Georgia Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP | November 2025

Georgia is a growing private money lending market, particularly in the Atlanta metropolitan area. Atlanta's strong rental market, population growth, and active fix-and-flip activity make it attractive for private lenders. Georgia's fast non-judicial foreclosure process and lack of redemption period make it one of the most lender-friendly states for enforcement.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Georgia.

Georgia at a Glance

Security Instrument: Security Deed (functionally similar to Deed of Trust)

Foreclosure Type: Non-Judicial

Typical Foreclosure Timeline: approximately 37 days minimum from advertisement to sale

Usury: Georgia's usury limit is 5% per month (60% per year) for loans of $3,000 or less. For larger loans, the interest rate is generally governed by contract with limited restrictions for business-purpose transactions. Criminal usury applies when the rate exceeds 5% per month. Georgia's Industrial Loan Act provides additional rate provisions for licensed lenders.

Licensing Requirements

Georgia requires a Mortgage Lender license for companies making consumer mortgage loans. Private money lenders making business-purpose loans are generally not required to hold a state lending license, though they should confirm the business-purpose classification is properly documented.

Key Compliance Considerations

Georgia uses a 'security deed' rather than a traditional deed of trust or mortgage. A security deed conveys title to the lender as security for the debt, with the borrower retaining possession. Functionally, it operates similarly to a deed of trust and allows non-judicial foreclosure.

Georgia has one of the fastest non-judicial foreclosure processes in the country. The lender must publish a notice of sale in the county newspaper for four consecutive weeks, with the sale held on the first Tuesday of the month. The entire process can be completed in approximately 37 days.

Georgia does not provide a statutory right of redemption after foreclosure sale. Once the foreclosure is complete, the borrower has no right to redeem the property. This is a significant advantage for private money lenders.

Deficiency judgments are available in Georgia, but the lender must report the fair market value of the property and the court may confirm the sale amount.

Document Requirements for Georgia Private Money Loans

Georgia private money loans require a security deed (functionally similar to deed of trust) as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Georgia-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Georgia lending transactions.

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