1. Georgia Department of Community Affairs

2.  States have programs to:  Recruit (usually state funded)  Market (federal and state mix)  Develop Products (federal and state mix)  Existing Business Expansion  New Business Development  Entrepreneur and Micro-Enterprises  CDBG can be used in ALL Product Development to Bridge the Financing Gaps

3.  Some Businesses are prepared to move forward with investments; however,  Bank’s are reluctant to provide traditional business financing because of perceived credit and collateral risks.  These “grey areas” of perceived risks are more extensive than any time in the past 30 years.  Great projects exists in these “grey areas” of perceived risks that can be stimulated through public-private partnerships and…  Utilization of “gap financing” programs such as CDBG-Employment Incentive Program, Downtown Development RLF, Life Sciences Fund, etc.

4. SOLVENCY PROFITABILITY Solid Credit High Risk GREY AREA

5.  Need to protect, build & conserve capital  Need to increase reserves  Need to lower risks  Lower real estate values (less collateral)

6. SOLVENCY PROFITABILIY

7. STRUCTURING a CDBG GRANT–LOAN TO PRIVATE FOR-PROFIT BUSINESS

8. Loans to for-profit for purchase of fixed assets Acquisition, construction and rehabilitation of commercial or industrial land, building(s), machinery and equipment and other real property improvements * Loan repayments may capitalize or be placed into a Local, Regional or State RLF

9.  Recipient – City of Quitman  Sub-Recipient – Crown Health Care Laundry Services, Inc.  Grant/Loan Amount - $ 500,000  Project – Building Improvements  Private Investment - $ 500,000  Jobs – 140

10. SourceAmountUseAmount CDBG-EIP$ 500,000Building Improvement$ 470,000 Grant Administration$ 30,000 City$ 1,000,000Building Acquisition$ 1,000,000 City RLF$ 255,000Building Improvement$ 255,000 OneGA EDGE$ 375,000Building Improvement$ 375,000 CHLS$ 2,500,000Equipment$ 2,100,000 Working Capital$ 375,000 Inventory$ 25,000 Total$ 4,630,000Total$ 4,630,000

11. Eligible Activities:  Projects must alleviate a “slum or blighted” condition  Public infrastructure, public facilities  Loans to acquire and alleviate blighted buildings/facilities  Loan/lease payments may be capitalized into a local RLF  Any new jobs must be available to low- and moderate- income persons

12.  Acquisition and clearance of blighted property  Renovation and reuse of abandoned historical buildings  Commercial revitalization through façade improvements  Removal of environmental contaminants on property to enable it to be redeveloped for a specific use

13.  Recipient – City of Boston  Grant Amount - $343,591  Project – Renovate a blighted storefront alleviated deteriorated building conditions and stabilize the structure of the adjoining businesses.  Private Investment - $35,000

15. SourceAmountUseAmount CDBG-RDF$ 308,591Acquisition$ 7,400 Construction$ 257,000 Architectural$ 25,700 Grant Administration$ 18,491 City of Boston$ 35,000Architectural$ 35,000 TOTAL$ 343,591TOTAL$ 343,591

16. CDBG-EIP GRANTS PUBLIC INFRASTRUCTURE

17. Public Infrastructure Acquisition, construction and rehabilitation of Water - lines, tanks, wells, treatment plants, Sewer - gravity lines, force-mains, pump stations, treatment plants, Rail spurs - switches, track, track base, derails, stops Other - wastewater pretreatment plant, gas lines (“red”) Public Facilities Workforce development centers / Child care facilities Count your temporary construction jobs !!

18.  Recipient – Oconee County  Sub-Recipient – Zoom Bait Company, Inc. & St. Mary’s Healthcare Systems, Inc.  Grant Amount - $373,422  Project – sewer line extension  Private Investment - $7.5 Million  Jobs – Create 12, Retain 127 (172 existing jobs)

19. SourceAmountUseAmount CDBG-EIP$ 373,422Sewer Line Construction$ 157,778 Engineering Fees$ 18,933 Grant Administration$ 10,000 County$ 186,344Sewer Line Construction$ 157,777 Engineering Fees$ 28,567 Zoom$ 2,000,000Existing Capital Investment$ 2,000,000 St. Mary’s$ 5,500,000Building, M&E and F&F$ 5,500,000 Total$ 7,873,055Total$ 7,873,055

20. Zoom Bait Company, Inc. St. Mary’s Healthcare Systems Inc.

21. Program Income! LOCAL REVOLVING LOAN FUNDS (RLF)

22.  EIP/RDF loan payments capitalize local RLF  RLFs can be used for local economic development needs  Opportunities available to partner with local banks to finance eligible activities (same as EIP&RD) that create employment for L/M persons, eliminate blight, etc.  Unused funds can be recaptured or returned to regional RLF fund or state

23. Georgia Department of Community Affairs Community Development Finance www.dca.ga.gov (404)679-1587