One of the most effective tools in the South Dakota Rural Enterprise toolbox is the Capital Investment Fund (CIF). The fund exists to build the financial capacity of South Dakota’s economic development corporations and revolving loan funds that finance local development projects.

CIF loans have a $50,000 minimum at a ten-year rate with a five-year rate review. The first five years offer an interest rate of 4.75% with modest fees and no prepayment penalty for early principal payment. The loans are made as unsecured credit: renewable, flexible loans with no restrictions on the kinds of business financed. These loans can be used as matching funds to leverage the loan power of an organization. Plus, the approval process is streamlined and timely.

As you can imagine, CIF loans are as popular as they are effective. South Dakota Rural Enterprise is currently soliciting an additional $1.5 to $2 million in investment from financial institutions and other investors to provide for additional demand. When currently approved loans are confirmed, CIF will be over-deployed by over a quarter million dollars.

One of the most attractive elements of CIF is that the fund is working. Our recent statewide survey revealed that organizations borrowing CIF dollars turned around and financed 204 businesses, creating or retaining a total of 3,286 permanent jobs in our state. Equally important, the total delinquency rate on loans to businesses made by CIF borrowers, which average $53,607 in size, was just 3.68%. We are also happy to report that 100% of CIF borrowers carry loan loss reserves in 2007, a direct result of SD Rural Enterprise’s involvement and guidance.

Another interesting statistic our survey reported was the 84.9% deployment rate for CIF borrowers. In other words, CIF loans get out there and go to work, building communities and enhancing the economy of South Dakota. Opportunities still exist to participate in the CIF program. Click here to learn more about CIF, or give us a call at 605-978-2804.

2007 SUMMER REPORT
	Market research shows progress, promise & potential
	"Enterprise" fuels the spirit of SD business
	Author presents workshop to Rural Enterprise board
	Microenterprise program begins to take shape
	Capital Investment Fund is working for SD
	Meadowlark Retreat
	Helping communities & organizations to GROW
	Program creates value-added communities