Financing

South Dakota and the cities of the Lake Francis Case Development program have what you need to make your project a reality. Professional loan officers, financial packagers and development specialists are at your disposal to move your company from blueprints and business plans to bricks and mortar. We know that available financing is critical for your company to grow and prosper. That's why our business finance programs are designed with you in mind. Check out our programs, from revolving loan funds to workforce development grants. We're sure we have one that's right for you.

REDI Fund

At A Glance

• 3% Interest
• Amortized over useful life of assets
• 5-year balloon payment

Purpose:
We give new meaning to the phrase "ready, willing and able." Our REDI (Revolving Economic Development and Initiative) Fund is designed to help promote job growth in South Dakota. This low interest loan fund is available to start-up firms, businesses that are expanding or relocating and local economic development corporations.

SBA 504

At A Glance

• Long-term, fixed rate financing
• Available to for-profit businesses
• Subordinated to first mortgage lender

Purpose:
The SBA 504 loan program offers subordinated, fixed rate financing to healthy and expanding small businesses. Long-tem, fixed rate financing (10-20 years) and reasonable rates (near long-term U.S. Treasury bond rates), make the 504 Program an attractive and effective economic development financing tool.

APEX Fund

At A Glance

• Maximum loan amount of $237,500
• 5-7% Interest
• Ag processing or rural communities·
• May provide up to 75% of project cost

Purpose:
The APEX (Agricultural Processing and Export) Loan Program is designed to assist companies in communities with a population of 25,000 or less, or which add value to raw agricultural products through processing. The program is open to for-profit businesses and local economic development corporations.

MicroLOAN

At A Glance

• Small Business Loans
• Maximum of $50,000
• % Interest

Purpose:
The MicroLOAN South Dakota Loan Program is a partnership with the Board of Economic Development, South Dakota Development Corporation, and Governor's Office of Economic Development. These loans are made available to small businesses within the borders of South Dakota and South Dakota residents, including main street and retail operations, for working capital, equipment, real estate or other fixed asset project costs.

Bond Financing

At A Glance

• Long-term, fixed rate financing
• Tax Exempt
• "A" rating by Standard & Poor's
• EDFA can act as the conduit for Stand Alone Bond Issuances

Purpose:
Another financing option is the pooled loan program through South Dakota's Economic Development Finance Authority. This loan program, designed for more capital intensive projects, provides small businesses access to larger capital markets for tax-exempt or taxable bond issuances. The program can fund projects individually or pool them to help lower the cost of the bond issuance. One of the biggest advantages of this program is a long-term loan with a fixed interest rate.

Individuals may also apply for Stand-Alone Bond Issuances when there is a need for an authorized issuing agency. The application below needs to be completed for these requests as well. A major benefit to borrowers is the South Dakota Economic Development Finance Authority's "A" rating by Standard and Poor's. By maintaining an "A" rating, the Authority is able to offer a lower interest rate to the applicant.

Value-Added Agriculture Subfund

Purpose:
In 1999, a $3 million fund was created specifically to assist in funding feasibility and marketing studies for prospective value-added ag business. This Subfund of the REDI Fund is just one step toward improving value-added ag in South Dakota.

By partnering with the Department of Agriculture, local communities, commodity organizations and others, the Governor's Office of Economic Development will work with you to take your project from conception to completion. Our goal is threefold:

• To find niche markets that will add value to South Dakota ag commodities
• To help fund marketing and feasibility studies, and
• To help assemble the right people, capital and labor to ensure a successful project.

Tourism Enhancement Program

Purpose:
Tourism is vital to South Dakota's economy. That's why helping tourism related businesses grow is a priority of Governor Mike Rounds; and his Department of Tourism and State Development.

The newly created $3 million Value-Added Tourism Subfund is earmarked specifically for feasibility studies and marketing of value added tourism projects. This subfund of the REDI Fund is another big step toward growing tourism in South Dakota.

Using funds from the Value-Added Tourism Subfund, the Governor hopes to: attract more visitors to South Dakota from other states and countries; lengthen the stay of visitors to South Dakota; expand the visitor season to the shoulder seasons; create primary jobs in the visitor industry and expand upon the historical, cultural, scenic, wildlife and other resources in South Dakota.

STEP 1: Assemble preliminary information on project prior to contacting the Department of Tourism and State Development.

STEP 2: Submit a complete application. Include any additional documents necessary to explain your project.

STEP 3: Wait for approval. All complete applications will be presented to the Board of Economic Development at the nest special or regularly scheduled meeting.
Training grants are available.

AEL Program Application

The South Dakota Department of Labor funds local programs to operate Adult Education and Literacy (AEL) programs. Within the Adult Education and Literacy Program under the authority of the Workforce Investment Act of 1998, there is a three-year grant cycle, for which the South Dakota Department of Labor solicits proposals to operate programs in:

• Academic Skills in Adult Basic Education.
• Adult Secondary Education.
• English as a Second Language.
• Literacy.

*Source GOED