Top Financial Tools
Local governments which undertake redevelopment and revitalization efforts in certain older commercial and industrial areas can now qualify those areas for the State’s maximum state job tax credit of $3,500 per job. The incentive which is available for new or existing businesses which create two or more jobs are credits which can be taken against the business’s income tax liability and state payroll withholding. The credits are available for areas designated by DCA as “Opportunity Zones”. DCA will consider designations for areas that are within or adjacent to a census block group with 15% or greater poverty where an enterprise zone or urban redevelopment plan exists.
DCA Downtown Development Revolving Loan (DDRLF)
The purpose of the Downtown Development Revolving Loan Fund (DD RLF) is to assist cities, counties and development authorities in their efforts to revitalize and enhance downtown areas by providing below-market rate financing to fund capital projects in core historic downtown areas and adjacent historic neighborhoods where DD RLF will spur commercial redevelopment.
GA Cities Foundation Revolving Loan Fund (GCFRLF)
Applications are evaluated based on leadership, accountability, long-term sustainability, and potential for private investment. Projects should encourage spin-off development, add jobs, promote downtown housing, or add to the cultural enrichment of the community. Each application must also undergo credit underwriting. Eligible Projects include real estate acquisition, building rehabilitation, new construction, green space and parks. Ineligible uses of funds are operating expenses and administration, local revolving loan funds, public infrastructure projects, streetscapes, and facade projects.
Local Revolving Loan Funds (RLF)
Local Revolving Loan Funds (RLF) are potential sources of funding for new or expanding businesses in select areas throughout Georgia. The goal of each RLF is the creation of job opportunities, primarily for low- and moderate-income persons. Funds for each RLF are capitalized with a Community Development Block Grant (CDBG) Employment Incentive Program (EIP) grant that is loaned to a private business or a Redevelopment Fund (RDF) loan(s). As loan repayments are made, the RLF is capitalized by the local government that was the recipient of the initial CDBG EIP or RDF award. RLF loan applications are received and reviewed by the local RLF committee and government that operate the RLF.
Equity Fund (One GA)
The purpose of the Equity Fund is to provide a program of financial assistance that includes grants, loans and any other forms of assistance authorized by (O.C.G.A.50-34-1 et seq.) to finance activities that will assist applicants in promoting the health, welfare, safety, and economic security of the citizens of the state through the development and retention of employment opportunities in areas of greater need as defined by the Georgia Business Expansion and Support Act of 1994, as amended (O.C.G.A.48-7-40).
Employment Incentive Program (E.I.P.)
The EIP is a financing program that may be used in conjunction with traditional private financing to carry out economic development projects which will result in employment of low and moderate income persons. Many types of projects can be financed with EIP funding. However, projects creating opportunities for low and moderate income persons to advance themselves by obtaining employment, greater job security, better working conditions, job training, enhancement of workplace skills and advancement opportunities receive the greatest consideration.
GA Environmental Facilities Authority (GEFA)
GEFA is a state agency that administers a wide variety of programs that provide financial assistance and other support services to improve Georgia’s environment. GEFA’s program focus areas are water, wastewater, solid waste, recycling, land conservation, energy efficiency and fuel storage tanks for local governments, other state agencies and non-profit organizations.
Redevelopment projects can be the most challenging economic and community development projects a local government undertakes. The Redevelopment Fund gives local governments access to flexible financial assistance to help them implement projects that cannot be undertaken with the usual public sector grant and loan programs. The Redevelopment Fund finances locally initiated public/private partnerships to leverage investments in commercial, downtown and industrial redevelopment and revitalization projects that wouldn't proceed otherwise.
Community Development Block Grant Loan Guarantee Program (Section 108 Program)
The CDBG Loan Guarantee Program (Section 108 Program) is an economic and community development financing tool authorized under Section 108 of Title I of the Housing and Community Development Act of 1974, as amended. The program is a method of assisting non-entitlement local governments with certain unique and large-scale economic development projects that cannot proceed without the loan guarantee. In order to be eligible a project must meet all applicable CDBG requirements and result in significant employment and/or benefit for low and moderate income persons. Projects that are eligible for financing under existing federal, state, regional or local programs will generally not be considered for guarantee assistance unless the programs would fail to fully meet a project's need.
Appalachian Regional Commission Economic Development Grant Program
This program is funded by the Appalachian Regional Commission and is designed to provide matching grant funds to eligible applicants in support of economic development projects. There are 4 goal areas that potential projects should relate to: 1) Increase job opportunities and per capita income in Appalachia to reach parity with the nation, 2) Strengthen the capacity of the people of Appalachia to compete in the global economy, 3) Develop and improve Appalachia's infrastructure to make the Region economically competitive and 4) Build the Appalachian Development Highway System to reduce Appalachia's isolation.
State Historic Preservation Tax Incentives
The Georgia State Income Tax Credit Program for Rehabilitated Historic Property allows eligible participants to apply for a state income tax credit equaling 25% of qualifying rehabilitation expenses capped at $100,000 for personal, residential properties, and $300,000 for income-producing properties. The credit is a dollar for dollar reduction in taxes owed to the State of Georgia and is meant to serve as an incentive to those who own historic properties and wish to complete a rehabilitation. The Georgia Preferential Property Tax Assessment Program for Rehabilitated Historic Property allows eligible participants to apply for an 8-year property tax assessment freeze. This incentive program is designed to encourage rehabilitation of both residential and commercial historic buildings by freezing property tax assessments for eight and one-half years.
Federal Rehabilitation Investment Tax Credit Program (RITC)
The Federal Rehabilitation Investment Tax Credit Program (RITC) provides owners of "certified historic structures" the opportunity to apply for a federal income tax credit equal to 20% of the rehabilitation cost. Only income-producing properties are eligible to participate in the program and the National Park Service must certify the rehabilitation in order to receive the credit.
Business Improvement Districts (B.I.D.'s)
A business improvement district (BID) is a defined area within which businesses pay an additional tax or fee in order to fund improvements within the district's boundaries. Grant funds acquired by the city for special programs and/or incentives such as tax abatements can be made available to assist businesses or to recruit new business. BIDs may go by other names, such as business improvement area, business revitalization zone, community improvement district, special services area, or special improvement district. BIDs provide services, such as cleaning streets, providing security, making capital improvements, marketing, construction of pedestrian and streetscape enhancements, and marketing the area. The services provided by BIDs are supplemental to those already provided by the municipality.