DCA outlines lending supports under State Small Business Credit Initiative

Haywood summarized the state's use of the State Small Business Credit Initiative (SSBCI) funds and how the programs operate now that federal oversight has ended. He said Georgia originally received about $50 million under SSBCI and later continued two programs: a loan guarantee program that guarantees up to 50% of a loan (up to $400,000) and a loan participation program where DCA will take a subordinate position up to 25% (up to $250,000). "We've loaned out or guaranteed somewhere north of $60,000,000 as funds have come back in and recycled through," Haywood said.

Committee members pressed on safeguards, default rates and whether farmers and legislators can participate; Haywood said the bank performs initial underwriting, DCA’s credit team reviews applications, defaults have remained low (single‑digit), and the programs have seen broad lender participation across rural areas. He said several million dollars remain available and the rate of turnover depends on loan terms and repayment timing.