The South Dakota Rural Enterprise Capital Investment Fund, which now totals over $12.65 million, builds the financial capacity of South Dakota's Economic Development Corporations and Revolving Loan Funds by making funding available to them for projects in South Dakota communities. But equally important to those organizations is the technical assistance, provided by SD Rural Enterprise Credit Officer Dick Werner, that improves their effectiveness and ability to manage risk.

Capital Investment Fund dollars are flexible, with neither job creation requirements nor limits or restrictions on the kinds of projects or businesses that can be financed using the Fund. In addition, funding from the Capital Investment Fund counts as local matching funds when applying for State, Federal or other sources of funding, and Capital Investment Fund dollars can be blended with other funds to achieve an effective interest rate.

Webster Area Development Corporation Secretary Todd Garry said that the application process for the Capital Investment Fund was quite simple, with no voluminous amounts of paperwork or follow up needed.

"One of the best parts of the Capital Investment Fund is that it is considered unsecured debt," Garry said, "allowing Webster Area Development Corporation to borrow more funds for the project that we would not have otherwise been able to complete without tying up a large portion of our equity in our development corporation."

Bruce Brekke, board member for the Mobridge Economic Development Corporation, said that SD Rural Enterprise made it easy to create the community's revolving loan fund.

"The Capital Investment Fund allowed us access to low interest money that we could loan back to businesses looking to expand or to start up in Mobridge," Brekke said. "It came at a good time as we were starting a new approach of gardening, or trying to help existing businesses to ensure their long-term existence and prosperity."

But the ease in the application and the terms and flexible nature of the capital is only one of the benefits of engaging SD Rural Enterprise in a conversation regarding economic development finance goals of your development organization. Werner is available to work with staff and boards of directors on capital structure, policies and procedures and risk management even if you are not making an application for a Capital Investment Fund loan.

Sturgis Economic Development Corporation President Pat Kurtenbach cited Credit Officer Dick Werner's involvement as a vital element in improving their operations.

"Dick initially reached out to SEDC in 2008, meeting with the SEDC Board to discuss the value of Capital Investment Fund for economic development," Kurtenbach said. "After his comprehensive review of our files, policies and procedures, he made several sound recommendations that have significantly strengthened our structural capacity. Dick's regular checkups, along with required annual reporting, are welcomed as opportunities to continually enhance our organization."

Wanda Jundt, Executive Director of the Eureka Community Development Company, agrees with Kurtenbach that Werner brings more than dollars to local economic development.

"Dick makes suggestions beyond the money in that fund," Jundt said. "He is familiar with this region of the state, so he understands situations as they arise. He takes the time to visit businesses that he has not seen before and gets to know the board members and business owners."

Werner's work with development corporations exemplifies one of SD Rural Enterprise's values.

"One of the philosophies that I learned from South Dakota Rural Enterprise is We always start with YES," Jundt said. "With YES as our starting point, we do what we can to make things happen."

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