEFA assists local governments by loaning funds at reduced interest rates for the purposes described.
Water and Sewer Regular Loan Program

Eligible Applicants

Deadline

Cities, counties, and water and sewer authorities in the State of Georgia.
Program Requirements
Demand exceeds the supply of funds. No application, closing or administrative fees. Simple interest loans with no prepayment penalties.
Loan Conditions
The interest rate charged is based on the rate of the most recent sale of Georgia's general obligation bonds. The maximum loan term is 20 years.

Availability is on a first-come, first served basis.
For further information contact:
Paul Burks, Executive Director or Dan Clarke, Program Manager Georgia Environmental Facilities Authority 2090 Equitable Building > 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-0940

Maximum Funds Available

Each year, funding for the program varies by legislative appropriation. In 1996, $20 million in general obligation bonds were sold in order for proceeds to be loaned to local governments. Additional funds are provided from the repayment of outstanding loans. Currently, the maximum amount of funds that can be loaned to one community is $2 million. Multiple projects may be submitted and funded.

42

Recycling and Solid Waste Facilities Loan Program

Eligible Applicants

Deadlines

Georgia local governments and authorities wanting to finance recycling and solid waste management facilities.
Eligible Projects
Compo sting and/or recycling proposals will receive a high rating for these loans. Other eligible proposals would include capital outlay types of projects, such as, but not limited to: materials recovery facilities and recovered materials processing facilities; municipal solid waste landfills and other such systems or facilities. The more counties included in the proposal, the higher rating it will receive in the rating system.

Applications are accepted on a first come, first served basis.
For further information contact:
Paul Burks, Executive Director or James Thompson, Program Manager Georgia Environmental Facilities Authority 2090 Equitable Building> 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-4046.

Loan Conditions

The interest rate is expected to approximate the rate of State issued general obligation bonds. The maximum loan term is 20 years.

Maximum Funds Available

This loan program has a maximum of $1 million per loan for recycling and solid waste management needs.

43

State Revolving Loan Fund

Eligible Applicants

Deadlines

Cities, counties, and water and sewer authorities in the State of Georgia.
Eligible Projects
Funds may be used to construct any number of projects including treatment plants; pumping stations, collector sewer lines, interceptors, sewer line replacement and/ or repairs and remedies for non-point source pollution problems.
Loan Conditions
An interest rate of 4% is charged and the maximum loan term is 20 years or the design life of the facility, whichever is shorter.The program pays for construction, engineering, planning, and design cost. Because the source of funds is federal, the projects must include facility planning, environmental review, public participation, project inspection, and minority/women's business participation.

Local governments and/or Water and Sewer Authorities must be on a list of potential loan recipients. Inclusion on the list does not obligate a community to participate further in the application process. Once on the list, project applications are accepted year round until all funds are obligated. Projects are ranked on a point system that considers such factors as environmental need, readiness to begin construction, water quality and health. Viable projects are invited to submit a financial loan application.
For further information contact: Paul Burks, Executive Director or Gregory Mason, SRF Project Manager Georgia Environmental Facilities Authority 2090 Equitable Building 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-3824.

Maximum Funds Available

Loans are limited to $13 million with a 4% closing fee. This fee can be amortized into the loan amount. In 1996, $34 million was made available to Georgia from the u.S. Environmental Protection Agency.

44

Clean Fuels Grant Program

The Clean Fuels Grant Program is available to local governments and authorities throughout the State of Georgia to facilitate the introduction and expansion of fleet operations into the use of clean alternative fuels.
Local governments and authorities must have a demonstrated commitment to the use of clean alternative fuels. They are eligible to apply for the grants to pay the differential costs between vehicles dedicated to the use of clean alternative fuels and conventionally fueled vehicles, as well as for infrastructure improvements to facilitate the use of clean alternative fuels.
Eligible Applicants
Local governments and authorities throughout the State of Georgia.

Deadlines
Applications must be received between August 1, 1996, and September 30, 1997. Grants will be made until available funds are exhausted. Applications will be reviewed in the order in which they are received. Facsimile copies will not be accepted or considered for funding.
For further information contact: Paul Burks, Executive Director or Elizabeth Sparrow-Robertson, Program Manager Georgia Environmental Facilities Authority 2090 Equitable Building> 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-3887

Local governments and authorities must have a demonstrated commitment to the use of clean alternative fuels.

Eligible Projects

The program was created to facilitate the introduction and expansion of fleet operations into the use of clean alternative fuels. Funds are available to pay the differential costs between conventionally fueled vehicles and clean alternative fueled vehicles, as well as infrastructure improvements to facilitate the use of clean alternative fuels.

Grant Conditions

Vehicles must operate full time on the clean alternative fuel.

Maximum Funds Available

The maximum grant amount is $50,000.

45

Recycling and Waste Reduction Grant Program

Eligible Applicants
Cities, counties and solid waste management authorities that wish to establish recycling or waste reduction programs or enhance existing ones. The purpose of the program is to help foster an integrated approach to solid waste management.
Eligible Projects

For further information contact: Paul Burks, Executive Director or James Thompson, Program Manager Georgia Environmental Facilities Authority 2090 Equitable Building- 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-4046

Recycling, composting, and other integrated solid waste management programs are eligible. Equipment, building, facilities and other capital costs are eligible for grant funding.

Maximum Funds Available

Grants of up to $500,000 are available through this program.

Deadlines

Applications are accepted on a first come, first served basis.

46

Emergency Loan Program

Eligible Applicants
Georgia local governments and authorities wanting to finance emergency situations that have occurred within the last eighteen months that could threaten the community's health or safety.
Eligible Projects

For further information contact: Paul Burks, Executive Director or James Thompson, Program Manager Georgia Environmental Facilities Authority 2090 Equitable Building> 100 Peachtree Street, N.W. Atlanta, Georgia 30303 (404) 656-4046.

A water supply/quality project may be designated as an emergency if existing facilities fail or are destroyed by a natural disaster or accident, and lack of such facilities contribute to actual or potential public health hazards or violations of environmental regulations. A certification by a local health authority of a public health or environmental threat or emergency to the community must be provided to GEFA.

Loan Conditions

The interest rate is 2%. The maximum loan term is 10 years.

Maximum Funds Available

This loan program has a maximum of $100,000 per community. The GEFA Emergency Loan Program does not require matching funds.

Deadlines

Applications are accepted on a first come, first served basis.

47

Georgia Department of Natural Resources
==================================== 48 =====================================

State Historic Preservation Tax Incentives

During its 1989 session, the Georgia General Assembly passed a preferential property tax assessment program for "rehabilitated historic property." This incentive program is designed to encourage rehabilitation of both residential and commercial historic buildings that might otherwise be neglected. These rehabilitated buildings not only increase property values for owners, but eventually increase tax revenues for local governments.

Rehabilitated Historic PropertyTaxAssessmentFreeze:
The law provides an owner of historic propertywhich has undergone substantial rehabilitation an eight-year freeze on property tax assessments. For the ninth year, the assessment increases by 50% of the difference between the recorded first year value and the current fair market value. In the tenth and following years the tax assessment will then be based on the current market value.
The preferential assessment and classification of rehabilitated historic property include the rehabilitated building, and not more than two acres of real property surrounding the building.

To Be Eligible:
The property must be listed or qualify for listing in the Georgia Register of Historic Places or the National Register of Historic Places, either individually, or as a contributing building within a historic district.
The property owner must have begun rehabilitation work after January 1, 1989.
Work must meet rehabilitation standards and be completed within two years.

Requirements for Preferential Assessment:

The rehabilitation project must meet a substantial rehabilitation test. The county tax assessor makes this determination. If the property is:

Residential: Mixed-use:

(owner-occupied residential property) - rehabilitation must increase the fair market value of this building by at least 50%. (primarily residential and partially income-producing property) rehabilitation must increase the fair market value of the building by at least 75%.

Commercial (income producing property)-

and

rehabilitation must increase the fair

Professional market value of the building by at

Use:

least 100%.

The property owner must obtain preliminary and

final certification on the project from the Historic

Preservation Division (HPD) of the Georgia

Department of Natural Resources (DNR).

Rehabilitation must be in accordance with DNR's Standards for Rehabilitation.

Certification Process:
This incentive program is carried out by the Historic Preservation Division of the Georgia Department of Natural Resources and by your county tax assessor. The application process has two parts. Part A (preliminary certification) documents that the building is historic property and that the proposed work meets the DNR standards. Part A preferable should be filed before the work begins. Part B (final certification) documents the finished work.

The DNR-approved Part A application must be filed with the county tax assessor to begin the assessment freeze period. From that filing date, an applicant has 24 months to complete the work and file an DNRapproved Part B application with the county tax assessor to continue the property assessment freeze.
HPD can provide technical assistance and encourage early communication with our office. Additional information, tax application forms, and instructions are available from HPD upon request.
Please Note: The Historic Preservation Division of DNR serves as the state historic preservation office. Working in partnership with the U.S. Department of the Interior, the state preservation office carries out the mandates of Georgia law and the National Historic Preservation Act, as amended, and works with local communities to preserve the historical, architectural and archaeological resources of Georgia. For more information on Georgia's historic preservation programs, contact the Historic Preservation Division (HPD) at (404) 656-2840.

Current as oj: 11/96

49

Twenty Percent Investment Tax Credit

The twenty percent (20%) investment tax credit (lTC), also called the rehabilitation (rehab) tax credit, is an economic incentive that encourages the rehabilitation and reuse of historic buildings for business purposes. Because most qualifying buildings will be found in downtown areas, the credit also is an incentive that promotes downtown revitalization.
Georgia has several thousand buildings that are eligible or potentially eligible for this tax credit. These will be found in cities of all sizes in all parts of the state. The majority will be found within downtown historic districts.
How It Works
The credit helps to make historic building reuse projects economically feasible by providing a method to attract equity investments in those projects. Once sufficient equity is in place, it becomes possible to find debt financing to complete a project.
The rehab tax credit provides a dollar for dollar reduction of Federal income taxes due for those taxpayers (equity investors) who can use the credit. (Not all taxpayers can benefit from this credit.) The amount of the credit is equal to 20% of the qualifying costs of rehabilitating a historic building for income producing purposes. Acquisition costs and cost of building enlargements are not eligible.

How Are Projects "Certified?"
Certification requests should be made through the Historic Preservation Division (HPD) of the Georgia Department of Natural Resources. The HPD can assist you with certification procedures for both the building and the rehabilitation work. The National Park Service (NPS) also reviews projects under this program. NPS makes final decisions in the certification process.
Please note: This information sheet provides only general guidance regarding the 20% investment tax credit. Professional tax advisors or legal counsel should be consultedfor detailed information.
For further information contact:
Angie Edwards, Tax Incentive Coordinator Historic Preservation Division 500 The Healey Building 57 Forsyth Street Atlanta, Georgia 30303 (404) 656-2840 Current as of: 11/96

To Be Eligible For The 20% Tax Credit:
The building must be listed in the National Register of Historic Places, either individually or as a contributing building within a historic district.
The project must meet the "substantial rehabilitation test," where the amount of money to be spent on the rehabilitation is greater than the adjusted value of the building and is at least $5,000. Generally, projects must be finished within two years.
After the rehabilitation, the building must be used for an income-producing purpose for at least five years.
The rehabilitation work itself must be done according to The Secretary of the Interior's Standard for Rehabilitation. These are common-sense guidelines for appropriate and sensitive rehabilitation.

so

United States Department ofAgriculture (USDA) Rural Development (RD)
========================================== 51 ==========================================

Georgia Intermediary Relending Program

Rural Development (RD) is an agency of the United States Department of Agriculture. The purpose of the Intermediary Relending Program (IRP) is to finance business facilities and community development projects in rural areas. This is achieved through loans made by RD to intermediaries. The intermediaries relend the funds to ultimate recipients for business facilities or community development. Intermediaries establish revolving loan funds, so that collections from loans made to ultimate recipients, in excess of necessary operating expenses and debt payments, will be used for more loans to ultimate recipients.
WHO MAY BORROW?

opportunities, saving of existing jobs, or community development projects.
WHAT ARE THE LOAN TERMS? Loans to intermediaries are scheduled for repayment over a period of up to 30 years. The term ofloansfrom intermediaries to ultimate recipients is set by the intermediary.
WHAT IS THE INTEREST RATE? The interest rate on loans to intermediaries is one percent per annum. The interest rate charged to ultimate recipients is set by the intermediary.

Intermediaries may be private nonprofit corporations, public agencies, Indian groups or cooperatives.
Intermediaries must: Be bonded. Have legal authority to carry out the proposed loan
purposes and to incur and repay the debt.

IS COLLATERAL REQUIRED?
Yes, all loans to intermediaries must be adequately secured. Intermediaries are asked to provide a proposal for securing the loan, for RD's consideration, in addition to the application. Intermediaries are also required to provide written policies for loans to ultimate recipients.

Have a record of successfully assisting rural business and industry, normally including experience in making and servicing commercial loans.
Provide adequate assurance of repayment.
Any type of legal entity, including individuals and public and private organizations, may be an ultimate recipient.
At least 51 percent of the owners or members of both intermediaries and ultimate recipients must be United States citizens or admitted for permanent residence. Both intermediaries and ultimate recipients must be unable to obtain the proposed loan elsewhere at reasonable rates and terms.

IF THE ULTIMATE RECIPIENTS FAIL TO REPAY THE LOANS FROM THE INTERMEDIARY, WHAT HAPPENS TO THE INTERMEDIARIES LOAN FROM RECD?
When the intermediary accepts the IRP loan, it is incurring a debt, just as if it obtained a loan from a bank. It is hoped and expected that the collections from the loans to ultimate recipients will be sufficient to repay the RD loan on schedule. However, even if the collections from ultimate recipients are not sufficient, the intermediary is fully responsible for repaying RD.
WHERE SHOULD APPLICATIONS BE FILED?

HOW MAY FUNDS BE USED?
All of the IRP loan funds received by an intermediary must be reloaned to ultimate recipients. Interest income and fees may be used for administrative costs, technical assistance to borrowers, or debt retirement. All collections from the operation of the IRP revolving loan fund that are not used for the above authorized expenses, must be made available for relending to eligible intermediaries to ultimate recipients must be for the establishment of new businesses, the expansion of the existing businesses, creation of employment

Complete applications should be sent to: Rural Business and Cooperative
Development ServicelUSDA Room 6321 South 14th and Independence Avenue, S.W. Washington, D.C. 20250 (202) 690-4100
continues on next page ~

52

WHAT SHOULD BE INCLUDED IN AN APPLICATION?
Anyone interested in applying for an IRP loan should obtain a copy of the IRP regulations (FmHA Instruction 1948-C) from an RD office. The regulations contain detailed instructions for completing an application.

WHERE CAN ADDITIONAL MATERIAL BE OBTAINED? Additional information, copies of the regulations and forms may be obtained by contacting the RD State Office in Athens, Georgia, (706) 546-2171.
Current as 0/: 11/96

53

Georgia Rural Business Enterprise Grants

The Rural Development (RD) is an agency of the U.S. Department of Agriculture. This is a grant only program of RD used to support development of small emerging private business enterprises in rural areas. Rural areas include all territory of the state not within the outer boundary of any city having a population of 50,000 or more and its immediately adjacent urbanized and urbanizing areas with a population density of more than one hundred persons per square mile. Small and emerging private businesses generally will employ 50 or less new employees and have projected gross revenuesof less than $1,000,000.
These grants can be made to public bodies and private nonprofit corporations that serve rural areas. When funds are limited, applications will be scored and ranked for funding based on RD established priorities related to population, economic conditions, experience, commitment of business or industry to the location, substantial commitment of non-feral funds to the project, and existence of certain unusual conditions.
These grant funds may be used to finance and develop small and emerging private business enterprises in rural areas including but not limited to the following: 1. Acquisition and development of land, easements, and
rights-of-way.
2. Construction, conversion, enlargement, repairs or modernization of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities, and pollution control and abatement facilities.
3. Loans for start-up operating cost and working capital.
4. Technical assistance for proposed grantee projects. 5. Reasonable fees and charges for professional services
necessary for the planning and development of the project including packaging.
Services must be provided by individuals licensed through an appropriate state accreditation association.
6. Refinancing of debts exclusive of interest incurred by or on behalf of an association before an application for a grant when all of the following exist: A. The debtswere incurredfor the facilityor part thereof or serviceto be installedor improved with the grant B. Arrangements cannot be made with the creditors to extend or modify the terms of the existing debt.
7. Providing financial assistance to third parties through a loan.

8. Training, when necessary, in connection with technical assistance.
9. Production of television programs to provide information on issues of importance to farmers and rural residents.

These grant funds cannot be used:
A. To produce agriculture products through growing, cultivation, and harvesting either directly or through horizontally integrated livestock operations except for commercial nurseries, timber operations, or limited agricultural production related to technical assistance projects.
B. To finance comprehensive planning. This does not preclude using grant funds to plan a given project.

C. For loans by grantees when the rates, terms and charges for these loans are not reasonable or would be for purposes not eligible as described above.
D. For programs operated by cable television systems.
E. To fund a part of a project that is dependent on other funding unless there is a firm commitment of other funding to ensure project completion.
If the grant funds are to be used to provide financial assistance to third parties either through revolving loans or lease of facilities by grantee; at lease 51 percent of the outstanding interest in the project must have membership or be owned by those who are either citizens of the United States or reside in the United States after having been legally admitted for permanent residence.

Application should be made at the RD District Office. The District Office staff will be glad to discuss services available from the RD and explain how to prepare a written application.

Georgia has District Offices in: Cartersville 404-386-3393

Waynesboro 706-554-7001

Athens

706-546-2471

Tifton

912-382-0273

Macon

912-752-8121

Baxley 912-367-3603

Currentas of: 11196

54

Georgia Business and Industry Guaranteed Loan Programs

Rural Development (RD) is an agency of the United States Department of Agriculture. The purpose of the Business and Industry (B&I) guaranteed loan program of RD is to improve, develop, or finance business, industry and employment in an effort to favorably impact the economic and environmental climate of rural communities. This purpose is achieved by guaranteeing quality loans made by private lenders which will provide lasting community benefits. These loans may be made in areas outside the boundary of a city of 50,000 or more in population and its immediate adjacent urbanized areas with a population density of no more than 100 persons per square mile. Priority is given to communities, and towns of 25,000 and smaller.
The guarantee is a vehicle whereby a local lender can extend its legal lending limits by the portion of RD's guarantees. RD can provide up to a 90 percent loan guarantee, although the guarantee normally does not exceed 80 percent. The loans are limited to a maximum of $10 million.
B&I loan funds may be used in developing or financing business or industry, increasing employment, and controlling or abating pollution. Within this framework, uses include, but are not limited to: Financing business and industrial construction,
conversion, acquisition, and modernization.
Financing the purchase and development of land, easements, equipment, facilities, machinery, supplies, or materials.
Supplying working capital.
Financing housing development sites.
Financing processing and marketing facilities. Providing start-up and working capital.
Controlling pollution.
B&I Funds may not be used for the following purposes: Any project likely to result in the transfer of business
or employment from one area to another.
Any project likely to cause production that exceeds demand.
Any project involving transfer of ownership unless this will keep a business from closing, prevent the loss of jobs in an area, or provide more jobs.
Paying a creditor more than the value of the collateral.
Guarantee of lease payments.

Payment of loan proceeds to owners, partners shareholders, or others who retain any ownership in the business.
Corporations and businesses that are not owned and controlled by U.S. citizens.
Agricultural production.
Charitable and educational institutions.
Churches or church-sponsored organizations.
Fraternal organizations.
Hotels, motels, and tourist homes, and convention centers.
Tourist, recreation and amusement facilities.
The B&I guaranteed loan funds may be used for real estate purposes, machinery and equipment, and working capital. Final maturity will not exceed 30 years for land, buildings, and permanent fixtures; 15 years for machinery and equipment or useful life of the machinery and equipment whichever is less; and 7 years for working capital. The interest rate is negotiable between the lender and borrower and is subject to RD's review and approval. It may be either fixed or variable.
The applicant will be required to provide sufficient cash or other assets to provide reasonable assurance of a successful project. A minimum of 10 percent tangible balance sheet equity is required. Balance sheet equity of at least 20-25 percent will be required for new businesses, and businesses without full personal or corporate guarantees.

Applicants and lenders jointly file an application with the appropriate RD District Office. A fee of 2 percent will be paid to RD by the lender based on the guaranteed portion of the loan.

Georgia has District Offices in:

Cartersville

404-386-3393

Athens

706-546-2471

Macon

912-752-8121

Waynesboro

706-554-7001

Tifton

912-382-0273

Baxley

912-367-3603

Georgia State Office 706-546-2171

Current as of: 11/96

55

Financing For Small Municipal and Rural Community Facility Projects

Rural Development (RD) is an agency of the United States Department of Agriculture. Guaranteed Loans and Direct Loans are available through RD.
Rural communities and small incorporated towns/cities not larger than 20,000 based on the latest decennial population census of the United States are eligible to apply.
To qualify applicants must be unable to obtain the financing form other sources and/or their own resources at rates and terms they can afford.
Public bodies and nonprofit corporations can be eligible applicants.
Funds can be used for construction, land acquisition, legal fees, architect fees, capitalized interest, equipment, initial operation and maintenance costs, project contingencies, and any other cost that is determined by RD to be necessary for the completion of the project. The attached list shows many of the kinds of projects that can be financed with Community Facility loans.

Interest Rates:

Guaranteed Loans

As negotiated by private lender and applicant and determined by RD to be reasonable. May be a fixed or floating rate.

Direct Loans*

Three categories (Two percent increase in interest rate may be assessed when project is built on prime farmland. This can be waived for public bodies when there are no suitable alternate sites.)

Market Rate: Available to applicants whose Median Household Income (MHI) of service area is greater than the non-metropolitan MHI of Georgia ($30,974).

Intermediate Rate: Available to applicants whose MHI is not more than the non-metropolitan MHI ($30,974) of Georgia and who otherwise do not qualify for the poverty rate.

Poverty Rate: Availableto applicantswhose MHI is below
the latest established nationwide poverty level MHI ($15,600)or below 80 percentof the non-metropolitan MHI of Georgia (80% of $30,974 = $24,779) and there are existing health/sanitation conditions that would be alleviated with the proposed project so as to comply with regulatory agencies' established standards. The health! sanitationprovisionsdo not apply to healthcare and related facilities that provide direct health care to the public.

Rates are subject to change quarterly (January 1,April 1, October 1). The market rate is based on the performance of the Bond Buyer Index. The intermediate rate is set halfway between the poverty and market rates but not to exceed 7 percent. Rates are fixed and the maximum rate is established at the time the loan is approved. If rates drop by the time the loan is closed, the applicant is afforded the opportunity to receive the lower rate.

Present Rates:
Repayment Terms:
Security Public Bodies Non-Profit Corporations

Check with RD
area representatives.
Up to 40 years for both direct and guaranteed loans based on applicant's authority and life expectancy of the system. Guaranteed and Direct Loans: Revenue Bonds, General Obligation Bonds, Special Assessment bonds. Promissory Notes, Real Estate Mortgages, Financing Statements, Security Agreements, Security instruments for guaranteed loans must be taxable issues.

*Two percent increase in interestrate may be assessed whenprojectis built on prime
farmland. This can be waivedfor public bodies when there are no suitablealternate sites.
56

continues on next page S'

Maximum Amounts:

Direct Loans

may be obtained for 100 percent of eligible project costs subject to adequate security, ability to repay, applicant's authority to borrow, and availability of funds.

Guaranteed Loans

same as for direct loans as determined by private lender and approved by RD. However, the RD guarantee cannot exceed 90 percent of the loan and the Agency normally prefers that it not exceed 80 percent.

There are no RD grant funds available to supplement RD Community Facility loan funds.
Eligibility of an applicant can be determined by filing a pre application package with the appropriate RD District Office. Eligible applicants will be invited to file application dockets subject to the availability of funds. Personnel will directly assist the applicant in the preparation of the loan/grant application docket. After eligibility is determined but prior to the development of the application docket, we must be able to satisfactorily:

1. reviewand approvethe preliminaryarchitectural report.
2. review and approve the architectural agreement.
3. complete the environmental review and assessment of the project impact on the human environment to include the applicant's required advertisements and notification to interested parties.
4. any other item that is related to the above three items or is pertinent in being able to determine project feasibility.
Application should be made at the RD District Office. The District Office staff will be glad to discuss services available from the RD and explain how to prepare a written application.

Georgia has District Offices in:

Cartersville Athens Macon

404-386-3393 706-546-2471 912-752-8121

Waynesboro Tifton

706-554-7001 912-382-0273

Baxley

912-367-3603

Georgia State Office 706-546-2171

TYPES OF SERVICE Community Health Care (in conjunction with the Department of Health and Human Services) Cultural & Educational
Energy Transmission & Distribution

TYPE OF FACILITY
Dental Clinic Nursing Home Outpatient Care Physicians Clinics
All Purpose Building - College Campus Educational Camp for PhysicallMentally Handicapped Library Museum Nursery School Open Air Theater Public School School Maintenance & Equipment Service Center Senior Citizen Center Vocational School
Electrical Equipment Maintenance Building Electrical Service Low Head-Hydroelectric Plants Natural Gas Distribution

57

TYPES OF SERVICE Fire Rescue & Public Safety Health Care Other Facilities
Public Building & Improvements
Transportation

TYPE OF FACILITY
Civil Defense Building Communications Center Fire Department, Fire Trucks Jail Mobile Communications Center Multiservice - FirelRescue Police Station Rescue & Ambulance Service Rescue & Ambulance Service Equipment Building
Boarding Home for Elderly (Ambulatory Care) Dental Clinic Hospital (General & Surgical) Medical Rehabilitation Center Nursing Home Outpatient Care Physicians Clinics Vocational Rehabilitation Center
Agricultural Fairgrounds Animal Shelter Bridges-Roads Cemetery County Canning Facility Dike Oceanfront Protection Parking Lot Social Services Building Sprinkler System
Adult Day Care Center Child Care Care Center City Hall Community Health Department Office Building Community Center County Courthouse Courthouse Annex Data Processing Center Heating Plant for Public Buildings Home for Delinquents Public Maintenance Building
Airport Hanger Bridge City Airport Municipal & County Garage Off Street Parking School Buses Sidewalks Street Improvement Street Maintenance Equipment
58

Financing for Small Municipal and Rural Wate~ Wastewate~ and Solid Waste Systems

Rural Development (RD) a mission area of the United States Department of Agriculture (USDA) administers loans and grants on behalf of the Rural Utilities Service (RUS). RUS is a new agency created by the reorganization of USDA. Guaranteed Loans, Direct Loans and Grants are available through RUS.
Rural communities and small incorporated towns/cities not larger than 10,000 based on the latest decennial population census of the United States are eligible to apply.
To qualify applicants must be unable to obtain the financing from other sources and/or their own resources at rates and terms they can afford.
Public bodies and nonprofit corporations can be eligible applicants.
Funds can be used for construction, land acquisition, legal fees, engineering fees, capitalized interest, equipment, initial operation and maintenance costs, project contingencies, and any other cost that is determined by the RD to be necessary for the completion of the project. Projects must be primarily for the benefit of rural users.

who do not qualify for the 75 percent category and their MHI is not greater than the non-metropolitan MHI of Georgia ($30,974). Applicants with MHI in excess of the above criteria would qualify for no grant consideration.
The actual amount of grant funds awarded to the applicant will be determined based on the grant dollars required to reduce the user rates for users to a reasonable level up to the maximum amount of 55 or 75 percent.
Grant funds cannot be used to pay project costs related to interest refinancing, purchase of existing systems, and initial operations and maintenance.
Eligibility
Eligibility of an applicant can be determined by filing a pre application package with the appropriate RD Area Office. Eligible applicants will be invited to file application dockets subject to the availability of funds. Personnel will directly assist the applicant in the preparation of the loan/grant application docket. After eligibility is determined but prior to the development of the application docket, we must be able to satisfactorily:

Interest Rates:

1. review and approve the preliminary engineering report

Guaranteed Loans - As negotiated by private lender 2. review and approve the engineering agreement

and applicant and determined by RD to be reasonable. 3 . complete the environmental review and assessment

May be a fixed or floating rate.

of the project impact on the human environment to

Direct Loans - Three categories:

include the applicant' s required advertisements and

Market Rate - Available to applicants whose Median notifications to interested parties.

Household Income (MHI) of service area is greater than 4. any other item that is related to the above three items

the non-metropolitan MHI of Georgia ($30,974).

or is pertinent in being able to determine project

Intermediate Rate - Available to applicants whose MHI feasibility.

is not more than the non-metropolitan MHI ($30,974) Application should be made at the RD Area Office. The

of Georgia and who otherwise do not qualify for the Area Office staff will be glad to discuss services

poverty rate.

available from the RUS and explain how to prepare a

Poverty Rate - Available to applicants whose MHI is written application.

below the latest established nationwide poverty level GeorgiahasArea Offices in:

MHI ($15,600) or below 80 percent of the non- Cartersville

= metropolitan MHI of Georgia (80% of $30,974

Athens Macon

$24,779) and there are existing health/sanitation Waynesboro

770/386-3393 706/546-247 1 912/752-812 1 706/554-700 1

conditions that would be alleviated so as to comply with Tifton

912/382-0273

regulatory agencies established standards.

Baxley

912/367-3603

Up to 55 percent of eligible project costs for applicants GeorgiaStateOffice
Current as of11/96

706/546-2171

59

Emergency Community Water Assistance Grants

Rural Development (RD) is an agency of the United States Department of Agriculture. This is a grant only program of RD designed to assist correcting facilities that have had a significant decline in the quality or quantity of potable water. Grants can be made in rural areas and cities or towns with a population not in excess of 5,000.

Eligible Entities:

Public bodies such as municipalities, counties, special purpose districts; nonprofit corporations and Indian tribes.

Use of Funds:

Construction of new water sources and water lines along with the enlargement, extension, or improvements to existing systems providing water to rural residents. Payment of reasonable fees and expenses for items such as legal, engineering, planning, environmental impact analysis, bond counsel, etc. are permitted.

Application should be made at the RD District Office. The District Office staff will be glad to discuss services available from the RD and explain how to prepare a written application.

Georgia has District Offices in:

Cartersville Athens Macon Waynesboro Tifton Baxley

404-386-3393 706-546-2471 912-752-8121 706-554-7001 912-382-0273 912-367-3603

Current as of: 11/96

Income Requirements:

Median household income of the service area connote exceed the State's non-metropolitan household income of $30,974.

Grant Percentage: 100 percent grants are available up to $500,000 to correct significant declines in the quality or quantity of potable water that occurred within 2 years of filing an application with RD. Grants made for repairs, partial replacement or significant maintenance on an established system to remedy an acute shortage or significant decline in the quality or quantity of potable water cannot exceed $75,000.

Funds Available Nationally:

Funding is available only for emergencies declared by congress and are subject to a Presidential emergency designation.

60

Minority Programs*

* Please also referto these other minority-basedprograms:

GRASP SBA Microloan Program

Pg, 22

Entrepreneurial Development Fund ........... Pg,24

61

Minority Small Business Resource Organizations

These organizations provide a variety of technical counseling and financial assistance to minority small business.

Atlanta Business League 8818 Washington Street, S.W. Atlanta, Georgia 30315 (404) 584-8126

Atlanta Public Schools Contract Compliance Office 1631 LaFrance Street, N.E. Atlanta, Georgia 30307 (404) 371-7129

Business Development Center - NAACP 2034 Stewart Avenue, S.W. Atlanta, Georgia 30315 (404) 768-5755

Department of Commerce Minority Business Development Agency (MBDA) Summit Building, Room 1715 401 West Peachtree Street, N.W. Atlanta, Georgia 30308 (404) 730-3300

Small Business Administration Minority Small Business Division 1720 Peachtree Road, N.W., Suite 636 Atlanta, Georgia 30309 (404) 347-7416

62

Minority Business Development Agencies (MBDA)

The u.s. Department of Commerce's Minority Business
Development Agency funds Business Development Centers nationwide: to assist start-up, expansion and acquisition of competitive minority-owned firms offering quality goods and services. Minority Business Development Centers (MBDCs), Native American Business Development Centers and Minority Enterprise Growth Assistance Centers - known as MBDCs, NABDCs and Regional MEGA Centers - provide business assistance for bonding, bidding, estimating, financing, procurement, international trade, franchising, acquisitions, mergers, and joint ventures to increase opportunities in domestic and international markets for minority entrepreneurs.

Atlanta: Augusta:

The MBDA-funded centers are operated by private firms, non-profit organizations, state and local government agencies, American Indian tribes and educational institutions. The centers provide accounting, administration, business planning, construction and marketing information. They also identify minority-owned firms for contract and subcontract opportunities with federal, state, and local government agencies and the private sector. Operations of the centers are administered by MBDA's Regional and District Offices which oversee the centers' business assistance services to minority entrepreneurs in six multi-state regions.

Columbus:

Atlanta MBDC Harry Zacharias, Director 75 Piedmont Road N.E. Suite 256 Atlanta, Georgia 30303 (404) 586-0973 (404) 586-8131 FAX
Augusta MBDC Kelly McKie, Director 1394 Laney-Walker Boulevard Augusta, Georgia 30901 (706) 722-0994 (706) 722-1730 FAX
Columbus MBDC Post Office Box 1696 Columbus, Georgia 31902 (706) 324-4253 (706) 324-0335 FAX

63

Georgia Minority Subcontractors Tax Credit

In an effort to assist minority-owned businesses, the State of Georgia has a new law which provides for an income tax adjustment, on the State Tax Return, to any company which subcontracts with a minority-owned firm to furnish goods, property or services to the State of Georgia. This includes, but is not restricted to, the construction of any building or structure for the state. The law also defines minority-owned business for the purpose of this program.
A minority-owned business can be one of the following: 1. a business which is owned by a member of a minority
race, or
2. a partnership of which a majority of interest is owned by one or more members of a minority race, or
3. a public corporation of which a majority of the common stock is owned by one or more members of a minority race.
Legislation passed in 1984 (Georgia Code Annotated Title 48, Chapter 7, Article 38) provides for an income tax adjustment, beginning with Tax Year 1985. The law allows a corporation, partnership, or individual, in computing Georgia taxable income, to subtract from federal taxable income or federal adjusted gross income, 10 percent of the amount of qualified payments to minority subcontractors. A payment to a minority subcontractor is a qualified payment if: 1. the payment is for goods, property or services
furnished by the minority subcontractor to the taxpayer and delivered by the taxpayer to the State in furtherance of a State contract to which the taxpayer is a party, and the payment does not exceed the value of the goods, property or services to the taxpayer;
2. the payment is made during the taxable year for which the subtraction from federal taxable income or federal adjusted gross income is claimed;
3. the payment is made to a subcontractor who at the same time of the payment is certified as a minority subcontractor by the Department ofAdministrative Services. The total amount which may be subtracted from federal taxable income or federal adjusted gross income of any taxpayer in computing Georgia taxable income shall be limited to $100,000 per taxable year.

To be a certified minority subcontractor, a company must meet the definition of a minority-owned business and in addition, meet the following criteria: 1. be organized in the State of Georgia; or 2. report income from your business for Georgia
income tax purposes; or 3. if minority stockholders, report earnings for Georgia
income tax purposes. We make an appeal requesting businesses in your community to return the application for certification to the Department of Administrative Services. Should these businesses have questions or need new applications, please contact:
Small and Minority Business Program 200 Piedmont Avenue Suite 1304, West Floyd Building Atlanta, Georgia 30334 (404) 656-6315 (800) 495-0053
Current as of: 11/96

64

City and Community Development
=================================== 65 ===================================

u.s. Department of Housing and Urban Development (HUD)
Community Planning and Development Section 108 Loan Guarantees

Legal Authority Section 108 of the Housing and Community Development Act of 1974, as amended (the Act).
Purpose of the Program Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with an efficient source of financing for housing rehabilitation, economic development and large scale physical development projects.

In addition, guaranteed loan funds may be used to finance construction of housing by nonprofit organizations when undertaken as part of a project that is also financed under the Housing Development Grants (HODAG) or Nehemiah Housing Opportunity Grants programs. For the purposes of determining eligibility, the CDBG rules and requirements apply. As with the CDBG program, all projects and activities must either principally benefit low and moderate income persons, or aid in the elimination or prevention of slums and blight, or meet other community development needs having a particular urgency.

Eligible Applicants Eligible applicants include the following public entities:
A. Metropolitan cities and urban counties (i.e., entitlement recipients under the CDBG program), and
B. Non entitlements communities that are assisted in the submission of applications by State's that administer the CDBG program.
The public entity may be the borrower or it may designate a public agency to receive the loan guarantee.
Eligible Activities Eligible activities include: A. acquisition of real property B. rehabilitation of publicly owned real property C. housing rehabilitation eligible under the CDBG
program D. economic development activities eligible under
CDBG E. related relocation, clearance and site improvements F. payment of interest on the guaranteed loan and
issuance costs of public offerings G. debt service reserves

How the Program Operates

Commitments are listed as follows:

A. Entitlement

No commitment can be made if

public entities: it would cause the total

outstanding guaranteed loans to

exceeds an amount equal to five

times the public entity's latest

(approved) entitlement amount.

B. Non entitlement public entities:

No commitment can be made if it would cause the total outstanding guaranteed loans to the public entities or to other public entities assisted by the State to exceeds an amount equal to five times the latest grant received by the State under the CDBG program.

Security:

The principal security for the loan guarantee is a pledge by the applicant of its current and future CDBG funds. HUD may also require additional security to be furnished if it is deemed necessary. (Additional security will always be required if the repayment period exceeds 10 years; additional security requirements for other loan guarantees will be determined on a case-by-case basis.)

66

Repayment Period: Financing Source:

The maximum repayment period for a loan guarantee under Section 108 is twenty years.
Section 108 obligations are financed through underwritten public offerings. Financing between public offerings is provided through an interim lending facility established by HUD.

For further information contact:
Emma Newsome Department of Housing and Urban Development Richard Russell Building, 75 Spring Street S.W. Atlanta, Georgia 30303 (404) 331-5001, ext. 24
Currentas of: 11/96

Default:

To date, there has been no default under Section 108 resulting in a payment by HUD. In the event of default requiring a payment, HUD would continue to make payments on the loan in accordance with its terms. The source of payments by HUD pursuant to its guarantee would almost always be pledged CDBG funds. However, HUD does have borrowing authority with the Treasury if the pledged funds are insufficient.

67

Atlanta Economic Development Corporation (AEDC)

The Atlanta Economic Development Corporation (AEDC) is a private non-profit corporation founded in 1976 to promote and implement economic development within the city.

encourage the efficient use of energy resources for commercial, industrial, or mixed-use facilities; acquisition of commercial, industrial and mixed-use properties; and inventory and office equipment.

AEDC represents a partnership of the public and private sectors for the purpose of creating and/or retaining jobs, encouraging capital investment, promoting business and neighborhood development and expanding the tax base of the city of Atlanta.
SMALL BUSINESS DEVELOPMENT AEDC provides financial and technical assistance to small minority and female owned businesses to expand and/or relocate in the city.
In cooperation with local financial institutions and government agencies, provides a variety of financial aids for business development projects that have corresponding public benefits.
As a process broker and intermediary, AEDC prepares financial packages designed to bridge the gap between initiation of and financial support from foundations, corporations, banks, government entities and other funding sources to make projects come to fruition.

BUSINESS IMPROVEMENT LOAN FUND (BILF)

Target Areas
Auburn Avenue Bankhead Highway Campbellton Road Cascade Road East Atlanta Georgia Avenue Heart Of Atlanta
(including Underground Atlanta)

Kirkwood Memorial Drive MLK/Ashby Pryor Road StewartlLakewood SylvanlDill West EndlWest View

AEDC manages the City of Atlanta's Business Improvement Loan Fund (BILF) Program, which is designed to encourage the revitalization of targeted business districts in Atlanta, and to support commercial! industrial development in other eligible areas.
Loans can be made for: additions and/or improvements to commercial, industrial and mixed-use property; purchase of equipment and fixtures, which are part of the real estate; emergency conservation designated to

The forms of financial assistance available through the BILF are: DIRECT LOANS up to $50,000 are available to
businesses that are not able to obtain a market rate loan. The interest rate is determined by the project's cash flow, and the loan must be repaid on a monthly basis over a term not to exceed 7 years.
LOAN PARTICIPATION is provided for larger loans (usually $50,000 or more) in the Community Development Impact Areas (CDIA) Loans may be made to small business concerns to assist in meeting local injection requirements for SBA loans with no more than 10% of the total project financial provided from the BILE The interest rate is determined by the project's cash flow, and the repayment term may not exceed that of the longest participating lender (maximum 25 years).
THE PHOENIX FUND Financing/Advantage and Opportunities Include: Below Prime Interest Rate Loan Term Range from
3 to 7 years
Loan Amounts from $10,000-$100,000
Low Equity Injection Fixed Asset and Working Capital A Team of Dedicated Professionals
WHAT IS THE PHOENIX FUND?
The Phoenix Fund is a program created to assist small and medium-sized businesses. The fund provides financial assistance for: construction or renovation of privately-owned
commercial buildings;
equipment purchases needed to operate a business;
and, in some cases, working capital.
The Atlanta Economic Development Corporation through its Phoenix Fund provides loans from $10,000$100,000 at a rate below prime. By assisting small businesses with affordable loans, the Fund works toward its goal of creating and retaining jobs for low! moderate income residents in the City of Atlanta.

68

This program is funded by the Economic Development Administration (EDA) of the U.S. Department of Commerce and the City of Atlanta.

Typical Structure: Source

Amount

Private Financing

67%

Phoenix Fund

33%

Total

100%

May include all or a combination of: capital invested by the borrower or other Financing from private entities SBA affiliated loan programs

For more information on the Phoenix Loan Fund and other financing programs, please contact: Marc Younger AEDC 230 Peachtree Street, Suite 100 Atlanta, Georgia 30303 (404) 658-7734 Fax: (404) 668-7734

Terms of the Phoenix Fund:

Loan Amount:

$10,000-$100,000

Term of Loan:

Maturity dates range from 3 to 7 years

Interest:

The interest rate of the loan is one-half (112) of the current prime interest rate, plus two (2) percent (112 prime +2), with a minimum rate of 4%.

69

City Business Improvement Districts

Georgia law permits the formation of special taxing districts designed to promote the economic development of city commercial areas. These "City Business Improvement Districts" (CBIDs) may be formed by petition of taxpayers in the proposed district to the governing body of the city. Approved districts may provide supplemental services within the district's boundaries in order to improve and promote the district as a whole.

maximum millage to be levied, a budget, design and rehabilitation standards if desired, and a time frame for carrying out the plan, After a public hearing, the governing authority may approve, approve with modifications, or disapprove the plan. Any district plan may be amended or rescinded; or its budget may be changed by ordinance. Districts will cease to exist after five years unless renewed in the same manner as they were created.

Supplemental services include (but are not limited to) the following: advertising, promotion, sanitation, security, and business recruitment and development. For example, a downtown development authority could hire a downtown manager who would coordinate efforts to improve the central business district.
How is a City Business Improvement District Created?
A written petition must be presented to the governing body of the city. The petition must include: 1) signatures of at least 51 percent of the municipal taxpayers of the district proposed for creation (or extension) or signatures of municipal taxpayers owning at least 51 percent of the taxable property subject to ad valorem real and personal property taxation in the district; and 2) a plan that includes a map of the district, a description of its boundaries, a description of the supplemental services to be provided, a proposed

Operation of City Business Improvement Districts
After the adoption of a CBID, the city may levy annually a millage on real and personal property within the district or a surcharge on business and occupational taxes. These taxes will be collected in the same manner as other city taxes. The city may then provide the supplemental services called for in the plan, or it may contract with a nonprofit corporation to provide all or part of these services. The city can, if it chooses, mandate design and rehabilitation standards for buildings located within the district subject to existing historic preservation ordinances.
Legislative Reference Official Code of Geoq~ia Annotated, Title 36, Chapter 43. (Note: This legislation as originally passed applied only to thecity of Atlanta. It was amended by the General Assembly in 1988 to include all cities in the state.)

70

Community Improvement Districts

The Georgia Constitution permits commercial areas to form special tax districts to pay for exceptional infrastructure needs. These "community improvement districts" (CID) do not replace standard city and county infrastructure improvement programs but supplement them by providing a means to pay for facilities which may be specially required in densely developed areas.
The aD may be within a county or a city. Typically it will be a relatively large retail/office/service district at a majorhighway intersectionbut the law will also allow the designation of a downtown area or other commercial district.
Projects which can be funded by a CID include the following: street and road construction and maintenance, sidewalks and streetlights, parking facilities, water systems, sewage systems, terminal and dock facilities, public transportation, and park facilities and recreational areas.
How Does it Work?
A CID is created through local legislation passed by the Georgia General Assembly with the approval by resolution of the city or county government which has jurisdiction over the area in which the CID would be located. In addition, written consent to the creation of the district must be obtained from: a) a majority of the owners of real property within the district which will be subject to the additional taxes or assessments, and b) enough owners of real property within the district to constitute at least 75% by value of all real property in the district which will be subject to the additional tax.
(For example, if there are 50 owners in a proposed cm
and 7 of those owners own 75% by value of the total subject property, then consent must be given by 26 owners including the owners who collectively own at least 75% of the property.)

Property which is not subject to the CID tax or assessment is all property used for residential, agricultural or forestry purposes. Also exempt are tangible personal property and intangible property.
Each CID must have a designated administrative body which may be the appropriate local government itself or a separate organization which includes a representative or representatives from the appropriate local government(s).
The administrative body is authorized to levy taxes,
fees and assessments on all property subject to the tax
up to a level which amounts to 2.5% of the assessed value of the property, i.e., 25 mills. Bonded debt is permitted but such debt may not be considered an obligation of the State or any other unit of government other than the CID.
What Is the Status of eIDs in Georgia? CIDs have been approved in several areas including the Cumberland Mall/Galleria area in Cobb County, Douglas County, Fulton County, Henry County, Sumter County, the City of Atlanta, and the City of Dahlonega.
Legislative Reference Georgia Laws 1984, p. 1703.

71

"Freeport" Tax Exemptions for Georgia Industries

Originally enacted in 1976 and subsequentlyamended several times, Georgia's freeport law offers manufacturers, distributors, wholesalers, and warehouse operations an attractive inventory tax exemption.

of such goods which is reasonably anticipated to be shipped outside this state for retail purposes."
Thus warehoused retail inventory can qualify for freeport tax exemptions.

Three classes of property are eligible:
1.Manufacturer's raw materials and goods-in-process. The freeport law defines these as "goods in the process of manufacture or production which shall include all partly finished goods and raw materials held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business...." The exemption applies "only to tangible personal property which is substantially modified, altered or changed in the ordinary course of the taxpayer's manufacturing, processing or production operations in this state."
2.Finished goods held by the original manufacturer. These are defined in the law as finished goods manufactured or produced within Georgia "in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer.... The exemption...shall be for a period not exceeding 12 months from the date such property is produced or manufactured."
3.Finished goods held by distributors, wholesalers, and manufacturers destined for out-of-state shipment The law states that such goods are those "...which, on January I, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside this state and inventory of finished goods which are shipped into this state...and stored for transshipment to a final destination outside this state."

Raw materials, according to the statute, are "any material whether crude or processed that can be converted by manufacture, processing, or combination thereof into a new and useful product, but shall not include unrecovered, unextracted, or unsevered natural resources."
Flexibility of Administration
Georgia's law gives local governing authorities, whether counties or cities, complete control of implementation, inventory categories, and levels of exemption. A voter referendum is required to implement freeport and to establish the one, two, or three categories to be exempted. Local officials may then set the levels of inventory (from 20% to 100%) to be exempted and, if desired, defer or phase in implementation in 20% increments. (Exemption levels may also be reduced, but only following a 10-year process.)
Simplicity of Filing and Required Record-keeping
A 1992 amendment to the freeport law stipulated that the books and records documenting inventory status shall not be required as part of the application for a freeport tax exemption. The 1992 law also stipulated that historicalsales or shipping records are sufficient documentation for determining inventory status, without a requirement that goods be labeled individually. Further, it is not required that the goods' final destination be known on January I in order to qualify for the exemption.

The law further defines finished goods as "goods, wares, and merchandise of every character and kind, but shall not include unrecovered, unextracted, or unsevered natural resources, or raw materials, or goods in the process of manufacture or production, or the stock-in-trade of a retailer. "
Elsewhere in the law, stock in trade of a retailer is defined as "finished goods held by one in the business of making sales of such goods at retail in this state...when such goods are held or stored at a business location from which such retail sales are regularly made. Goods stored in a warehouse, dock, or wharf, including a warehouse or distribution centerwhichis part ofor adjoins a place of businessfrom which retail sales are regularly made, shallnot be considered stock in tradeofa retailer to the extent that the taxpayer can establish, through a historical sales or shipment analysis, either of which utilizes information from the preceding calendar year, or other reasonable documented method, the portion or percentage

For further information contact: DIT&T Susan Barnett (404) 656-3587
Current as of11196

72

Freeport Counties
March 1996
I I Counties with Freeport
* Foreign merchandise in transit (which has or will be moved by water) is not subject to ad valorem tax at Georgia ports (Bainbridge, Brunswick, Columbus, Savannah). 73

Adult Education and Training
=================================== 74 =====================================

Quick Start

Quick Start is the State of Georgia's internationally known training program for new and expanding business and industries. Administered by the Georgia Department of Technical and Adult Education, it is among the state's primary incentives for the recruitment of new jobs into Georgia. Unlike many states which only provide training grants, Quick Start directly provides a full range of high quality customized training services at no cost to client companies.

For further information contact: Keith Johnson, Marketing Director Georgia Department of Technical and Adult Education 1800 Century Place, Suite 400 Atlanta, Georgia 30345 (404) 679-1700
Currentas of: 11/96

These services cover not only job specific skills but also automation, productivity enhancement, and human resource development training. Examples of these concepts include Statistical Process Control, Programmable Logic Controller, and Team Skills Training.

In addition to manufacturing operations, Quick Start also provides comprehensive training for office operations such as corporate headquarters, billing and remittance centers, and telecommunications operations such as customer service centers.

Since its inception in 1967, Quick Start has trained over 200,000 employes for over 2,500 Georgia companies.

75

Job Training Partnership Act (JTPA)

Training Opportunities
Training resources are available to assist employers in establishing or expanding their workforce. The federally funded Job Training Partnership Act (ITPA) provides training opportunities for economically disadvantaged youths and adults and dislocated workers to prepare them for long-term employment.
Job Placement ITPA offers employers the opportunity to hire people who have been trained in specific occupational areas such as secretarial, health care, welding, construction and other occupations in demand.

For further information contact:
Andrea Harper, Assistant Commissioner Georgia Department of Labor, Job Training Division 148 International Boulevard Suite 650, Sussex Place Atlanta, Georgia 30303 (404) 656-7392 Currentas of: 11/96

On-the -Job Training
The On-the-Job Training program assists employers who hire JTPA participants by reimbursing up to 50% of the employee's wages during the training period.

Customized Training
ITPA offers employers the option to have input into curriculum design and to train participants directly through the customized training program. This program provides occupational skill training in a classroom or on-the-job setting or a combination of both. This program is especially effective for new and expanding industries and can be linked with the Quick Start program at Georgia's Technical Institutes.

76

Georgia Department ofRevenue Georgia Department of Technical and Adult Education
Georgia Tax Credit for Adult Basic Skills Education

The Georgia Tax Credit for Adult Basic Skills Education is designed to encouragebusinesses to provide or sponsor basic skills education programs for their employees. The program provides tax credits under Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, 48-7-41. Business enterprises may benefit by providing or sponsoring for their employees basic education skills that enhance reading, writing, or mathematical skills up to and including the 12th grade level.

Calculating the Credit
The law provides as follows: The amount of tax credit shall be equal to one-third of the costs of education per full-time equivalent student, or $150.00 per full-time equivalent student, whichever is less, for each employee who has successfully completed an approved adult basic skills education program. The tax credit granted to any employer pursuant to the Code shall not exceed the amount of the taxpayer's income liability for the taxable year as computed without regard to this Code section.

Definitions Full-time student
Employee

is defined as an employee who attends class for 4 hours per week for 44 weeks in a year, thus generating at least 176 classroom hours per year. In calculating the tax credit, use 176 hours to calculate "full-time equivalent student" (FIE).
means any worker who resides in this state, is employed at least 24 hours a week, and has been continuously employed by the employer for at least 16 consecutive weeks.

Approved Adult Basic Skills Education
Cost of
Education

means employer-provided or employer-sponsored education which enhance reading, writing, or mathematical skills up to and including the 12th grade level for employees who are otherwise unable to function effectively on the job due to deficiencies in those areas or who might otherwise be displaced because such skill deficiencies would inhibit their training for new technology.
means direct instructional costs, including salaries of instructor's aides, instructional materials, supplies, computers, computer software, and textbooks.

Program Management The Georgia Department of Technical and Adult Education is charged with administration of the Basic Skills Education Program. The Georgia Department of Revenue is charged with administration of the resulting tax credit. Contact persons within each agency are:
Mr. Len Moore, Workplace Coordinator Office of Adult Literacy Programs 1800 Century Place, N.E. Atlanta, Georgia 30345 (404) 679-1628

Mr. Antmony Jackson Georgia Department of Revenue 270 Washington Street, Suite 507 Atlanta, Georgia 30334 (404) 656-4096
(Portions reprintedfrom information provided by Georgia Department ofRevenue and Technical and Adult Education)

The primary local source of information about the program is the Director of Adult Literacy Services at one of the 37 Service Delivery Areas (SDA). The SDA is the basic organizational structure through which adult education programs are provided in the 159 counties in Georgia.

77

Service Delivery Areas and Counties Served
#1 Walker Technical Institute (706) 764-3564 Catoosa, Chattoga, Dade, Walker

#14 Muscogee County Schools (706) 685-7771 Chattahoochee, Marion, Muscogee, Quitman, Stewart

#2 Dalton College Continuing Education (706) 226-3761 Murray, Whitfield

#15 South Georgia Technical Institute (912) 931-2563 Crisp, Macon, Schley, Sumter, Webster

#3 Pickens Technical Institute

#16 Albany Technical Institute

(706) 692-4500

(912) 430-3500

Cherokee, Fannin, Gilmer, Pickens

Doughtery, Early, Lee, Baker, Calhoun, Clay,

Randolph, Terrell

#4 North Georgia Technical Institute

(706) 754-7748

#17 Decatur County SchoolsAdult Education

Habersham, Rabun, Stephens, Towns, Union,

(912) 248-2210

White

Decatur, Miller, Seminole

#5 Lanier Technical Institute (404) 531-6363 Banks, Dawson, Forsyth, Hall

#18 Thomas Technical Institute (912) 225-5010 Grady, Mitchell, Seminole

#6 Gwinett Technical Institute

#19 Athens Area Technical Institute

(404) 962-7580

(706) 355-5026

Barrow, Gwinett

Clarke, Elbert, Franklin, Greene, Hart, Madison,

Morgan, Oconee, Oglethorpe, Taliaferro, Walton,

#7 North Metro Technical Institute

Wilkes

(770) 975-4082

Bartow

#20 Augusta TechAdult Basic Education Center

#8 Cobb CountySchoolsAdult EducationProgram

(706) 355-5026 Burke, Columbia, Lincoln, McDuffie, Richmond

(770) 528-6515

Cobb, Paulding

#21 Swainsboro Technical Institute

#9 Coosa Valley Technical Institute

(912) 237-6465 Candler, Emanuel, Jenkins, Johnson, Treutlen

(706) 295-6963

Floyd, Gordon, Polk

#22 Southeastern Technical Institute

#10 Atlanta City SchoolsAdult Education

(912) 537-6554 Montgomery, Tattnall, Toombs

(404) 752-0831

Fulton

#23 Ogeechee Technical Institute

#11 Carroll Technical Institute

(912) 681-5500 Bulloch, Evans, Screven

(706) 295-6963

Carroll, Coweta, Douglas, Haralson

#24 Richard Arnold Adult Education Center

(912) 651-7320

#12 West Georgia Technical Institute

Bryan, Chatham, Effingham, Liberty

(706) 291-9668

Harris, Heard, Meriwether, Troup

#25 Altamaha Technical Institute

#13 Flint River Technical Institute

(912) 427-5800 Appling, Jeff Davis, Long, Wayne

(706) 291-9668

Crawford, Talbot, Taylor, Upson

#26 Glynn County Schools

Adult Education Center

(912) 267-4115

Camden, Glynn, McIntosh continues on nextpage IIF

78

#27 DeKalb Technical Institute
(404) 297-9522 DeKalb, Newton, Rockdale
#28 Clayton County Schools Adult Education
(404) 362-3810 Clayton, Henry
#29 Griffin Technical Institute
(770) 412-4000 Butts, Fayette, Jasper, Lamar, Pike, Spalding
#30 Bibb County Schools,
Baldwin, Vo-Tech Center (912) 751-3221 Bibb, Jones, Monroe, Putnam, Twiggs
#31 Heart of Georgia Technical Institute
(912) 275-6589 Bleckley, Dodge, Laurens, Wheeler, Wilkinson
#32 Middle Georgia Technical Institute
(912) 929-6851 Dooly, Houston, Peach, Pulaski

#33 Ben Hill-Irwin Technical Institute
(912) 468-7487 Ben Hill, Coffee, Irwin, Telfair, Turner, Wilcox
#34 Moultrie Technical Institute
(912) 891-7000 Colquitt, Tift, Worth
#35 Valdosta Technical Institute
(912) 333-2125 Berrien, Brooks, Cook, Echols, Lanier, Lowndes
#36 Okefenokee Technical Institute
(912) 287-6580 Atkinson, Bacon, Brantley, Charlton, Clinch, Pierce, Ware
#37 Sandersville Technical Institute
(912) 553-0443 Glascock, Hancock, Jefferson, Warren, Washington

79

o
Other Federal and State Programs Offering Financial and
Technical Assistance
:===:===:===:===:===:===:===:===:===:===:===== 80 : = = = : = = = = = = = = = = = = = =

u.s. Department ofCommerce
Economic Development Administration (EDA)

The Economic Development Administration (EDA) was established under the Public Works and Economic Development Act of 1965, to generate newjobs, to help protect existing jobs and to stimulate commercial and industrial growth in economically distressed areas of the United States.

Summary of Programs

Public Works grants

to public and private nonprofit organizations and Indian Tribes to help build or expand public facilities essential to industrial and commercial growth. Typical projects include industrial parks, access roads, water and sewer lines, port and airport terminal developments.

Technical Assistance grants
Planning grants

to communities and firms to find solutions to problems that stifle economic growth. Under the technical assistance program, funds are used for studies to determine economic feasibility of resource development to establish jobs and provide on-the-scene assistance for innovative economic development techniques.
to states, cities, regional planning councils and Indian Tribes to help pay for the expertise needed to plan, coordinate and implement comprehensive economic development programs.

Revolving Loan Fund grants
Economic Adjustment program grants

are awarded to help depressed areas overcome specific capital market gaps and to encourage greater private sector participation in economic development activities. In concert with private lenders, RLF grantees make fixed asset and/or working capital loans to area businesses.
are to assist state and local governments in solving recent and anticipated severe adjustment problems resulting in abrupt and serious job losses and to help areas implement strategies to reverse and halt long-term economic deterioration, i.e., natural disasters and military base closures.

For more information contact:
Lee Brannon Economic Development Administration (EDA) 401 West Peachtree Street, N.W., Suite 1820 Atlanta, Georgia 30308-3510 (404) 730-3Q()()
Current as of: 11/96

University Center program grants

are awarded to colleges and universities to utilize available resources to provide technical assistanceto clientsand address economic development programs and opportunities of their service area.

81

United States Export Assistance Center (USEAC)

u.s. Export Assistance Centers (USEAC) serve as one-
stop-shops for export assistance, combining all federal export resources under one roof. In September, 1995 the Export Assistance Center in Atlanta opened its doors to provide customer focused services to exporters. The Atlanta EAC is unique in that it integrates an extensive state export assistance network with federal resources.
The mission of the Export Assistance Center is to:

For more information contact:
Susanne Keough 285 Peachtree Center Avenue Suite 200 Atlanta, Georgia 30303 (404) 657-1964 (404) 6571970 Fax
Currentas of: 11196

increase the number of successful U.S. exporters and their expansion into existing and new markets
create jobs through exports
increase the international competitiveness of U.S. industry by providing a single point of contact for export marketing and trade finance assistance
The Atlanta EAC provides marketing assistance, a resource center and financial assistance. The professional counseling services provided by EAC counselors is free of charge. Most market research and trade information is furnished at no cost to the client. Formal applications for trade finance programs involve fees.

The Atlanta EAC combines the export promotion and finance resources of the following agencies:

U.S. Department of Commerce U.S. Small Business Administration The Georgia Department of Agriculture The Georgia Department of Industry, Trade and Tourism Georgia Tech Center for International Standards
and Quality Department of Community Affairs Service Corps of Retired Executives Small Business Development Center

82

Tennessee Valley Authority (TVA)

The Tennessee Valley Authority (TVA) originated in 1933 as a federal agency with a mission of regional development throughout the Valley region. The mission today is not much different in that the goal ofTVA is to create and support economic development opportunities that result in high-value jobs in the Tennessee Valley region, which includes parts of North Georgia.
TVA's primary focus is helping communities:

For further information, please contact: TVA Economic Development Group E. Sue Ridley/Dr. Larry A. Johnson 1101 Market Street, WR4P Chattanooga, Tennessee 37402 (423) 751-6278/(423) 751-6739 (423) 751-8404 FAX
Currentas oj:11/96

gain access to capital developing and sustaining local industry assist local communities with economic
development efforts

83

EDA Local Revolving Loan Fund (RLF) Programs

Summary
The United States Department of Commerce, through the Economic Development Administration (EDA), has established revolving loan funds in a number of Georgia's Regional Development Centers (RDC's) throughout the State. Within those regions funded and for those counties eligible for EDA assistance, the revolving loan funds are used to help businesses expand and create jobs. Each revolving loan fund is operated by a local board of directors and has slightly different operating procedures and requirements. Currently in Georgia, there are seven revolving loan funds operating under the auspices of five ROC's. These seven include North Georgia ROC, Georgia Mountains ROC, Central Savannah River ROC, Coastal ROC, South Georgia ROC, Southwest Georgia ROC and Southeast Georgia ROC. (Some of the revolving loan funds are operated by a sister agency with different board composition than that of the ROC.)
Deadlines Each RLF has its own deadlines, but funds, if available, usually can be applied for throughout the year.
Eligibility For-profit businesses may use loan proceeds to acquire land or fixed assets, or for construction, renovation or working capital. Projects must usually have private sector participationand cannot include developerllandlord deals.
Maximum Loan Amount
Maximum loan amounts will vary from one RLF to another. Amounts financed generally range from $25,000 to $500,000. Loan to value ratios accepted by each RLF vary depending upon local policy.

Terms Terms vary depending upon local policy. Usually terms are favorable in comparison to private lending institutions. Interest rates are at or below the current market rate. Rates may be fixed or floating. RLF's do not normally require concessions on rate and term from participating lenders.
Program Requirements cash flow must exceed debt service adequate collateral is required personal guarantees are often required. particular kinds of industries may be ineligible due
to local or EDA policy
RLF's capitalized with CDBG funds must follow all applicable CDBG regulations
other requirements may be in place depending on local policies
In addition to the regional RLF's, there are over 50 similar programs in Georgia cities and counties that have been capitalized by Community Development Block Grant (CDBG)/Employment Incentive Program (EIP) "recapture" funds or similar sources. The following page lists all the regional ROC's in Georgia as well as addresses and contact persons.
For further information contact Ross Avina Georgia Department of Community Affairs 60 Executive Park South, N.E. Atlanta, Georgia 30329 (404) 679-1593 Current as of: 11/96

84

Regional Development Centers

ATLANTA REGIONAL COMMISSION
Mr. Harry West, Director 3715 Northside Parkway 200 Northcreek, Suite 300 Atlanta, Georgia 30327 (404) 364-2500
*CENTRAL SAVANNAH RIVER AREA RDC
Mr. Tim F. Maund, Director Post Office Box 2800 Augusta, Georgia 30914-2800 (706) 737-1823
CHATTAHOOCHEE FLINTRDC
Robert Buchanan, Interim Director Post Office Box 1600 Franklin, Georgia 30217 (706) 675-6721
* Denotes RDC with
Regional Revolving Loan Fund

*COASTAL GEORGIA RDC Mr. Vernon D. Martin, Director Post Office Box 1917 Brunswick, Georgia 31521 (912) 264-7363
COOSA VALLEY RDC Mr. James H. Layton, Director Post Office Box 1793 Rome, Georgia 30163-1001 (706) 295-6485
*GEORGIA MOUNTAINS RDC Mr. Larry Glasco, Director Post Office Box 1720 Gainesville, Georgia 30503 (770) 536-3431
HEART OF GEORGIA ALTAMAHA RDC
Mr. Alan Mazza, Interim Director 501 Oak Street Eastman, Georgia 31023 (912) 374-4771
LOWER CHATTAHOOCHEE RDC
Mr. Ron Starnes, Director Post Office Box 1908 Columbus, Georgia 31902-1908 (706) 649-7468

*NORTH GEORGIA RDC Mr. Barry L. Tarter, Director 503 West Waugh Street Dalton, Georgia 30720 (706) 272-2300
NORTHEAST GEORGIA RDC Mr. James R. Dove, Director 305 Research Drive Athens, Georgia 30605-2795 (706) 369-5650
*SOUTH GEORGIA RDC Mr. Hal A. Davis, Director Post Office Box 1223 Valdosta, Georgia 31603 (912) 333-5277
*SOUTHEAST GEORGIA RDC Mr. Lace Futch, Director 3395 Hams Road Waycross, Georgia 31503 (912) 285-6097
*SOUTHWEST GEORGIA RDC Mr. Dan Bollinger, Sr. Post Office Box 346 Camilla, Georgia 31730 (912) 336-5616

McINTOSH TRAIL RDC Mr. Lanier Boatwright, Director Post Office Drawer A Barnesville, Georgia 30204 (770) 358-3647

MIDDLE FLINT RDC Mr. Bobby L. Lowe, Director 228 West Lamar Street Americus, Georgia 31709 (912) 931-2909

MIDDLE GEORGIA RDC Mr. James C. Tonn, Director 175-C Emery Highway Macon, Georgia 31201 (912) 751-6160

85

86

Export-Import Bank

The Export-Import Bank of the United States (Eximbank) is an independent U.S. Government agency that helps finance the sale of U.S. goods and services to foreign buyers. Eximbank supports export sales by making it easier for overseas buyers to purchase U.S. goods and services on credit. It does this in two ways: 1. Eximbank provides loans directly to foreign buyers;
and
2. It encourages U.S. suppliers or their banks to extends credit terms to foreign buyers by providing credit risk protection, and in some cases, fixed-rate funding support.
Eximbank also helps U.S. exporters obtain pre-export financing through its Working Capital Guarantee Program.

For further information contact: Joyce Papes The Export-Import Bank of the U.S. 811 Vermont Avenue, N.W. Washington, D.C. 20571-0999 (202) 565-3900
Currentas of: 11/96

Eximbank will support the sale of U.S. goods or services to a creditworthy foreign buyer when private financing cannot be arranged. To qualify for Eximbank support, the product or service must have at least 50% U.S. content, and cannot be military related. All transactions also must be economically viable and must not affect the U.S. economy adversely. There must be a reasonable assurance of repayment

Eximbank can assist in three ways: 1. By guaranteeing 100% of the principal and interest
on commercial loans to small and medium-sized companies that need funds to produce or market U.S. goods and services for export.
2. By providing competitive, fixed-interest rate loans to foreign buyers of U.S. capital equipment and services, or through an intermediary lender.
3. By providing credit insurance policies for single or repetitive export sales or leases to foreign buyers.
To encourage small businesses to sell overseas, Eximbank offers a special toll free number (800) 5653946 to provide information on these services.

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Federal Home Loan Bank Community Investment Program (CIP)

The Federal Home Loan Bank of Atlanta provides a number of services to its member institutions (banks and savings and loans). One is the Community Investment Program (CIP), which may help make projects feasible for small business development.
The fund provides short, intermediate and long-term funds to its member institutions for lending in their communities. Funds may be used to: Assist first-time home-buyers Loans to small businesses, The rehabilitation of historic districts Community redevelopment programs For home mortgages for low and moderate income
families The maturities offered are up to 20 years at fixed rates.

For further information contact:
Lynn Brazen The Community Investment Program Federal Home Loan Bank of Atlanta 1475 Peachtree Street, N.E. Atlanta, Georgia 30309-3037 (404) 888-8177
Current as of: 11/96

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Rural Business and Cooperative Development Service Program

The program provides grants and zero-interest loans to Rural Utilities Service (RUS) borrowers (electric and telephone companies) for public-private projects for economic development and job creation.
Eligible Applicants Eligible applicants include any RUS borrower.
Deadlines RUS borrowers may apply for funds during the first 14 days of any month.

For further information contact:
Mark Wyatt, Rural Development Coordinator U.S. Department of Agriculture Rural Development Assistance 14th and Independence Avenue S.W. Room 2245, South Building Washington, D.C. 20250 (202) 720-0410 Information can also be obtained from the local Electric Membership Corporation (EMC)
Current as of: 11/96

Funds Available
$12.3 million is to be available in fiscal year 1995 in the loan program and over $20 million in the grant program.

Special Conditions and Terms
Access to funds is only possible through RUS borrowers.
Loans and grants may not be used for any project costs incurred prior to RUS approval; payments to owners, partners or beneficiaries of any property, building or equipment acquired for the project are not allowed when such person has an interest in the project or projects involving a conflict of interest.
No profit may accrue to the RUS borrower..
Other restrictions may apply.

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Georgia Procurement Assistance Center (GPAC)

In an effort to broaden the base offirms supplying goods and services to the federal government, the Defense Logistics Agency contracts with procurement assistance centers around the country to assist firms in their efforts to do business with the federal government. The Georgia Procurement Assistance Center (GPAC) is one such center. GPAC since its inception in September, 1985, has been providing assistance to Georgia firms interested in finding opportunities within the federal market.

For further information contact:
Charles Catlett Georgia Tech Economic Development Institute 208 O'Keefe Building Atlanta, Georgia 30332 (404) 894-6121
Currentas of11/96

The major purpose of GPAC is to promote economic and business development in Georgia and provide assistance and direction to firms in the procurement market. The Center helps firms solicit bids and locate procurement opportunities with the Department of Defense and area military facilities seeking certain goods and services. Although assistance is given upon request to any finn, the majority of clients are small and disadvantaged businesses. The Center will offer assistance as long as the finn shows interest and effort.

A free overview of government procurement is provided to interested companies and assistance is given for placement on the mailing lists of government buying centers. The Center staff evaluates the finn's ability to supply items.They use this information to match firms and government procurement opportunities. In addition, contractors are interested in areas such as packaging, quality control, and cost accounting. If necessary, the Center will assist the contractor through the entire bidding process. Government buyers are beginning to rely on the Center to locate new qualified sources as well as assisting current prime contractors with problem areas. The Center also offers a computer matching service that matches opportunities listed in the Commerce Business Daily (CBD) with client capabilities. Although all other services are free of charge, a yearly fee of $150 is charged to companies who want to participate in the computer matching service.

The Georgia Tech Research Institute (GTRI) has 12 regional offices around the state. GPAC has a counselor in each of these offices. These counselors also help to ensure that GPAC's services are available statewide.

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GEORGIA DEPARTMENT OF
COMMUNITY AFFAIRS
60 Executive Park South, N.E. Atlanta, Georgia 30329-2231
(404) 679-4940 Publication Number: 0095
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