Georgia CDBG Local Revolving Loan Fund

Georgia Department of Community Affairs, Community Development Block Grant Program


The RLF is used for low interest loans, leases, or other activities to expand economic opportunities, principally for persons of low-and moderate income. Its objective is to provide low interest financing to communities already receiving a Community Development Block Grant (CDBG) Employment Incentive Program (EIP) or Redevelopment Fund Program (RDF) grant. The program cap is $250,000 per loan.

Eligible Recipients:

Local Government

Eligible Recipients Detail:

Eligible applicants for funding under Georgia's CDBG programs are units of general-purpose local government. Excluded are metropolitan cities, urban counties and other units of government eligible to participate in HUD's entitlement programs for urban counties, or metropolitan cities.

Eligible Purpose:

Building Infrastructure; Anchor Institution Infrastructure; Last Mile Infrastructure; Digital Skills Training; General Infrastructure; Broadband Enabled Devices

Eligible Purpose Detail:

A recipient local government can use loans to finance private and public enterprises:

Loans to private, for-profit entities, when appropriate to carry out an economic development project that:
-Creates/retains jobs for low-and moderate-income persons;
-Prevents or eliminates slums and blight; or
-Assists businesses that provide goods or services needed by, and affordable to, low-and moderate-income persons.

Loans for activities carried out by public or private nonprofit entities (e.g. development authorities) including:
-Acquisition of real property;
-Acquisition, construction, reconstruction, rehabilitation, or installation of (i) public facilities (except for buildings for the general conduct of government), site improvements, and utilities, and (ii) commercial or industrial buildings or structures and other commercial or industrial real property improvements.

Funding Match/Terms:

Local policies determine interest rates for loan projects, which are below market, and generally fixed at 3%. Repayment period is typically three to ten years, depending on the asset financed. Local governments may charge annual administrative costs of $2,500 or 6% of the interest earned by the RLF, whichever is greater. The Loan Servicing Agent may charge a maximum annual fee of 1% of each RLF loan’s periodic payment. The RLF’s cash balance must not exceed $125,000 or 30% of the total RLF assets, whichever is greater.