Economic Development Financing Products
Industrial Development Bonds Most communities located in the Southeast Industrial Development Association region have economic development authorities/ industrial development boards in place that can provide low interest, tax-exempt industrial development bond financing for the acquisition of property, building construction and equipment purchases. Bonds can be used for manufacturing facilities, and up to 25% of the bond issue can be used for ancillary facilities (office, warehousing, etc.) at the same location as the manufacturing facility. Eligibility depends on strength and credit of locating and/or expanding company, type of business, investment and quality job creation.
Small Cities Community Development Block Grant (CDBG) Funds Georgia, Tennessee and North Carolina have CDBG funds available for economic development loan and grant programs. These funds are awarded for infrastructure grants and building or capital loans to assist industrial manufacturing companies in locating and expanding operations in their communities and providing jobs to their citizens. Terms and conditions of the CDBG will depend on the scope of the project and the criteria of the individual state.
Tennessee Valley Authority Economic Development Loan Fund TVA makes available to communities throughout their power service area gap financing low interest economic development loan funds. The level of funding is based on $5,000 per job created within the first 5 years up to 25% of the project cost not to exceed $2 million. Loans are for fixed assets only with a maximum of 10 yearsand are typically below market rate.Specific rates are determined on a case by case basis after consideration of the loan evaluation criteria.
Small Business Administration
Rural Development Business & Industry Loans The Business and Industry (B & I) Guaranteed Loan Program guarantees loans by eligible local lenders to businesses to benefit rural areas. Loan guarantees are limited to a maximum of $10 million per borrower and are typically for up to 80%. Eligible loan purposes include: