UNIFIED GOVERNMENT OF ATHENS-CLARKE COUNTY, GEORGIA
Department of Human & Economic Development
Athens-Clarke County Growth Fund
The Athens-Clarke County Growth Fund's (ACGF) primary purpose is to encourage the employment of low and moderate- income individuals who reside within the County. In order to achieve this goal, the ACGF offers low-interest gap financing to start-up and expanding businesses that commit to creating jobs and hiring low and moderate-income individuals for 60% of these jobs.
AVAILABILITY:
The ACRLF is available to businesses when they are starting up or expanding and new jobs are being created. Funds are loaned at slightly below market rates, in conjunction with traditional (usually bank) financing, to make a complete loan package affordable to the local business.
ELIGIBLE USES:
The eligible uses of the ACGF include financing for long-term fixed assets, such as land, buildings, machinery and equipment, as well as rehabilitation, acquisition and leasehold improvements.
The ACGF cannot be used for working capital, inventory or refinancing of existing debt.
PROGRAM REQUIREMENTS:
The ACGF is focused towards small business development in areas targeted for community revitalization. Loan applications are accepted and considered by the Department of Human and Economic Development (HED) on a funds-available basis. An appointed Loan Committee reviews the applications taking into consideration program guidelines and typical underwriting criteria. Decisions on loans under $50,000 are made by the Loan Committee. Loans over $50,000 must receive final approval from the Athens-Clarke County Commission.
There are two job creation components that must be fulfilled by borrowers in order to qualify for ACRLF funds:
· One full-time job must be created for every $10,000 of ACRLF funds in the loan package and may include the business owner.
· At least fifty-one percent (51%) of those hired for these new positions must be low to moderate-income individuals prior to hire. A required self-certification form can be easily completed as part of the pre-hire process.
Additionally, borrowers must demonstrate through appropriate documentation that ACGF funds are necessary gap financing for the success of the project; e.g., borrowers must document that without ACRLF funds the project would not be possible.
TYPICAL LOAN STRUCTURE:
The structure of a loan package may vary depending upon the needs of the borrower. Generally, the borrower contributes at least ten percent (10%) of the equity, a financial institution provides around fifty percent (50%) and the ACGF provides the gap of forty percent (40%).
APPLICATION PROCESS:
Applying to the ACGF is just like applying to any financial institution for a business loan. HED works with the applicant throughout the process. The ACGF uses a standard commercial loan application, which is supported by the following documents:
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SMALL BUSINESSES ASSISTANCE:
The Small Business Development Center at the University of Georgia offers a wide variety of business services including continuing education, business consulting, and business research. The Center can also assist in locating sources of capital, creating a business plan, and expanding to foreign markets. Contact:
UGA - Small Business Development Center
UGA Business Outreach Services
1180 East Broad Street - Chicopee Complex
Athens, GA 30602
Call: (706) 542-7436
Fax: (706) 542-6803
http://www.sbdc.uga.edu
ACGF ASSISTANCE:
Unified Government of Athens-Clarke County
Human & Economic Development
375 Satula Avenue
Athens, GA 30601
Call: (706) 613-3155
Fax: (706) 613-3158
