Thanks to an infusion of capital by the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund and the Communities at Work Fund™ , a new Fund initially capitalized by Citi and managed by OFN and the Calvert Foundation, the South Dakota Rural Enterprise Capital Investment Fund has reached $12 million. The fund helps provide capital to community development groups and revolving loan funds throughout South Dakota.

The Treasury Department's Community Development Financial Institutions Fund awarded South Dakota Rural Enterprise a $750,000 federal grant to add permanent capital to the Capital Investment Fund. South Dakota Rural Enterprise has received grants from this funding source in the last four years totaling $2,090,422. The Communities at Work Fund approved financing for $60 million to help fuel small business lending, from which South Dakota Rural Enterprise was awarded $400,000 for use in the Capital Investment Fund. Citi Foundation also awarded the fund a capital grant of $50,000.

The South Dakota Rural Enterprise Capital Investment Fund, now at $12 million, builds the financial capacity of South Dakota's Economic Development Corporations and Revolving Loan Funds by making flexible funding available. There are neither job creation requirements nor limits or restrictions on the kinds of projects or businesses that can be financed using the Capital Investment 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.

These funds are extremely flexible. Development organizations have used these funds for purposes of direct loans to borrowers, to provide gap financing to make a project happen, for improvements in an industrial park, to construct buildings or purchase equipment for lease back to a project, among other uses. The bottom line is that these resources assist many development organizations across the state to make good projects happen that have positive impacts.

Currently, Capital Investment Fund lenders include eleven different development organizations, ranging from large regional Revolving Loan Funds to local development corporations that require flexible, reasonably-priced capital. Outstanding loans total $10 million, with another $5.8 million in approved loans and pending applications that could take the Fund to well over the $15 million level if funding were available.

Started in 2000, the Capital Investment Fund grew to $7 million by 2007, on its way to today's $12 million total. The Capital Investment Fund is just one of the ways that we continue to grow our economy, even in uncertain times. For more information on the Capital Investment Fund, contact SD Rural Enterprise at 605-978-2804, by e-mail at info@sdrei.org, or on the web at www.sdrei.org-or contact me directly at dick@sdrei.org or by phone at 605-350-1371.

2010 WINTER REPORT
	New Markets Tax Credits impact Dakota towns
	Don't look back-set goals for tomorrow
	VanHofwegen named managing director for Dakotas America
	Focusing on our purpose makes us more effective
	Capital Investment Fund reaches $12 million
	Entrepreneurs exchange ideas at Mobridge meeting