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?

Example of Traditional Financing Verses DDRLF Gap Financing

Traditional Loan   DDRLF Gap Financing  
Bank: 80% $252,000 Bank: 50% $157,500
Prospective Owner Equity: 20% $63,000 Prospective Owner Equity: 10% $31,500
    DDRLF Gap Financing: 40% $126,000
TOTAL $315,000 TOTAL $315,000

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?

Frequently Asked Questions:

I'm only awarded DDRLF funding after project completion?

That's right. If you do not have the funds available to complete your project up-front (acqusition, rehabilitation, etc.) you will need to take out a construction loan. The DDRLF funds will be awarded at project completion, which can then be used to pay off that construction loan.

What if I don't want the DDA to see my confidential financial information during the initial project assessment or application submission?

While we prefer you send us all financial information we need, as it will help make your application more competitive, it is understandable that you may not want your local DDA to see the financial information required for the application. If this is the case, you are more than welcome to submit the information directly to DCA, who will then match it up with the application we submit.

Can non-profits apply for DDRLF funding?

Yes, you can. It depends on the project to determine the viability of funding awarded. Is there a building you want to turn into a business or business incubator? Will your project bring in a steady cash flow? Does it contribute to the economic viability of Downtown Toccoa? We would love to talk about your project with you.

What else should I know?

If you want to be awarded funding, you need a business plan. DCA needs to see at least three-year projections of revenue. They need to see that debt servicing will be met. If you don't have a business plan, we are happy to work with you to get one created.