A Big Boost for Rural Georgia

February 1, 2025

Ben Young,

Rural Georgia remains a focus for economic development. There is opportunity for many of our 159 counties to become more competitive with better infrastructure and broader residential development. In December 2024, the state announced $9.3 million for six counties, the first Rural Site Development Initiative grants. The funding is administered by the OneGeorgia Authority through the Department of Community Affairs (DCA) to accelerate development and local support for rural industrial sites.

The winning counties include Liberty County Development Authority ($2 million), Joint Development Authority of Peach County and city of Warner Robins ($2 million), Dodge County-Eastman Development Authority ($2 million), Brunswick and Glynn County Development Authority ($2 million), Screven County Development Authority ($1 million-plus) and Dade Industrial Development Authority ($31,500). Projects range from creating spec buildings to enhancing logistics sites and improving roads near industrial properties.

In November 2024, nine cities – Chickamauga, Covington, Dallas, Dawsonville, Douglas, Ellaville, Fort Oglethorpe, Sandersville and Warrenton – were designated as Rural Zones, a collaboration between the DCA and the Georgia Department of Economic Development. Rural Zone tax credits – targeted to job creation in historic downtown areas – last five years and include the Jobs Tax Credit, the Investment Credit and the Rehabilitation Credit. The Jobs Tax Credit is equivalent to $2,000 per year for each new full-time equivalent job for up to five years. The Investment Credit is equivalent to 25% of the purchase price of a property within the designated Rural Zone, and the tax credits may not exceed $125,000. The Rehabilitation Credit is equivalent to 30% of the qualified rehabilitation costs of a building located within a designated Rural Zone, and the tax credits may not exceed $150,000.

OneGeorgia Authority also offers Rural Workforce Housing Initiative construction loans of up to $1 million at 3% interest or less to develop homes in the range of $125,000 to $290,000. Funds are available to cover 40% of development costs and are awarded to sites that can have the homes ready within two years. The Rural Workforce Housing Initiative includes infrastructure grants up to $2.5 million and construction finance up to $1 million per application, targeting ongoing workforce housing in regions with low unemployment.

The U.S. Department of Agriculture offers Rural Economic Development Loan and Grant programs through local utility entities. These are zero-interest revolving loans for projects that create and retain local employment and are restricted to areas with fewer than 50,000 residents. Grants of up to $300,000 are available to establish a revolving loan fund with a maximum loan amount of $1 million. They can be used to establish business incubators, help nonprofits, fund facilities that provide education, training and healthcare or help with business expansion or technical assistance.

Illustration credit: Gordon Johnson

The USDA also offers a Rural Business Development Grant Program to stimulate rural economies. Business opportunity grants are available for strategic planning and feasibility studies, among other things, while business enterprise grants support small and emerging rural business projects such as land development, technical assistance, pollution control and revolving loan fund capitalization. Applications must be received by the end of this month.

The U.S. Department of Housing and Urban Development (HUD), which gives funding to communities through the Jobs Plus Initiative for local job development, has awarded $3 million to Valdosta. The initiative focuses on work readiness, employer connections, technology skills, financial literacy and other resources to help public housing residents “thrive and not just survive,” according to Georgia Field Office Director for HUD Shea Johnson. Valdosta’s grant will be used to integrate employment-related services into public housing communities.

In August 2024, Gov. Brian Kemp announced that of 26,900 new private sector jobs created in the last fiscal year, more than 18,300 were outside the 10-county Atlanta region. It is important for communities looking to grow to consider the workforce housing implications and opportunities for local real estate as well as to revisit zoning codes to accommodate new needs. The patchwork of local zonings and covenants across the state hamper the ability to address affordable housing needs – and for rural Georgia to fully benefit from these economic development opportunities.