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The South Dakota Rural Enterprise Capital Investment Fund (CIF) builds financial capacity of South Dakota's Economic Development Corporations and Revolving Loan Funds who finance local development projects.
Capital Investment Fund loans
- Term is 10 years.
- Rate is currently 3.90%, variable adjusting annually at the discretion of SD Rural Enterprise until final maturity of the note. The maximum rate will not exceed 5%.
- Repayment is interest only payments due quarterly. Principal due at maturity.
- Loan Fee is 1% of the principal amount due at origination or upon renewal.
- Application Fee is $1,000 non-refundable.
- No Prepayment Penalty for early principal payment.
- Unsecured credit with no collateral requirement.
- May be renewed at maturity, subject to prevailing rates and fee's at time of renewal.
- Flexible - with neither job creation requirements nor limits or restrictions on the kinds of projects or businesses financed.
- Can be used as local matching funds when applying for State, Federal or other sources of funding.
- Blend with other funds to achieve an attractive effective interest rate.
- $50,000 minimum loan
- Loan maximum depends on the size of the Economic Development Corporation or Revolving Loan Fund's current capital pool and the experience of the organization.
- Approval process is streamlined and timely. (See application)
- Approvals are granted for one year subject to no material changes.
Potential uses of funds
- Micro Loans
- Business Loans
- Community Loans
- Leasehold Property Development
- Industrial Park Development
- Other Financial Products
Qualifying for Fund loans
In order to qualify, Economic Development Corporations and Revolving Loan Funds, including start-ups, must demonstrate capacity to use capital productively by evidence of:
- A mission consistent with South Dakota Rural Enterprise's mission
- Sound management and governance
- Adequate capital source
- A need for loan captial
We underwrite the organization - not the projects that will be funded.
Click here for a printable Capital Investment Fund loan application. For additional information or to request an application, contact South Dakota Rural Enterprise at 605-978-2804 of email us at .
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