Middle Georgia RDC | Economic Development News

Economic Develompent

The Middle Georgia Reginoal Commission is an active participant in local and regional economic development efforts. The MGRC is also designated as an Economic Development District (EDD) by the U.S. Department of Commerce.

The MGRC provides an array of economic development services to its member governments. Activities include economic impact modeling, industrial recruitment support, strategic economic planning, research, financing, and special projects.

Economic Impact Modeling

The MGRC can assist its members and local economic development agencies, such as industrial development authorities, with estimating the impact of locating a company in a community. The impact models used by the MGRC are the Local Economic Impact Analysis (LOCI) developed by the Georgia Institute of Technology and the MGRC Tax Revenue Impact Model developed by the Middle Georgia Regional Commission. The LOCI model, which meets the requirements of most state grant programs, is an extensive tool that requires detailed information from the prospective firm. The MGRC model is usually used to get a quick estimate on tax revenues generated by a potential industry and can be completed with some basic information about the prospect. In FY 2008, the MGRC prepared four tax revenue impact models.

Industrial Recruitment

The staff of the MGRC works extensively to assist our member governments and the economic development partners with industrial recruitment. The services offered include:

Providing demographic information requested by prospects;
Meeting with prospects;
Mapping of available properties and buildings;
Negotiating and structuring deals;
Assisting with the industrial site certification process;
Serving as a liaison between federal, state and local economic development resources; and
Assisting with site selection and development.

Strategic Economic Planning

During 2008, the Middle Georgia Regional Commission assisted its member governments and their economic development partners with economic development projects and an update to the Comprehensive Economic Development Strategy. The CEDS plan assists member governments with short- and long-term economic planning. The MGRC staff worked with local officials and other interested parties in each county to update the strategy for each county for the region in its entirety.

This year was full of economic development successes across the region-- both large and small. Highlights for 2008 include:

Academy Sports and Outdoors broke ground on its $70 million warehouse and distribution facility in Twiggs County. The installation of water and sewer infrastructure at Twiggs County Industrial Park has been initiated. EDA, OneGeorgia, CDBG/EIP, and SPLOST funds are being used to fund the infrastructure improvements.
Kumho Tire Georgia announced the construction of its first U.S. manufacturing facility to be located in Sofkee Industrial Park in Bibb County. Kumho will invest $225 million and create 450 jobs.
The City of Warner Robins continued the development of a plan to create a Maintenance Repair and Overhaul facility (G-Ramp) adjacent to Robins Air Force Base. During this period, preliminary design of the facilities has been completed, cost estimates have been developed, and private industry need has been determined. In addition, the City of Warner Robins and Robins Air Force Base executed a Strategic Partnership Agreement outlining a willingness to share resources and services in support of G-Ramp.
The Development Authority of Monroe County sold the remaining 257 acres of Rumble Road Industrial Park for the development of a warehouse/distribution industrial park.
Middle Georgia Economic Development District facilitated the development of a foreign trade sub-zone for the 11-county district. Funding for the foreign trade zone application was secured from the Central Georgia Joint Development Authority. When approved, the sub-zone will consist of 950 acres of land with the foreign trade zone designation and benefits. Four potential users have been identified throughout the region.
Jones County secured funding to construct the entrance road into the Georgia Regional Industrial Park, a joint venture with Jones, Bibb, and Twiggs Counties.
Landmark Assets, LLC acquired the Pillowtex Mill property in downtown Hawkinsville for the development of loft housing, a community market, and retail space.

Financing Services

Another service provided by the Middle Georgia Regional Commission is financing for economic development through federal and state economic development programs, including but not limited to OneGeorgia, Georgia Department of Community Affairs (DCA), U.S. Department of Commerce Economic Development Administration, U.S. Department of Agriculture Rural Development.

During 2008, MGRC staff:

Secured funding from the Economic Development Administration for the Academy Sports and Outdoors warehouse and distribution center located in the Twiggs County Industrial Park.
Submitted applications to OneGeorgia, Georgia Department of Community Affairs and the Economic Development Administration for Kumho Tire Project in Sofkee Industrial Park in Bibb County.
Secured funding for the construction of a rail spur to serve Alterra Bioenergy LLC in Tremon Street Industrial Park in Wilkinson County.

Special Projects

An example of an ongoing project is the assistance the MGRC provides to the 21st Century Partnership. The 21st Century Partnership mission is to support Robins Air Force Base (RAFB). The Base is the largest economic engine in the region, and the Partnership works to provide an environment that will promote its continued existence and expansion.

During 2008, the Middle Georgia Regional Commission:

Conducted research on alternative energy initiatives for RAFB.
Updated the housing database.
Updated the economic impact model.
Coordinated semi-annual Joint Land Use Study Committee meetings.

Two additional special economic development projects are the development of a regional marketing and cooperation plan and support of the City of Warner Robins to establish an aerospace maintenance and repair facility known as G-Ramp.

RDC Loan Programs

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.