The purpose of the Opportunity Loan Fund ("Let Atlanta Soar") is to stimulate job creation in the City of Atlanta. The Fund will provide " gap " financing to assist small and medium-sized businesses who create at least five new jobs in the City of Atlanta. The Atlanta Development Authority (ADA) will provide loans of $100,000-$200,000 at an interest rate of one-half (1/2) of the current prime interest rate plus 2% (1/2 Prime + 2%) with a minimum rate of 4%.
Capital Investment by the borrowers or others
Financing from private Entities
SBA affiliated loan programs
Eligibility
For profit businesses located in any commercial and industrial area of the City of Atlanta are eligible for this loan program provided that they meet the loan criteria established herein. Start-up businesses must have a minimum of 20% equity.
Special consideration will be given to employers in the six development priority areas in the New Century Economic Development Plan for the City of Atlanta. The six priority areas are
- Campbellton Road
- Donald Lee Hollowell Parkway
- Jonesboro Road
- Memorial Drive Corridor
- Simpson Road
- Stadium Neighborhoods
- Mechanicsville
- Peoplestown
- Pittsburgh
- Summerhill
Loan Size
Minimum of $100,000; Maximum of $200,000
Quality Employment
At least five (5) new jobs shall be created in the funded project within the first year of funding. Employers would be required to meet or exceed market-based wage thresolds for the specific industry and provide healthcare coverage.
Term of Loan
Maturity dates up to three (3) years for inventory and working capital; Five (5) years for fixed assets; Seven (7) years on leasehold improvements ( loan terms shall not exceed the lease agreement or financial institution terms); and 15 years for property acquistion.
Loan Participation
All the loans shall be matched by at least a 1:1 ratio with equity and / or a loan from a private sector financial institution.
Type of Collateral
Subordinated mortgage or lien on assets purchased with loan; personal guarantees will be required by all persons who own %20 or more interest in the business; corporate guarantees; other personal property; additional guarantees might be required and shall be determined on a case by case basis.
Interest Rate
Interest rates shall be set at 1/2 of prime + 2 with a minimum interest rate of 4%.
Monitoring and Enforcement Standards
To ensure that the businesses receiving loans are achieving the job creation results, ADA will monitor the performance of each loan recipient for the first two years. We will require businesses to provide compliance reports semi-annually.
Fees
Application fee of $100 and a loan commitment fee of 2% of loan amount are to be paid at time of application and commitment respectively.
PDFs
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
