LOAN RESOURCES FOR DEVELOPMENT IN DOWNTOWN DALTON

Downtown Dalton Development Authority (DDDA) will provide assistance in accessing projects and determining which loan program(s) are most suitable. DDDA has access to many additional funding resources other than those listed below depending on the eligibility of the project and borrower. It is always advisable to contact DDDA in person to discuss loan eligibility.

• SBA / 7(a) Guaranteed Loan Program – These loan guarantees are available to businesses which cannot borrow on reasonable terms from conventional lenders. The loan proceeds can be used for the acquisition of land and buildings, machinery and equipment, inventories; working capital; building renovation; accounts receivable; leasehold improvements; and refinancing of existing debt. SBA guarantees 75% of loans over $150,000 with a maximum guarantee of $1 million. Terms range from one to twenty-five years depending on purpose, ability to repay, life of assets, and other factors.
• SBA / Section 504 Loan Program – The 504 loan program is a long term, fixed asset, subordinate mortgage financing program for healthy and expanding small businesses. Eligible uses of the loan proceeds include land acquisition and site improvements; acquisition, construction, or renovation of an existing building; machinery and equipment purchase; a major addition to an existing building; a 10% contingency of the projected cost of construction; professional fees necessary to a project, and leasehold improvements to an existing building. The borrower is required to contribute at least 10% of the total project cost and loan amount is the lesser of 40% of fixed assets or $1.5 million.
• Revolving Loan Fund – This fund may be accessed for fixed assets and operating capital. Financing of at least 50% of the loan amount must be obtained from a private commercial lender and 10% of total project cost must be invested by borrower. The RLF will fund up to 50% of the loan amount or $200,000, whichever is less. The RLF loan term is generally the same as the bank, up to 10 years, and the interest rate is 4% below prime (minimum 4%). The private lender sets its own rate.
• Georgia Cities Foundation Revolving Loan Fund – Loans must go through a local authority or municipality, therefore, each applicant must work closely with the Downtown Dalton Development Authority. Each application will be reviewed based upon an analysis of the proposed projects, potential enhancement of downtown development opportunities, credit worthiness, overall project feasibility, project impact and soundness of project strategy.
• Downtown Development Revolving Loan Fund (DD RLF) – Loans must go through a municipality; therefore each applicant must work closely with DDDA. Funds may be used for real estate acquisition, development, redevelopment, construction, purchase or lease of equipment and other assets (on a limited basis) and lease back or sale or project assets (when approved by DDDA). The loan limit is $250,000 per project with a below market interest rate. Amortization is typically over a 15-year period with a 10-year balloon payment.