Current through Rules and Regulations filed through September 23, 2024
(1) All applications received from applicants will be reviewed to determine the merit of the applications and the proposed use of funds. One Georgia Authority's agent will rate and review all applications that meet the Threshold Requirements outlined in Section 413-5-1-.08. Applications will be rated according to a point system with the maximum number of points available to an application being set at 500. In order to be fundable, an application must receive a minimum score of 300 points. For all applications, the rating criteria may award up to 100 bonus points for projects that meet the bonus criteria outlined in Section 413-5-1-.09(7). The rating criteria are outlined below.
(2)
Proprietary information:
Georgia Law requires that "All public records of an agency as defined in subsection (a) of this Code section, except those which by order of a court of this state or by law are prohibited or specifically exempted from being open to inspection by the general public, shall be open for a personal inspection by any citizen of this state at a reasonable time and place; and those in charge of such records shall not refuse this privilege to any citizen" (O.C.G.A. §
50-18-70(b)). This means that past and current records on Loan Fund projects and applications are required to be open for public inspection.
However, certain proprietary information which is required to be included in an application and must be supplied by a business or developer in order to receive funds and which by law are prohibited or specifically exempted from being open to inspection by the general public (for example, information that constitutes a "trade secret" (O.C.G.A. §
10-1-740et seq.; 16-8-13(a)(4)) is exempt from disclosure under O.C.G.A. Section 50-18-70. Any information an applicant or sub-recipient business believes is exempt from disclosure must be clearly identified as such.
(3) Applications will be reviewed based upon enhancement of economic development opportunities and the project's contribution to the development of the State's strategic industries. Applicable criteria include, but are not limited to:
The soundness of the company's scientific and technical base
The development and commercialization strategy of the company
Market opportunities and commercial potential
The sustainability of the company as evidenced by access to capital, cash position, burn rate, etc.
Demonstration of need for the funds and lack of available funding in the marketplace
Contribution to the State's strategic industry clusters and innovation economy
Experience and expertise of key management and scientific personnel
Numbers and types of jobs created or retained
Total private capital investment
Impact on the state, regional and community economy and tax base
Degree of local financial commitment
Consistency with local and regional development goals and objectives
Project readiness, including, if applicable, the company's timeline for producing a marketable product
Project feasibility
Wage levels compared with average wages of industry in the impacted area
Reasonableness of cost estimates
(4)
Project Feasibility (160 Points Maximum).
Applications will be awarded "feasibility" points according to the following scale: poor: 0.0 points; below average: 30.0 points; average: 60.0 points; good: 90.0 points; excellent: 120 points. The criteria outline detailed below will determine where on the "Feasibility" Scale an application ranks:
A) The description of the proposed project and activities are clearly described and documented, and the responsibilities for carrying out each activity are clearly ascribed to a participating entity and each entity has firmly committed in writing to carry out its part. Project narrative should describe:
i) the company's background, history and mission, including how long the principals have been involved, how the work has been funded thus far, and what has been accomplished in the last twelve months;
ii) the need or problem that the company's product addresses and the current state of available options to meet that need or problem (i.e., the market for the company's product);
iii) the company's proposed technology or product and the specific aims;
iv) the competitive advantage of the company's technology or product;
v) the technical, scientific and commercial milestones for the company, at least through commercialization of a product;
vi) the status of the company's intellectual property and whether the company has an established intellectual-property policy;
vii) any regulatory approvals that the company must obtain;
viii) qualifications of key management and scientific personnel;
ix) the proposed costs for the project and the status of all funding sources;
B) Underwriting analysis has determined that:
i) the company's capitalization plan is sound and sufficient to sustain the company at least through commercialization of its product;
ii) the near-term commercialization potential is good and reasonably estimated;
iii) the company's performance and standing is secure in the following areas: capital management, debt capacity, management character/experience, collateral value, economic and market conditions;
iv) the company's development team (principals, officers, production and scientific leaders, developers, contractors, etc.) is committed and has a successful record in the proposed or a similar industry;
v) the proposed business plan, marketing strategy and proforma are realistic; and
vi) the company will be able to repay the Loan Fund loan.
C) Scientific vetting has determined that:
i) the company has a sound scientific and technical base;
ii) the company has a competitive edge in the marketplace;
iii) the company's regulatory strategy is sound;
iv) the intellectual property of the company is strong;
v) the company has a reasonable timeline for research and development, raising capital, applicable regulatory approvals, commercialization of products, etc.;
vi) the company has plans for manufacturing and marketing its product, whether in-house or with a partner; and
vii) the company has a reasonable likelihood of obtaining regulatory approval (e.g., FDA, USDA) of its products (as applicable);
D) Project costs are verified through original source documents, architectural and engineering reports, or certified appraisals; and
E) Project readiness concerns are addressed (as applicable):
i) engineering/architectural/environmental reports are complete;
ii) infrastructure/utility access issues;
iii) specific job and investment commitments have been made;
iv) commitments to fund operations/maintenance, etc.;
v) other public and private sector investors are committed and ready to invest;
vi) all needed real property is acquired or under option;
vii) environmental, regulatory and liability concerns addressed (phase 1, government permits, etc.);
viii) administrative capacity is adequate;
F) Applicant certifies that project complies (or will comply) with all applicable federal, state, and local law and regulations.
G) For regional projects, provisions are in place for joint ownership and revenue- or cost-sharing.
H) The project will generate positive net public benefits as quantified by an acceptable public cost-benefit analysis, model or methodology.
(5)
Program Strategy (120 Points Maximum).
Applications will be awarded "Strategy" points according to the following scale: poor: 0.0 points; below average: 30 points; average: 60 points; good: 90 points; excellent: 120 points. In order to determine where on the "strategy" scale a project ranks the following criteria will be analyzed:
A) The proposed project will result in the enhancement of Georgia's strategic industries and the State's innovation economy;
B) The proposed project will benefit from and enhance the state's research institutions;
C) The proposed project is likely to lead to indirect local, regional or statewide impact by:
i) attracting related development/investment;
ii) supporting/enhancing local or regional development strategies and priorities; and
iii) fostering partnerships between the private sub-recipient and Georgia's research universities and state colleges;
D) Financial and programmatic alternatives have been considered for the proposed project and eliminated;
E) The proposed project supports the overall objectives of the OneGeorgia Authority and supports the state's development strategy for:
i) targeted industries and sectors;
ii) rural development; or
iii) regional impact;
F) The project represents an innovative approach to the development and retention of employment opportunities in Georgia's strategic-industry sectors.
(6)
Project Impact (120 Points Maximum).
Applications will be awarded "Impact" points according to the following scale: poor: 0.0 points; below average: 30.0 points; average: 60.0 points; good: 90 points; excellent: 120 points. In order to determine where on the impact scale a project ranks the following criteria will be analyzed:
A) The number and quality of jobs to be created or retained including workforce enhancement through higher-than-average wages, job training, skill upgrades, education, etc.;
B) The amount of OneGeorgia and total state assistance per job created or retained;
C) Amount of private leverage represents at least a 3-to-1 match of the Strategic Industries Loan Fund amount (any investments made in the company more than three months prior to the Loan Fund application may not be counted toward the 3-to-1 match requirement);
D) The amount of public leverage;
E) New/retained taxes;
F) Improved regional or state competitiveness;
G) Impact on regional poverty and unemployment rates;
H) Potential secondary benefits;
I) The diversification of local, regional or state economies through support of targeted industries.
(7)
Bonus Points (100 Points Maximum). Applications will be awarded bonus points based upon a project's demonstration of exceptional benefits or partnerships such as:
a) significant new job creation for an eligible rural county;
b) exceptional public benefits and economic development potential for an eligible rural county;
c) significant and quantifiable regional cooperation or impact as evidenced by multi-jurisdictional cooperation through project ownership or a revenue- and cost-sharing agreement or other intergovernmental agreement that evidences significant cooperation between two or more counties.
(8) The criteria in this rule (413-5-1) are designed to assist the OneGeorgia Authority and its agent in making a decision and only constitute minimum standards. Additional factors may be considered depending on the nature of particular projects and their relative merit compared to competing proposals and depending on the availability of funding at the time of application. The decisions made by the OneGeorgia Authority shall be final and conclusive.
O.C.G.A. Sec. 50-34-1et seq.
