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Economic Development Success Stories

Economic Development Success Stories. EIP GRANT PUBLIC INFRASTRUCTURE. Upson County – Innoware Plastics, Inc. Recipient – Upson County Sub-Recipient – Innoware Plastics, Inc. Grant Amount - $375,000 Project – rail spur Private Investment - $7.1 Million Jobs – 30 jobs.

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Economic Development Success Stories

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  1. Economic Development Success Stories

  2. EIP GRANT PUBLIC INFRASTRUCTURE

  3. Upson County – Innoware Plastics, Inc. • Recipient – Upson County • Sub-Recipient – Innoware Plastics, Inc. • Grant Amount - $375,000 • Project – rail spur • Private Investment - $7.1 Million • Jobs – 30 jobs

  4. Source and Use – Upson County

  5. Upson County

  6. EIP GRANT – LOAN TO PRIVATE FOR-PROFIT BUSINESS

  7. City of Harlem – Lucky Lady Pecans, Gifts & More, Inc. • Recipient – City of Harlem • Sub-Recipient – Lucky Lady Pecans, Gifts and More, Inc. • Grant Amount - $157,058 • Project – Machinery & Equipment • Private Investment - $253,504 • Jobs – 20

  8. Source and Use – City of Harlem

  9. “Making it work” Underwriting public financing requires: • Flexibility • Keeping an eye open for potential • Remembering the public purpose • Looking at the “whole” project Not a rigorous quantitative scoring method!

  10. Sales Trends Profitability Management Cash Flow Trends Working Capital Adequacy Capitalization Industry Conditions Years in Business Business Plan D&B Rating Equity Injection into project Bank Participation in project Cash reserves/lines of credit Personal credit of principals CREDIT INDICATORS:

  11. Business Plan: Description of Business • Form, type, product/service Marketing Plan • Customers, market analysis and trends, competition Management Plan • Background, experience of principals, personnel needs, employee benefits Financial Plan • Budget, working capital adequacy, break-even analysis, historical and projected financial statements

  12. So where do you draw the line? SOLVENCY GREY AREA Solid Credit PROFITABILITY High Risk GREY AREA

  13. Positive Attributes of a Successful Project Strong Management  Access to Capital  Marketplace Opportunities  Targeted Industry  Strong Commitment by Local Leadership

  14. REDEVELOPMENT FUND

  15. City of Donalsonville • Recipient – City of Donalsonville • Grant Amount - $150,918 • Project – Demolition and Clearance of the vacant dilapidated building in historic downtown. • Private Investment - $23,000 • City - $113,281

  16. Source and Use – City of Donalsonville

  17. City of Donalsonville

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