Overview

The Georgia Funding for CDFIs program is designed to provide access to capital to small businesses in order to create job opportunities in low-to-moderate income, minority, and other underserved communities, including women and minority-owned small businesses. The CDFIs currently operating in Georgia are positioned in the metro and rural underserved communities around the State and have established relationships with local banks, local chambers of commerce, economic development authorities and small business owners that are recognizing the need for job creation on a local or personal level. By partnering with banks, the CDFIs plan to leverage the SSBCI funds 10:1 over the life of the program. 

Source of Funding

The Georgia Funding for CDFIs program is funded through the federal Small Business Jobs Act of 2010 (the “Act”), which became law in 2010. The Act created the State Small Business Credit Initiative (SSBCI), funded with $1.5 billion to strengthen state lending programs that support small businesses and manufacturers. Of that total amount allocated, the State of Georgia was allocated $47,808,507, of which $20 million is being made available to the State’s participating non-depository Community Development Financial Institutions (CDFIs), including the Georgia Cities Foundation, through the Georgia Funding for CDFIs program.

Eligible Uses of Funds

Acquisition, rehabilitation and/or infill construction of downtown buildings.

Loan Amounts

Targeted loan amounts range from $100,000-$250,000; other amounts may be available.

Loan Term

10-year term, with 15 year amortization; other terms may be available.

Interest Rate

Below market fixed rates.

Fees

Application fees and origination fees may apply.

Bank Participation Required

Yes.

Special Requirements Regarding Passive Real Estate Ownership 

Projects seeking funding through SSBCI that include passive real estate ownership must meet the floor area threshold requirements listed below. Passive real estate ownership is defined as ownership of real estate for purpose of deriving income from speculation, trade, or rental, except for: a) the ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate; and b) ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase. 

Eligibility requirements for projects which include passive real estate:

• 51% of floor area for renovated properties must be owner-occupied.
• 60% of floor area for new construction must be owner-occupied.