Regional Financing and Incentives

Regional Financing and Incentives
South Central Revolving Loan Fund

• Gap financing based on the number of jobs created or retained ranges from $2,500 to $130,000, limited to one-third of the total project investment. 
• Interest rates are typically below market rates.

Intermediary Relending Program (IRP)

• Direct and indirect loans are available to any business and can fund up to 100% of project costs contingent upon availability of funds. Through IRP, USDA provides loans to private non-profit organizations, public entities and other intermediaries to finance business facilities and community development projects in rural communities with a population of fewer than 25,000 people. South Central Dakota Regional Council (SCDRC) is authorized as the intermediary in the lending process. 
• Fixed-rate loans cover up to 75 percent of eligible project costs, with a maximum of $150,000. The applicant is required to supply at least 10 percent equity.
• Eligible uses include real estate, fixed assets, working capital and/or inventory. Repayment terms are based on the use of the loan proceeds or the life of the assets being financed. Generally, the term is 7 years or less.

Community Development Loan Fund

• Loan amounts are based on the number of jobs created or retained. 
• Favorable terms include lower interest rates, limited principal deferment and subordinated debt. 
• Loan funds can be utilized for 50% of the total project investment.