Chapter 413-3 BUSINESS GROWTH FUND
This regulation governs the operation of the OneGeorgia
Business Growth Fund Program as established by the OneGeorgia Authority
(O.C.G.A. § 50-34-1). The OneGeorgia Authority
authorizes the Department of Community Affairs (herein after referred to as
"agent") as the implementing entity for purposes of the Business Growth Fund
Program's operation and administration.
The definitions for purposes of this regulation are identical
in all respects to the terms defined in O.C.G.A. § 50-34et
seq.
Business Enterprise: A business engaged in
manufacturing, producing, processing, assembling, repairing, extracting,
warehousing, handling, or distributing any agricultural, manufactured, mining,
or industrial product or any combination of the foregoing; a business engaged
in furnishing or facilitating communications, computer services, research, or
transportation; a business engaged in tourism; a business engaged in commercial
or retail sales or service; a business engaged in construction; and corporate
and management offices and services provided in connection with any of the
foregoing, in isolation or in any combination that involves, in each case,
either the creation of new or additional employment, the retention of existing
employment or payroll, or the increase of average payroll for employees of such
enterprise.
Project: Project generally describes a situation
where:
| a) |
a business enterprise is
considering or planning an expansion of employment; |
| b) |
a business enterprise is considering or
planning to modernize or enhance their equipment or processes in order to
increase the competitiveness of the business enterprise or to enhance the
average payroll for employees of such enterprise, or |
| c) |
an individual, group of individuals, or
consortium of business enterprises seeks to form a new business venture, has
raised significant private investment and has thoroughly explored other public
and private financing options. |
Time-Sensitive: Time-sensitive generally describes
a situation where:
| a) |
the applicant
can demonstrate the project requires financial assistance in a time-frame not
provided for in the OneGeorgia Equity Fund competition cycle (see Equity Fund
Rules at 413-1), or |
| b) |
the project
involves intensive communication with the business enterprise for the purposes
of financial analysis or underwriting, as deemed necessary by the Authority,
and thus does not lend itself to the competition cycle provided by the Equity
Fund cycle (see Equity Fund Rules at 413-1). |
The purpose of the OneGeorgia Business Growth Fund Program is
to provide financial assistance to eligible applicants that are attempting to
facilitate a time-sensitive project with an existing business or new business
venture where other local, state, and federal financing sources are not
available and, where the Business Growth Fund is sought to promote the health,
welfare, safety and economic security of the citizens of the state through the
development and/or retention of employment opportunities.
Eligible applicants and recipients of grant or loan funds
awarded under this program shall include, but are not limited to,
general-purpose local governments (municipalities and counties), local
government authorities, joint or multicounty development authorities, or any
combination of the above. All local government units that are party to an
application must be in compliance, where applicable, with the requirements
regarding
* comprehensive planning (O.C.G.A. § 50-8-1et
seq.),
* report of local government finances (O.C.G.A. § 36-81-8(b)),
* local service delivery strategies (O.C.G.A. § 36-70-1et seq.),
and
* local government authorities registration (O.C.G.A. § 36-80-16et
seq.).
| 1. |
Grant and loan funds appropriated or
otherwise made available to the Authority will be made available to eligible
applicants for eligible projects when the applicant demonstrates a
time-sensitive business need and meets the criteria established by the
Authority. |
| 2. |
The Authority will
establish and announce funding availability. Applications will be accepted
throughout the fiscal year and will be reviewed based upon the criteria
provided in Rule
413-3-.07. |
| 3. |
Eligible applicants must apply for
assistance under this program in a format and manner described by the
OneGeorgia Authority. Application guidelines may be obtained from the
Authority:
OneGeorgia Authority
1202-B Hillcrest Parkway
Dublin, Georgia 31021
(478) 274-7734
www.One
Georgia.org
|
| 4. |
The
application manual provided will include information outlining program
requirements, forms, mailing addresses, telephone numbers of contact persons
and other necessary and pertinent information. |
Eligible uses of funds provided under the Business Growth Fund
include those activities and the provision of facilities and services as
described in O.C.G.A. § 50-34-1et
seq.
Eligible uses of funds for this category shall include, but are
not limited to:
| 1. |
Public Land and
Building Acquisition, Site Development, Construction, Improvement or
Modification;
| a) |
For siting and/or improving
publicly owned infrastructure, |
| b) |
For publicly owned industrial and technology parks, and airports, |
| c) |
For publicly owned improvements for
tourism development. |
|
| 2. |
Public Infrastructure Improvements;
| a) |
Publicly owned water and/or sewer facilities and improvements, |
| b) |
Publicly owned improvements for pollution
control, |
| c) |
Publicly owned railroad
spurs, |
| d) |
Publicly owned road
improvements, |
| e) |
Drainage
improvements on public rights of way, |
| f) |
Site preparation on publicly owned
land, |
| g) |
Publicly owned
telecommunications assets. |
|
| 3. |
Acquisition, Improvement or Modification
of Publicly Owned Machinery and Equipment, including plans and specifications
for such machinery and equipment. 4. Acquisition, Improvement or Modification
of Publicly Owned/ Privately Leased Fixed Assets (sites and buildings) and/or
Machinery and Equipment, including plans and specifications for such machinery
and equipment. |
It is important to note that the proposed use of
Business Growth Fund monies will dictate whether the funds can simply be
granted to the applicant, or whether they will be granted to the applicant but
require a lease agreement. In general, public acquisition or improvements of
public facilities and infrastructure can be paid for by the applicant with
Business Growth Fund monies and do not have to be leased to a subrecipient
through a development authority. Where Business Growth Fund monies are expended
for the public acquisition and/or improvement of privately used land,
buildings, machinery and equipment, or other private assets, the assets must be
owned or controlled by the applicant and leased or subleased to the private
user.
The Authority may also require the applicant to
recapture some or all of the Business Growth Fund assistance if ownership of
project assets is transferred to an entity other than the applicant. The
Authority also reserves the right to establish criteria for the recapture of
grant funds upon transfer of project assets to an entity other than the
applicant or upon any event that violates state law, the public purpose of the
grant program, or any of the grant conditions. All recaptured funds must be
returned to the Authority, unless otherwise specified by the
Authority.
All applications received from eligible applicants will be
reviewed in a timely manner to determine the merit of the applications and the
proposed use of funds.
| 1. |
Applications
will be reviewed based upon enhancement of economic development opportunites.
Projects will be judged by the extent to which they address the Authority's
objectives which include but are not limited to:
* Increase in the numbers and/or types of jobs,
* Retention of quality jobs,
* Improvement in quality of jobs,
* Diversification of local or regional economy,
* Strengthening regional industry clusters,
* Increase in private capital investment and new investment
opportunities,
* Increase in new business starts and entrepreneurial
opportunities. Projects will be rated by criteria including but not limited
to:
* Project readiness,
* Project feasibility,
* Degree of private investment or support,
* Degree of local financial commitment,
* Reasonableness of cost estimates,
* Strength of business plan,
* Rationale for equipment or process improvements,
* Impact on the state, regional and community economy and tax
base,
* Value of property enhancements relative to state's economic
development strategy,
* Consistency with local and regional development goals and
objectives,
* Financing need (applicant demonstration that no other funds
available to complete the project),
* Tier status.
|
| 2. |
All applications for funding from this
program must provide written certification from the applicant, addressed to the
OneGeorgia Authority, to the effect that the applicant is authorized under the
laws of the State to carry out the project and activities that are the subject
of the application, and that the proposed expenditure of funds is in accordance
with all applicable legal requirements. |
| 3. |
In its review of applications, the
Authority may, at its discretion, consult with other individuals or agencies as
appropriate for receiving advice. |
| 4. |
The criteria in this rule are designed to
assist the Authority in making its decision and only constitute minimum
standards. Additional factors may be considered depending on the nature of
particular projects and their relative merit compared to competing proposals,
and depending on the availability of funding at the time of
application. |
| 5. |
The decision that
the Authority makes shall be final and conclusive. |
| 1. |
Business Growth Fund grants are limited to
$500,000 per project. The Executive Director of the Authority may waive this
limit under exceptional circumstances. |
| 2. |
Applications will be considered for
funding when the project takes place in a Tier 1 or Tier 2 county. |
| 3. |
Applications from Tier 3 applicants will
also be considered where those counties:
| a) |
Share a border with a Tier 1 or Tier 2 county; and |
| b) |
Are part of a project that has been
endorsed in writing by a neighboring Tier 1 or Tier 2 county;
and |
| c) |
Can demonstrate
a significant economic benefit to a neighboring Tier 1 or Tier 2 county through
regional impact, revenue sharing or other evidence of regionalism. |
|
| 4. |
Once selected for funding,
grant funds will be made available by the Authority through an award contract
incorporating by reference the approved final application and adding any
special conditions that may be necessary or appropriate. As part of the award
conditions, recipients must file a report on the impact and performance of the
project, in a format prescribed by the Authority. |
| 5. |
The authority may approve a grant subject
to certain general or special conditions that will be incorporated into the
grant award document. Because of the limited amount of funds available, the
Authority may also approve and/or award an amount less than the amount
requested in the application. The applicant will have thirty (30) days from the
date of award to accept any special conditions and/or the reduced grant amount.
If the applicant fails to accept the special conditions or lower grant amount
within the required period, the Authority may unilaterally withdraw the grant
award. |
| 6. |
Grant or loan approvals
will be issued with an expiration date. If an applicant fails to request a
drawdown of funds prior to the expiration date, the application approval will
expire and funds will not be issued. Extensions may be granted by the Authority
under exceptional circumstances. |
| 7. |
Awards will be committed to competitive, time-sensitive projects. The Authority
may deny approval of an application when the application is received after the
company/project has initiated or completed the proposed activities. |
In addition to the certifications made on the fact of the award
statement, the recipient must further certify that:
| 1. |
No applicable state laws, rules,
regulations, or applicable local ordinances shall be violated in carrying out
this project and expending Business Growth Fund monies. |
| 2. |
Recipient's internally adopted procurement
procedures meet applicable state requirements and will be adhered to and
documentation shall be maintained to document such adherence. |
| 3. |
Recipient's accounting records shall be
maintained in a manner consistent with generally accepted government accounting
standards. |
| 4. |
If the Recipient is a
development authority, then the project financed in part by Business Growth
Fund monies shall only be leased or sold or administered as provided by Section
36-62-7 of the Official Code of
Georgia Annotated, local constitutional amendment, local law passed by the
legislature, or other general enabling legislation, as applicable. |
| 5. |
The recipient shall undergo an annual
financial audit conducted in accordance with government auditing standards
established by the comptroller general of the United States. The recipient
shall submit to the Authority copies of all audits that cover all or part of
the grant period. |
| 6. |
No real or
apparent conflict of interest shall be engaged in by any person or party (or
any person or party with whom they have family or business ties) who is
involved in any aspect of the Business Growth Fund project. |
