Compilation of Rules and Regulations of the State of Georgia
Department 413 - GRANTS OF THE ONEGEORGIA AUTHORITY
Chapter 413-6
Subject 413-6-1 - ENTREPRENEUR AND SMALL BUSINESS DEVELOPMENT
Rule 413-6-1-.08 - Ineligible Activities and Businesses

Refinancing of existing debt is not an eligible activity of the ESBD Loan Guarantee Program. Unless waived by the OneGeorgia Authority for good cause, the following types of sub-recipient businesses are ineligible for ESBD loan guarantees: Non-profit businesses (for-profit subsidiaries are eligible); Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (e.g., pawn shops); Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds; Life insurance companies; Businesses whose financed activity will be located outside the State of Georgia; Pyramid sale distribution plans; Businesses deriving revenue from legal gambling activities or games of chance (excluding the Georgia Lottery); Businesses engaged in any illegal activity; Private clubs and businesses which limit the number of memberships for reasons other than capacity; Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting; Consumer and marketing cooperatives (producer cooperatives are eligible); Loan packagers; Businesses with a Principal who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude; Businesses in which the Lender, or any of Lender's Associates owns an equity interest; Businesses which: Present live performances of a prurient sexual nature; or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature; businesses that have previously defaulted on a State or Federal loan or State or Federally assisted financing, resulting in the State or Federal government or any of its agencies or Departments sustaining a loss in any of its programs, and businesses owned or controlled by an applicant or any of its Associates which previously owned, operated, or controlled a business which defaulted on a State or Federal loan (or guaranteed a loan which was defaulted) and caused the State or Federal government or any of its agencies or Departments to sustain a loss in any of its programs; Businesses primarily engaged in political or lobbying activities; and businesses that receive more than 25% of their gross revenue from the sale of alcoholic beverages.

O.C.G.A. Sec. 50-34-1et seq.