Providing companies with increased access to capital is one of Governor Rounds’ primary objectives. He was instrumental in creating the South Dakota Capital Investment Entity Loan program, which allows borrowing entities to invest in South Dakota companies.
When matching state dollars on a four to one basis, a borrower may increase their investment in a South Dakota company by 25 percent. The purpose of the program is two-fold. First, it allows borrowers to increase their investment in South Dakota companies. Second, they can invest in more companies.
By working with a loan officer at the South Dakota Department of Tourism and State Development, qualifying applicants will be able to secure a loan whose proceeds can be used to invest in other worthy South Dakota businesses.
The interest rate on the Capital Investment Entity Program is the New York Prime Rate as published in the “Money Rates” section of the Wall Street Journal at the time of disbursement of loan proceeds plus five percent, adjustable daily. There is a four to one matching requirement.
Since your time is valuable for sovepiller håndkøb, we’ve made the application process as simple as possible. Here’s a quick look at what needs to be done to apply for a loan through the South Dakota Capital Investment Entity Loan Program.
Assemble all preliminary information on your project prior to contacting the Department of Tourism and State Development.
Submit a complete application. Include any additional documents necessary to explain your intentions.
Wait for approval. All complete applications will be presented to the Board of Economic Development at the next special or regularly scheduled meeting, which is normally within 30 days of receipt of your application.
How it Works
The maximum loan amount is $1,000,000. The borrower may invest 100% of the total loan proceeds in any one investment or make multiple investments.
The borrower shall match the REDI Fund loan with funds from other sources on the basis of four dollars of funds from other sources to one dollar of REDI fund loan proceeds for each investment.
The maturity date for these REDI Fund loans may not exceed seven years from the date of loan closing. The borrower is responsible for other financing when the loan comes due.
There is a one percent origination fee.
Loan proceeds may not be used for: illegal activity, speculation purposes only, investment in sexually-oriented businesses or facilities, investment in a business or project owned and operated in whole by the borrower or a principal of the borrower, or investment in any business or facility that earns more than one-third of its annual gross income from gaming activities.
The total loan amount must be disbursed no later than one year after the loan is closed.
The interest rate and the manner or means of determining changes to the interest rate shall be posted on the department’s website.
You have two options that you may choose from on how you want to receive a finance application for the GOED’s programs.
The first option is to download the Microsoft Word document below and print it.
The second option is to view and print the application as a PDF file using Adobe Acrobat Reader 5.0. Please note that while you may type your information onto this application and then print it, once you leave this site the information will not be saved. If you do not currently have the Adobe Acrobat Reader 5.0 plug-in installed on your system, click on the Get Acrobat icon to download the program free from Adobe.