Current through Rules and Regulations filed through September 23, 2024
(1) All applications received from lenders will be reviewed in accordance with applicable requirements of this regulation, OneGeorgia guidelines and applicable law.
(2) Threshold Requirements (Application must generally meet all requirements in order to be rated.):
A) The application is from an eligible lender who has certified to its good standing and the fact that lender is in compliance with all applicable state, federal and local laws, regulations and its corporate charter;
B) The application supports an eligible sub-recipient. The owner or majority principal of the sub-recipient business must reside in a rural county as defined in section 413-6-1-.03.
C) The project takes place in a "rural" county or a "conditionally eligible" county with a population of less than 150,000.
D) The proposed terms of assistance meet applicable requirements as described in 413-6-1-.06 and 413-6-1-.10;
E) The proposed use of funds are for eligible activities and will be carried out in a manner consistent with the state constitution, state law and in accordance with the applicants' (or sub-recipients') policies and procedures;
F) The application contains a letter of certification from the Lender stating that but for the ESBD Loan Guarantee Program, the proposed loan would not otherwise be considered for funding;
G) (Reserved.)
(3) The OneGeorgia Authority relies on the Lender's credit analysis of the sub-recipient business and project; however, the Lender must certify that proper due diligence has been met and upon request, provide appropriate documentation to the OneGeorgia Authority demonstrating that the ESBD guaranteed loan meets the following minimum financial viability thresholds:
A) A minimum cash equity injection of 10% is required for the ESBD project.
B) Guaranteed loans must be secured under the Lender's existing collateral policy.
C) Working capital loans guaranteed by the ESBD Program must be adequately secured. Collateral can include business assets or personal assets outside of the business.
D) Cash flow projections must indicate the company's ability to service the ESBD guaranteed loan and other company debts.
E) Owners of the company with a greater than 20% ownership must provide personal guarantees on the ESBD guaranteed loan.
F) The company must be solvent as indicated on its most recent balance sheet.
G) Entrepreneurs starting new businesses must provide an adequate business plan (such assistance is provided by Small Business Development Centers) documenting the strengths of the management team and a sound marketing plan. The business plan must support the financial projections presented that indicate loans can be repaid.
(4) The criteria in this rule (413-6-1-.09) are designed to assist the OneGeorgia Authority or its Agent in making a decision and only constitute minimum standards. Additional factors may be considered depending on the nature of a particular project and its relative merit compared to competing proposals and the availability of funding at the time of application. The decision made by the OneGeorgia Authority shall be final and conclusive.
O.C.G.A. Sec. 50-34-1et seq.
