Georgia Development Authority Thomas Carter Executive Director

Georgia Development Authority Thomas Carter, Executive Director

GDA Board of Directors l l l l Gary Black, Chairman – ex officio - State Commissioner of Agriculture Greg S. Griffin, Vice Chairman – ex officio - State Auditor Jacob Redmon, Secretary - appointed Pat Wilson – ex officio - Commissioner of Ga. Dept. of Economic Development Steve Singletary – appointed Russ Goodman – appointed Glen Whitley - appointed

Introduction GDA is a self funded long term lender to commercial farmers and agribusinesses in the State of Georgia l We are a public corporation and an instrument of the State of Georgia l

A Bit of History Originated in 1953 with the creation of the Livestock Development Authority l Original funding of $1, 000 came from the Georgia Rural Rehabilitation Corp which was funded by the federal government l GDA loan portfolio has grown from this original investment to $87 Million l

Mission l l l GDA exists to provide and ensure that an alternative source of sound credit is available to the farmers and agribusinesses in the State of Georgia at a reasonable cost Rural communities are strengthened when sound farms and agribusinesses contribute to their economies This comes back around to the original rural rehabilitation intent

How We Operate Funding – GDA funds its programs primarily through selling loans, borrowing capital and reinvestment of profits l Loan Products – (1) GDA makes direct loans to commercial farmers and agribusinesses – (2) GDA participates with other local lenders through our Insured/Guaranteed Loan Program l

Loan Programs - Traditional l l l Requires 1 st lien on farm/agribusiness land Maximum Loan Amount - 75% of AV or purchase price (whichever is less) Loan Terms - 5 to 30 years Repayment Schedule - Based on income stream of operation being financed Interest Rates – GDA offers adjustable or fixed interest rates $1. 2 Million loan limit

Loan Programs - START program is for beginning farmers or agribusinesses l Eligible borrowers must have 5 years or less of operation time l Primarily for purchase of commercial farm land l $400 K loan limit l

Loan Programs – START (cont) 85% LTV maximum l 1 st lien on farm real estate (no dwellings) l Allows for 100% total financing by combining GDA with a 2 nd mortgage lender l Contingent on availability of funds l

Advantages Low closing costs l $100 application fee l No state intangible tax on amount borrowed l 1/2% loan origination fee on amount borrowed when loan closes l Borrower chooses the attorney to prepare title l

Other GDA Activities Scholarships – The David Skinner GDA Scholarship - 8 - $1, 500 scholarships awarded to high school graduates entering college that plan to major in agriculture l Contributions to Agri Youth programs (4 -H, FFA, GYFA, etc) in excess of $30, 000 each year l

Conclusion l l l GDA provides long term credit to farmers and agribusinesses either thru direct funding or insured/guaranteed loans with local banks The ultimate goal is to provide an alternative source of low cost loans to the farmers while maintaining a sound portfolio to protect the authority GDA provides support to the next generation of agriculturalists through the START Loan Program, David Skinner GDA Scholarships and our support of Agri Youth Programs

Where to get more information Visit our website at www. gdaonline. com l Call or visit one of our offices in Monroe, Cordele or Tifton l Call toll free 1 800 376 FARM l