• Nov 10, 21
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

Business and economic development is the sustaining and enhancing of the economic climate of the region through the creation and retention of job opportunities.

First District is a resource for business and economic development planning and financing programs for the South Dakota Counties of Brookings, Clark, Codington, Deuel, Grant, Hamlin, Kingsbury, Lake, Miner, Moody, and Roberts.

Revolving Loan Fund (RLF) The Revolving Loan Fund (RLF) was established in 1986 through a $500,000 grant from the Economic Development Administration (EDA) and $166,000 in local and state matching funds.

A second RLF was established in 1997 through a $400,000 disaster grant from EDA.

First District’s RLF provides loans to businesses with projects that will either create or save jobs.

Through 2002, both RLFs have provided total loans in excess of $2.5 million and resulted in the creation of over 500 jobs.

Maximum Amount Loaned – 30-40% of project costs, depending on availability of funds Use of Proceeds Generally fixed assets, in some cases inventory or working capital Typical Package – 10% Borrower, 30% RLF/First District, 60% Bank Interest Rate Generally 5-7% Term Generally 10 years or less with flexible amortization Down Payment Minimum 10% cash equity Collateral Generally shared first position with bank Economic Development Criteria 1 FTE /$20,000 RLF dollars loaned Intermediary Relending Program (IRP) The IRP was established in 1992 with a $1 million loan from USDA Rural Development and $50,000 of matching funds.

A second IRP was established in 2002 with a $750,000 loan from USDA Rural Development and a $200,000 loan from South Dakota Rural Enterprise, Inc. Through 2002, FDDC has loaned in excess of $1.6 million in IRP financing resulting in the creation of over 220 jobs.

Maximum Amount Loaned – $187,500 or up to 75% of project costs Use of Proceeds – Generally fixed assets, in some cases inventory or working capital Typical Package – 10% Borrower, 30-45% IRP/FDDC, 45-60% Bank Interest Rate – 5-7%, subject to FDDC board approval Term – Generally 10 years or less with flexible amortization Down Payment – Minimum 10% cash equity Collateral – Generally shared first position with bank Economic Development Criteria – 1 FTE /$35,000 IRP dollars loaned.

 



Contact Information
First District Association of Local Governments
Address: 124 1st Avenue NW
City: Watertown
State: South Dakota

Website: http://www.1stdistrict.org

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