Grant & Loan Programs: ESB
Eligible Participants
Eligible Lenders
- State or federally chartered bank or lending institution in "good standing" with regulatory services
- Lending institution must have a physical location in Georgia
- Lending institution must have established and demonstrated successful lending track record
Eligible Borrowers
- Entrepreneurs, start-ups and small business owners
- Must be "for profit" business enterprise properly organized in Georgia and located in an eligible county or a conditionally eligible county with population less than 150,000.
- Business owner or majority principal must live in an eligible county.
- Business must meet ESB eligibility requirements and lender's underwriting criteria for consideration
Eligible Activities
OneGeorgia will consider a broad range of loan applications. Desirable loans include, but are not limited to, the following:
- Building construction, conversion, expansion, repair and modernization
- Purchase of land, buildings, machinery and equipment
- Start-up and working capital (adequate collateral required such as inventory, A/R and other tangible assets)
Loan Guarantee Assistance
- Available on eligible loans ranging from $35,000 to $250,000; Requires 10% cash equity injection by borrower
- Interest rate (negotiated between lender and borrower) should not exceed prime + 2%
- ESB will guarantee 50%, or up to $112,500; ESB guaranteed loan cannot exceed 90% of collateral value
- Fees: lender must submit 1% of guarantee amount at closing; 0.5% annual fee of guarantee balance
- Company owners with greater than a 20% ownership must provide personal guarantees
- Must provide business plan, financial projections, marketing analysis and outline strength of management
Example of Loan Guarantee
Based on $250,000 Loan
- $25,000 private cash equity—10% of $250,000 loan
- $112,500 ESB loan guarantee— 50% of $225,000 balance after 10% by borrower
- $112,500 lender— 50% of $225,000 balance after 10% by borrower
- $250,000 maximum available
