Georgia
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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 to this site.

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/data/RuralUrbanContinuumCodes/

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.

Where Do You Apply?

Individuals may contact their local Rural Development Area Office.

Last Updated : May 21, 2004