Downtown Development Revolving Loan Fund (DDRLF)

A Downtown Development Revolving Loan Fund (DDRLF) provides businesses with a unique opportunity to fund their businesses through diversified funding sources at a low interest rate and with lesser owner equity in the project.

What is a DDRLF?

A DDRLF allows for gap financing at $250,000 or 40% of the total project cost (whichever is lesser). This is a non-recourse loan to the DDA. All liability is assumed by the prospective business.

While the DDA will prepare the application on behalf of the local business, the loan will be handled directly by the business. The Georgia Department of Community Affairs (DCA) will make the loan to the DDA, who will then provide the loan to the borrower.

Because Main Street Toccoa is a Main Street City, a special interest rate of 2% will be utilized for all DDRLFs in Downtown Toccoa.

Why Should You Take Advantage of the DDRLF?

• Lesser amount of owner equity needed to invest in the project.
• Lowers the overall debt service on the project.
• Lessens the amount of traditional bank financing needed.
• Increases your debt coverage ratio.

Example of Traditional Financing Verses DDRLF Gap Financing:

As you can see with the above example, not only does the owner have to put in less equity, but the bank also has less of a stake, making this an attractive financing situation for all parties involved in the loan.

Where to Begin?

• Contact us. We'd love to assist you with submitting a DDRLF on your behalf.
• Once this is accomplished, we will submit an Initial Project Application (IPA) on your behalf. We will need to work closely with you to get this accomplished.
• Your IPA will either be approved or denied by DCA.
• If denied, we are happy to work with you again to try to submit a more competitive application. If approved, the DDA will complete a full application on your behalf.
• You may then undertake the project.
• Following project completion, you will be awarded DDRLF funding.