The “Bank on Blue Ridge” loan program has officially been launched by the city’s Downtown Development Authority (DDA).
In a recent statement issued by the DDA, the loan program encourages the economic development of the Central Business District (CBD) of Blue Ridge through the Georgia Cities Foundation (GCF) and the Georgia Department of Economic Affairs by offering “below market-rate gap financing.”
The funds may be used to fund the purchase of land and property real estate, expansion, rehabilitation, and/or equipment. However, funds may not be used for operating capital, payment of taxes and/or product development.
Both the DDA Chairman Cesar Martinez and Economic Development Committee Chair Gene Holcombe confirmed the money would come from the GCF’s revolving loan program or from the Georgia Department of Economic Affairs’ revolving loan program. Martinez said, “This loan is generally in conjunction with a standard loan from a financial institution, like a bank where the borrower has a percentage of equity, followed by a bank loan and then the GCF loan is at a better percentage interest rate. That rate along with the bank rate, gives the borrower a lower aggregate rate.”
When asked if an interested business owner must go through the DDA to apply for these funds, Holcombe said, “Now that the City of Blue Ridge has established a DDA, we are the approval authority to review and approve applications that then move on to either of those sources for consideration.
“If a business or developer wants to take advantage of these programs, they have to go through the City of Blue Ridge DDA to start the process. This program provides below market financing which are more favorable terms than conventional financing.”
Martinez added, “The Business must approach the DDA’s Economic Development Committee for the documents and help in filling them out for transmittal to the GCF. The Blue Ridge DDA’s approval is necessary prior to the application being accepted by the GCF.”
Holcombe said the two steps are providing an overview of the project via an application to the DDA and, upon approval by the DDA, the second step is to apply to the GCF or Economic Affairs for their approval. He added the amount of money requested makes a difference in the approval process.
As far as monetary benefits to the DDA for this program, there are none, both men say. “This is not a revenue generating program but rather a service we provide to business owners or investors to help in making an investment in our CBD more financially appealing,” Holcombe said.
Martinez said of his experience with the program, “The program sponsored by the Georgia Cities Foundation’s revolving fund helped me in the purchase of my building in downtown Blue Ridge by offering me a low interest loan that in conjunction with a loan from my bank, resulted in a blended mortgage rate below what was being offered at the time from traditional lending institutions. The program is geared toward improvements or purchases of buildings in small downtowns. Our DDA can help others in facilitating the process of revitalizing Blue Ridge’s downtown area. The process takes some time but is well worth the investment.”
The statement went on to say “applicants for funds must demonstrate that they have a viable downtown project that is consistent with the community’s plans for downtown development, have a positive economic impact, and clearly identify the proposed uses of the loan funds.”
Those interested in the program should contact \Martinez at cesarmart2dda@gmail.com.