The Georgia Equity Direct Program

The Georgia Department of Community Affairs (DCA) has allocated $20 million of its SSBCI allocation for the Georgia Equity Direct Program. Funds will be transferred from DCA to Invest Georgia when committed, pledged, or otherwise promised, in writing, as part of an equity investment transaction. Direct investments through the Georgia Equity Direct Program are intended to incentivize (“cause”) additional investment into promising young Georgia-based companies.

Invest Georgia and DCA will place a special emphasis on identifying investment opportunities in business enterprises owned and controlled by socially and economically disadvantaged individuals (SEDI-owned businesses).

SSBCI programs target an average borrower size of 500 employees or less, but the business may not exceed 750 employees.

OPERATING MECHANICS OF THE GEORGIA EQUITY DIRECT PROGRAM

• Invest Georgia is a contracted entity with the Georgia Department of Community Affairs and will operate the Georgia Equity Direct Program.
• The Georgia Equity Direct Program is a direct co-investment program.
• SSBCI funds will flow from DCA/GHFA Economic Development Financing, Inc. to Invest Georgia to a limited liability company (LLC) created by Invest Georgia. The LLC will act as the equity owner in eligible businesses.
• Invest Georgia will oversee due diligence on co-investment opportunities into high-potential Georgia-based businesses.
• A minimum 1:1 capital match from co-investors must be made at the business level with the initial SSBCI investment. SSBCI funds must be the “cause and result” of the private investment into the business, which must be documented.
• The minimum investment amount will be $250,000 with a maximum investment amount of $1 million alongside angel investors, non-profit seed funds, emerging funds, SEDI or rural funds and other investors.
• A single financing from other investors cannot exceed $20 million. The $20 million restriction applies to a single investment round that includes an SSBCI-funded investment and all classes of equity investments that close on or about the same date.
• SSBCI equity investments may be used for most business purposes unless prohibited under U.S. Treasury Guidelines. The stage of an equity investment will generally be Pre-Seed, Seed, or Early Stage.
• SSBCI equity investments must comply with the venture capital program conflict of interest standards as set forth in U.S. Treasury Guidelines. Funds from the SSBCI program cannot be used to make an investment in a business in which an SSBCI insider, or a family member or business partner of an SSBCI insider has a personal financial interest.
• The business receiving an SSBCI investment must agree to compliance and reporting requirements. Capital raised by the business post-SSBCI investment will be tracked for private leverage. Jobs created will be tracked for SSBCI reporting purposes.
• The business receiving an SSBCI investment must agree to compliance with the Civil Rights Requirements of the U.S. Treasury Guidelines including Title VI of the Civil Rights Act of 1964.