The Capital Investment Fund now exceeds $10 million for the first time in South Dakota Rural Enterprise history - thanks to investors who have shown their confidence in the benefits of the fund. The Capital Investment Fund assists South Dakota community economic development efforts across the state, in communities of all sizes, from Eureka to Miller, Aberdeen to Pierre and in the Black Hills as well.

SD Rural Enterprise administers the Capital Investment Fund, which builds the financial capacity of South Dakota's Economic Development Corporations and Revolving Loan Funds by making capital available for projects in communities across the state. 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.

One of the places where Capital Investment Fund money has made a difference is in Madison, where a portion of the funds were used for infrastructure improvements to impact the existing Lakeview Industrial Park and allow for a new 80 acre expansion. The scope of the project consists of providing road access, water, sewer, and drainage improvements that impact the existing industrial acreage for new development, creating 20 building sites. The specific costs were estimated at $1.3 million for the project.

According to Dwaine Chapel, Executive Director of Lake Area Improvement Corporation, this infrastructure investment will provide a site for a local company, James River Equipment-John Deere, to build a new state-of-the-art facility. By keeping James River Equipment in Lake County, 22 jobs were saved and 15 direct positions will be added, along with three to four indirect positions in the community.

Lake Area Improvement Corporation also utilized the funds to complete the build out of the Heartland Technology Center, providing space for 40 new positions in Madison. The facility is used as a business development and information technology research center.

Through Fiscal Year 2008, Capital Investment Fund borrowers reported the creation and retention of 3,400 jobs in South Dakota. A significant advantage of the Capital Investment Fund to development organizations is that Fund dollars count as a local match when applying for State, Federal or other sources of funding. The loans can also be blended with other funds to achieve an effective interest rate.

The Capital Investment Fund has helped seven small rural communities in the Beadle and Spink Enterprise Community (BASEC) service area meet some of their housing needs. Projects include helping individual families purchase a home or make improvements to their existing homes. In 2009, approximately $600,000 was used to assist 16 homeowners, with a portion of the funding from the Capital Investment Fund.

"SD Rural Enterprise and the Capital Investment Fund have been extremely beneficial to get these housing projects done," said Lori Hintz, BASEC executive director. "The Capital Investment Fund is very flexible and allows BASEC to use the funds where they are needed. Because BASEC was short on 'housing money,' that is where we put the CIF funds to work."

"Because of funding sources like the Capital Investment Fund," said Jim Barringer, President of the Aberdeen Development Corporation, "communities are able to make solid investments in the future-investments that might not be possible without the assistance of SD Rural Enterprise and the Capital Investment Fund."

2009 WINTER REPORT
	Capital Investment Fund Reaches $10 Million
	Black Hills Town Hall Meetings Focus on Priorities
	Opportunity Roundtable Discussions on Line
	Dakotas America Provides Vital Funding for Regional Projects
	Micro-Enterprise Program to Benefit Small Business Statewide