PDA accepts OneGeorgia loan

The Americus-Sumter Payroll Development Authority (PDA) voted Monday to accept the GeorgiaOne Equity loan for $400,000. This loan is intended to benefit Southeast Railcar and Locomotive Services Inc., located in Sumter County.

The loan will be granted to the PDA, which will also be responsible for the repayment of the loan. The PDA will then issue the funds to Southeast Railcar provided the company meets three specific conditions.

The company must first obtain corporate guarantees that the loan will be re-paid. Heart of Georgia Railroad is the parent company that would provide this guarantee. The second requirement is that two major stockholders must issue personal guarantees. These guarantees would come from Brad LaFever, president of Heart of Georgia Railroad, and Dewayne Broxterman, operations manager. Lastly, the company would have to agree to waive state bidding laws, a move already approved by OneGeorgia.

As a whole, the PDA wants success for Southeast Railcar and plans to do all it can to stand behind the loan.

"We love to grow local companies. We're looking to create jobs," says David Garriga, executive director of the PDA.

Paul Hall, PDA chairman, said, This is a good project for us. It's creating jobs, maybe 50. It's good for the community and growth."

The PDA originally applied for the $400,000 as a grant, but it became a 20-year loan with a three percent fixed interest rate. OneGeorgia gave the PDA 30 days to make its decision, with the deadline being Dec. 31.

The next PDA meeting is Jan. 6, 2009 at Rees Park Economic Development Center. The PDA meetings are open to the public.