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​Downtown Development Revolving Loan Fund (DDRLF)

The Downtown Development Revolving Loan Fund (DDRLF) helps businesses invest in Downtown Toccoa with low-interest gap financing and reduced equity requirements.

 

Because Main Street Toccoa is a Main Street City, DDRLF loans in Downtown Toccoa qualify for a special 2% interest rate.

 

What Is the DDRLF?

The DDRLF provides gap financing of up to:

$250,000 or 40% of the total project cost (whichever is less).

 

How it works:

  • The Georgia Department of Community Affairs (DCA) makes the loan to the Downtown Development Authority (DDA).

  • The DDA loans the funds to the business.

  • The loan is non-recourse to the DDA.

  • The borrower assumes all liability.

  • The DDA prepares and submits the application on your behalf.

 

Why Use the DDRLF?

DDRLF financing can:

  • Reduce the amount of owner equity required

  • Lower overall debt service

  • Decrease reliance on traditional bank financing

  • Improve your debt coverage ratio

 

Example: $315,000 Project

 

Traditional Financing

Bank: 80% ($252,000)

Owner Equity: 20% ($63,000)

With DDRLF Gap Financing

Bank: 50% ($157,500)

Owner Equity: 10% ($31,500)

DDRLF: 40% ($126,000)

Total Project Cost: $315,000

 

With DDRLF participation, both the owner and lender carry less risk, making projects more financially feasible.​​

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How to Get Started:

  1. Contact us to discuss your project.

  2. The DDA submits an Initial Project Application (IPA) to DCA.

  3. If approved, a full application is completed.

  4. You complete the project.

  5. DDRLF funds are awarded after project completion.

If your application is denied, we will work with you to strengthen and resubmit it.​​

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Frequently Asked Questions

 

Can nonprofits apply?

Yes. Eligibility depends on project viability. Projects should generate steady cash flow and contribute to Downtown Toccoa’s economic vitality.

 

When are funds awarded?

Funds are awarded after project completion. If needed, you may secure a construction loan upfront and use DDRLF funds to pay it off once the project is complete.

 

What do I need to qualify?

A business plan with at least three years of financial projections demonstrating the ability to service debt. We can assist with business plan development.

 

Can I submit financial information directly to DCA?

Yes. If preferred, confidential financial documents may be submitted directly to DCA rather than through the DDA.

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Ready to explore funding?
Contact Main Street Toccoa to begin your DDRLF application.

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