Areas Served: Statewide South Dakota
The 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 interim (construction) financing, matching funds for permanent financing and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.
Costs eligible for participation may include: – the purchase of land and the associated site improvements – construction, acquisition or renovation of buildings – the purchase and installation of machinery and equipment.
Costs that are NOT eligible include: – refinancing of existing debt – short-term, interim financing for the construction or acquisition phase of a project – trade receivables – inventory – other working capital needs – preliminary design stage costs which include, but are not limited to market research, written cost estimates, development of business plan – preliminary product development costs Terms Interest rates have remained at 3 percent since the program’s inception, and loans are amortized up to 20 years on land and buildings, and 10 years on equipment, with a balloon payment due after five years.
Contact Information
Governor’s Office of Economic Development
Address: 711 E. Wells Avenue
City: Pierre
State: South Dakota
Website:
https://sdgoed.com/
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