South Dakota Rural Enterprise Capital Investment Fund
(CIF) builds financial capacity of South Dakota's Economic Development Corporations and Revolving Loan Funds
who finance local development projects.
Capital Investment Fund loans
- Term is 10 years with a 5 year rate review.
- Rate is 4.75% for the first 5 years with a maximum rate of 5% at the 5 year rate review for the remaining term.
- Repayment is interest only payments due quarterly. Principal due at maturity.
- Loan Fee is 1% of the principal amount due at origination or upon renewal.
- Application Fee is $500. If loan is approved, the application fee will be applied to the 1% Loan Fee.
- No Prepayment Penalty for early principal payment.
- Unsecured credit with no collateral requirement.
- May be renewed at maturity, subject to prevailing rates and fees at time of renewal.
- Flexible - with neither job creation requirements nor limits or restrictions on the kinds of projects or businesses financed.
- Can be used as local matching funds when applying for State, Federal or other sources of funding
- Blend with other funds to achieve an attractive effective interest rate.
- $50,000 minimum loan
- Loan maximum depends on the size of the Economic Development Corporation or Revolving Loan Fund's current capital pool and the experience of the organization.
- Approval process is streamlined and timely. (See application)
Potential uses of funds
- Micro Loans
- Business Loans
- Community Loans
- Leasehold Property Development
- Industrial Park Development
- Other Financial Products
Qualifying for Fund loans
In order to qualify, Economic Development Corporations and Revolving Loan Funds, including start-ups, must demonstrate capacity to use capital productively by evidence of:
underwrite the organization - not the projects that will be funded.
- A mission consistent with South Dakota Rural Enterprise's mission
- Sound management and governance
- Adequate capital source
- A need for loan captial
Click here for a printable Capital Investment Fund loan application. For additional information or to request an application, contact South
Dakota Rural Enterprise at 605-978-2804 of email us at