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-.10 - Awarding of Guarantees and Subsequent Funds

Universal Citation: GA Rules and Regs r 413-6-1-.10

Current through Rules and Regulations filed through September 23, 2024

ESBD loan guarantees to the Lender will be made in the form of an agreement and shall generally carry the following terms:

(1) ESBD limits loan guarantees from $15,750 to $112,500 based on a total project cost of $35,000 to $250,000. These limits can be waived upon recommendation of the Executive Director of the OneGeorgia Authority.

(2) The exact terms of the loan will be negotiated between the Lender and the sub-recipient business; however, the interest rate shall not exceed prime +2%.

(3) Once approved, the guarantee agreement made available by the OneGeorgia Authority or its Agent constitutes a legal agreement incorporating by reference the approved final application and adding any conditions that may be necessary or appropriate.

(4) As part of the guarantee conditions, lenders must file a final report on the impact and performance of the project, in a format prescribed by the OneGeorgia Authority or its Agent.

(5) The OneGeorgia Authority or its Agent may approve a guarantee subject to certain conditions that will be incorporated into the guarantee agreement. Because of the limited amount of funds available, the One Georgia Authority or its Agent may also guarantee an amount less than the amount requested in the application. Lenders will have thirty (30) days from the date of the guarantee agreement to accept any conditions and/or the reduced guarantee amount. If the applicant fails to accept the conditions or lower guarantee amount within the required period, the OneGeorgia Authority and/or the Agent with One Georgia Authority approval may unilaterally withdraw the guarantee.

(6) The OneGeorgia Authority or its Agent will provide lenders with specific instructions and forms to be used under the guarantee agreement.

(7) The term of the guarantee shall not exceed the lesser of ten years from the date of issuance of the guarantee OR the amortized useful life of the financed asset.

(8) The Lender's right to exercise the guarantee shall be enumerated in the ESBD Loan Guarantee Agreement; however, the following minimum stipulations must exist or be satisfied before a Lender may exercise the guarantee:

A) The Sub-Recipient must have defaulted on the Lender's loan pursuant to applicable requirements, covenants and terms contained within properly recorded loan and security documents;

B) The Lender must have exhausted all collateral foreclosure and recapture actions available to it pursuant to properly recorded loan and security documents; and

C) The maximum amount of the Lender's reimbursement under the Guarantee will be 50% of the original principal amount of the loan not collected through the sub-recipient's regular amortization of the approved loan or amounts collected under items A and B above.

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

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