P.O. Box 253, Hill City, SD 57745
(605) 574-2368
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Business Assistance Programs
Heart of the Hills Economic Development
Revolving Loan Fund
Revolving Loan Fund
This fund has low interest funding available specifically for Hill City businesses, for expansion, removation, relocation and job development. Though Black Hills Community Economic Development assistance is available to build business plans, financial forcasts and job creation projections.
REDI Fund
We give new meaning to the phrase "ready, willing and able." South Dakota's REDI (Revolving Economic Development and Initiative) Fund is designed to help promote job growth in South Dakota. This low-interest loan fund is available to start-up firms and businesses that are expanding or relocating.
This fund provides permanent financing for the purchase of land and associated site improvements, construction, acquisition, and renovations of building. It also can be used to help cover fees, services and other costs associated with construction. The REDI Fund works by providing up to $5,000.00 per job created, with the total loan no greater then 45 percent of the total project costs. Companies should secure matching funds and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI loan Fund.
Interest rates have remained at 3 percent since the program's inception, and loans are amortized up to 20 years on the building and 10 years on equipment, with a balloon payment due after only five years.
EDFA - Economic Development Finance Authority
Another financing option available in South Dakota is EDFA, the state's Economic Development Finance Authority. This loan program, designed for more capital intensive projects, provides small businesses access to the public bond market. The program can fund projects individually or pool them to help lower the cost of the bond issuance. One of the biggest advantages of this program is that borrowers are guaranteed a long-term fixed interest rate.
Another benefit for borrowers is South Dakota's "A" rating by Standard and Poors. By maintaining an "A" rating, South Dakota is able to offer a lower interest rate to the borrower.
This program is open to for-profit businesses. The bonds can be used for three main purposes: construction; storage, distribution or manufacturing of products; or the purchase of new machinery and equipment used in an industrial process. Our tax exempts bonds can fund project costs up to 10 million. We also offer taxable bonds that do not limit the project cost amount.
SBA 504
The SBA 504 loan program is an attractive and effective financing tool. It is available to for-profit businesses. This program offers long-term, fixed-rate financing, is available for fixed asset purchases only. That could include land, building, new construction, and equipment with a useful life of 10 or more years.
The SBA 504 recognizes the financial risk of start-up businesses and single purpose facilities and is willing to participate in these ventures, although they do require more equity.
Another benefit of this program is that the participating lender receives first mortgage to the project.
The Bottom Line
South Dakota's low cost of doing business and our aggressive financial programs can have a substantial effect on your bottom line. When combined with incentives from the community, region, and other sources, a South Dakota location just makes good bottom line sense.
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Chamber of Commerce Quick Links
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HILL CITY CHAMBER OF COMMERCE
324 Main Street, PO Box 253 Hill City, South Dakota 57745 |
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