INCENTIVES
South Dakota REDI Fund
Purpose
At-A-Glance
- 3% Interest
- Amortized over useful life of asset
- 5 year balloon payment |
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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.
How it Works
The REDI Fund provides up to 45 percent of a project's total cost. Companies
should secure matching funds and be able to provide a 10 percent minimum
equity contribution before applying to the Board of Economic Development
for a REDI Fund loan.
This fund provides financing for the purchase of land and associated
site improvements, construction, acquisition, and renovations of buildings.
It also can be used to help cover fees, services and other costs associated
with construction.
Find out more at the South Dakota GOED web site - click
here.
SBA 504
Purpose
At-A-Glance
- Long-term fixed rate financing
- Available to for-profit businesses
-Subordinated to first mortgage lenders |
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The SBA 504 loan program is another attractive financing tool. This
program offers subordinated, fixed rate financing to healthy and expanding
small businesses.
How it Works
This program offers long-term, fixed-rate financing and is available
for fixed asset purchases including land, buildings, new construction
and equipment with a useful life of 10 years or more.
The SBA 504 recognizes the financial risk of start-up businesses and
single purpose facilities and is willing to participate in these ventures,
however an equity injection of ten to twenty percent may be required
over and above the initial ten percent equity injection requirement.
Another benefit of this program is that the participating lender receives
first mortgage on the project.
Find out more at the South Dakota GOED web site - click
here.
At-A-Glance
- Small Business Loans
- Maximum of $50,000
- 3% Interest |
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MicroLOAN
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.
Find out more at the South Dakota GOED web site - click
here.
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