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Community Adjustment and Investment Program

Description:

This program is a partnership between the North American Development Bank (NADBank) and the federal government. It is 
designed to help communities that have suffered significant job losses as a result of NAFTA by creating new sustainable jobs and preserving jobs 
in at-risk industries. The program increases the availability of business credit in these communities, thereby encouraging business expansion and 
new business development.

Community Eligibility

Eligibility is based upon an analysis of NAFTA related job losses within the context of local unemployment rates. The current eligibility 
standards are as follows:

The most recent 12 month average county unemployment rate must be at least on percentage point above the national average 
for the same time span.  More than a 300 NAFTA-related job loss in a rural area, or 500 for an urbanized area.

Unemployment data is available at: http://cali.sppsr.edu/NADBANK/index.cfm.

To see the Georgia communities that are currently eligible for CAIP funding, please go here.

Other Criteria

Applicants who meet the CAIP criteria may be eligible for certain credit enhancements under the Guaranteed B&I program for rural areas and 
the SBA 7(a) program for urban areas. In eligible communities, applicants do not have to compete with the other areas for funding. The 
maximum loan amount that will be considered is $5 million, however, the CAIP Finance Committee is still willing to consider proposals above the 
$5 million level until an agreement is worked out with USDA on the cost of making these large loans.

Guaranteed B&I loans can only be made in areas deemed eligible by Rural Development. 

Beale Codes, for determining an areas "urban" status, can be found at http://www.ers.usda.gov/briefing/rural/codes/rucc.htm.

Loan Processing:

Applicants should contact their local lender for loan processing. CAIP loans are only available when conventional lenders cannot provide the 
requested financing without assistance. Lenders will submit their loan package to either the USDA, Rural Development office or the SBA 
district office, as applicable.

NADBank's participation is limited to less than 50% of the total loan, therefore, a lead lender will also be needed. The CAIP Finance 
Committee in Washington meets weekly to assure all loan requests are handled promptly.

Status of CAIP

As of September 30, 1999, Georgia ranks second in the nation, trailing only Louisiana, in loans made under the CAIP program. $16,148,200 
has been obligated for rural businesses during the past two years. This partnership with NADBank has created 643 jobs, directly benefiting the 
people living within the most distressed rural communities of our State.

Where Do You Apply?

Individuals may contact their local Rural Development Area Office.

Last Updated : January 26, 2004