CREDIT OFFICER'S REPORT by Dick Werner

The year 2006 was certainly a year of change for me at South Dakota Rural Enterprise. I first went from being a Board Member and Executive Officer to Interim Credit Officer and then taking on the role of permanent Credit Officer—all in a matter of months.

These changes proved to be very positive for me. I have long believed strongly in the mission of South Dakota Rural Enterprise. The experience of being the organization’s Credit Officer has enforced the mindset that the mission of South Dakota Rural Enterprise is necessary and vital to the future of our state.

South Dakota Rural Enterprise ended 2006 with excellent growth in the usage of our variety of credit products and services during the year. Here are just a few of the numbers that I think illustrate our growth:

• Net loan growth to Community Development Financial Institutions (CDFIs) was up 38% over fiscal year end 2005.
• The number of CDFIs that South Dakota Rural Enterprise directly assisted was up 33%.
• Deployment of South Dakota Rural Enterprise funds was at 98% at fiscal year end 2006. Note: Deployment includes 80% directly disbursed, 9% committed and 10% approved for a total of 98%. Committed funds are funds that CDFIs have paid a nominal fee to South Dakota Rural Enterprise to hold the funds for future usage. Approved funds are CDFIs that have a South Dakota Rural Enterprise approval outstanding without guarantee of funding.
• Approved loan volume of South Dakota Community Capital Fund (SDCCF) was up 82% over fiscal 2005.