The small business loan programs operated by the MGRC and its affiliate the Georgia Small Business Lender (GSBL) is another important tool to help promote economic growth in the region.

The MGRC created the Georgia Small Business Lender (GSBL) in 1982 as the lending arm of the agency. The GSBL is a private nonprofit corporation. While the four loan programs offered by the GSBL have different regulatory requirements, the goals of job creation and private investment are the same for each program. The staff works with each applicant to find the best fit for that particular business.

SBA 504

The U.S. Small Business Administration 504 Loan is the GSBL's largest loan program. The SBA created this economic development loan program in 1980, and the GSBL became a Certified Development Company (CDC) in February of 1983. This certifica­tion allows the Georgia Small Business Lender to make SBA 504 loans in the State of Georgia.

The Small Business Administration developed the 504 loan program to help small businesses in obtaining financing for hard assets (land, building, and equipment with a useful life of ten years or more).  Under the program, a private sector lender lends the applicant up to 50 percent of the eligible project cost.  The small business contributes at least 10 percent of the project cost (start-up businesses or special pur­pose facilities must contribute 15 percent, businesses that are both a start-up and are located in a special purpose facility must contribute 20 percent).  The borrower obtains the remaining 30 percent to 40 percent from the SBA. The interest rate on the SBA loan is fixed for the term of the loan and, depending on the collateral, the bor­rower has a choice of ten or twenty years for the term.

In FY 2008, the GSBL closed four SBA 504 Loans for a total of $1,958,000.  Those four businesses invested a total of $4.8 million and will create or save 40 jobs. At the end of the fiscal year, there were an additional seven loans approved but not closed. Once these loans are closed, the GSBL will lend these companies a total $3,162,000. The companies will invest $11,375,000.  Since 1983, the GSBL has closed 130 SBA 504 loans a total of $39,610,000.  The companies assisted have invested $114,000,000 and have created or saved over 1,300 jobs.  Examples of the types of businesses that this fund has helped include restaurants, manufacturers, car dealerships, construc­tion contractors, daycare centers and dentists.     

The three additional loan programs that the GSBL operates are the EDA Revolving Loan Fund, the Rural Development Revolving Loan Fund, and Robert Wood Johnson Rural Healthcare Revolving Loan Fund.

EDA Revolving Loan Fund

In 1992 the Economic Development Administration assisted the Middle Georgia Regional Commission in developing the EDA Revolving Loan Fund (EDA RLF).  This Fund lends money to businesses in the following counties:  Baldwin, Bibb, Crawford, Houston, Jones, Mon­roe, Peach, Pulaski, Putnam, Twiggs, and Wilkinson.

The EDA RLF is designed to help businesses in obtaining financing for primarily hard assets (land, building, and equipment with a useful life of ten years or more).  Under certain circumstances, the RLF will finance working capital provided there is suffi­cient collateral to secure the loan. The program participates with private sector lend­ers to fund projects.  The typical funding scenario is the private sector lender lends the applicant up to 57 percent of the eligible project cost.  The applicant contributes at least 10 percent of the project cost with the RLF lending the remaining 33 percent. The interest rate and term of the loan is determined by the Loan Review Committee and depends on the project and the assets being financed.

This past fiscal year, the GSBL approved and closed two EDA RLF loans for a total of $155,000.  The total investment by the businesses was $1,200,000. In the history of this EDA Revolving Loan Fund, the GSBL has made 40 loans to businesses for a total of $6,561,000.  The businesses assisted have contributed $30,809,000 and have cre­ated or saved 495 jobs. 

USDA Rural Development Revolving Loan Fund

In the same year that the EDA RLF was created, the GSBL with the assistance of the U.S. Department of Agriculture's Rural Development established the Rural Develop­ment Revolving Loan Fund.  This Fund lends money to businesses in rural areas of the GSBL service area.  Businesses in the following counties and areas are eligible for as­sistance: Baldwin, Crawford, Jones, Monroe, Peach, Pulaski, and Twiggs and the areas of Bibb and Houston outside the city limits of Macon and Warner Robins.

The RLF is designed to help businesses in obtaining financing for primarily hard as­sets (land, building, and equipment with a useful life of ten years or more).  Under certain circumstances, the RLF will finance working capital provided there is suffi­cient collateral to secure the loan. The program participates with private sector lend­ers to fund projects.  The typical funding scenario is the private sector lender lends the applicant up to 50 percent of the eligible project cost.  The applicant contributes at least 10 percent of the project cost with the RLF lending the remaining 40 percent. The interest rate and term of the loan is determined by the Loan Review Committee and depends on the project and the assets being financed.

This past year the GSBL made one Rural Development RLF Loan to assist with the expansion of a daycare center in Hawkinsville.  The GSBL loan was $128,000, and the project cost was $375,000. 

Since its inception, the Rural Development RLF has helped 17 businesses in Middle Georgia.  The amount of the loans is $1,779,000 with the businesses investing over $7 million and creating 200 jobs.

Georgia Rural Healthcare Revolving Loan Fund

In 2003 with the assistance of the Robert Wood Johnson Foundation, the Georgia Depart­ment of Community Health/Office of Rural Health Services (ORHS), the Georgia Rural Enrichment and Access Program (REAP) at Mercer University School of Medicine, and the GSBL established the Georgia Rural Healthcare Revolving Loan Fund (RLF).  This Fund lends money to healthcare providers in rural and underserved areas across the State of Georgia. 

The goal of the RLF is to sustain and increase access to healthcare as well as improve the quality of healthcare in rural and medically underserved areas of Georgia.  Pro­viders can obtain financing for primarily hard assets (land, building, and equipment with a useful life of ten years or more).  Under certain circumstances, the RLF will finance working capital provided there is sufficient collateral to secure the loan. The program participates with private sector lenders to fund projects.  The typical fund­ing scenario is the private sector lender lends the applicant up to 50 percent of the eligible project cost.  The applicant contributes at least 10 percent of the project cost with the RLF lending the remaining 40 percent. The interest rate and term of the loan is determined by the Loan Review Committee and depends on the project and the assets being financed.

In FY 2008, the GSBL made one Robert Wood Johnson Rural Healthcare RLF loan in the amount of $175,000 to assist with the opening of a doc­tor's office in Peach County. The cost to complete the project was $1.1 million.

To date, the fund has assisted four medical prac­titioners for a total of $482,000. The healthcare providers have invested a total $2,326,000 and have created 15 jobs.

In addition to the four programs operated by the GSBL, it also acts as the servicing agent for the Crawford County Employment Incentive (EIP) Revolving Loan Fund. The GSBL Board of Directors reviews applications for this fund and makes recommenda­tion to Crawford County.

More information about the loan programs is available at www.gsbl.org.