Revolving Loan Fund (RLF)
The Revolving Loan Fund (RLF) was established in 1986 through a $500,000 grant from the Economic Development Administration (EDA) and $166,000 in local and state matching funds. A second RLF was established in 1997 through a $400,000 disaster grant from EDA. First District's RLF provides loans to businesses with projects that will either create or save jobs. Through 2002, both RLFs have provided total loans in excess of $2.5 million and resulted in the creation of over 500 jobs.

Maximum Amount Loaned	30-40% of project costs, depending on availability of funds
Use of Proceeds	Generally fixed assets, in some cases inventory or working capital
Typical Package	10% Borrower, 30% RLF/First District, 60% Bank
Interest Rate	Generally 5-7%
Term	Generally 10 years or less with flexible amortization
Down Payment	Minimum 10% cash equity
Collateral	Generally shared first position with bank
Economic Development Criteria	1 FTE /$20,000 RLF dollars loaned
Service Area	Businesses located in one of the First District's eleven member counties

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First District Development Company (FDDC)
In 1983, the First District Development Company (FDDC) was established as a non-profit corporation and a Small Business Administration (SBA) Certified Development Company. The FDDC encourages economic growth and business development through several other loan programs.
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Click here for more information on the FDDC and its programs.

SBA 504 Loan Program
The SBA 504 loan program is funded through the sale of debentures (or bonds), sold monthly to investors and guaranteed by the Small Business Administration. FDDC has loaned over $23 million in SBA 504 financing resulting in the creation of over 1500 jobs.

Maximum Amount Loaned	$1,500,000 or $2,000,000 in rural areas or $4,000,000 if small manufacturer
Use of Proceeds	Fixed asset purchases
Typical Package	10% Borrower, 40% SBA 504/FDDC, 50% Bank
Interest Rate	Set at the time bonds are sold to investors
Term	10 years on equipment, 20 years on real estate
Down Payment	Minimum 10-20% equity, depending on age and type of business
Collateral	Bank has 1st lien position, FDDC/SBA 504 has 2nd lien position
Economic Development Criteria	1 FTE /$50,000 SBA 504 dollars loaned or 1 FTE / $100,000 if small manufacturer or meet other economic development goals
Service Area	Businesses located anywhere in South Dakota

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Intermediary Relending Program (IRP)
The IRP was established in 1992 with a $1 million loan from USDA Rural Development and $50,000 of matching funds. A second IRP was established in 2002 with a $750,000 loan from USDA Rural Development and a $200,000 loan from South Dakota Rural Enterprise, Inc. Through 2002, FDDC has loaned in excess of $1.6 million in IRP financing resulting in the creation of over 220 jobs.

Maximum Amount Loaned	$187,500 or up to 75% of project costs/td>
Use of Proceeds	Generally fixed assets, in some cases inventory or working capital
Typical Package	10% Borrower, 30-45% IRP/FDDC, 45-60% Bank
Interest Rate	5-7%, subject to FDDC board approval
Term	Generally 10 years or less with flexible amortization
Down Payment	Minimum 10% cash equity
Collateral	Generally shared first position with bank
Economic Development Criteria	1 FTE /$35,000 IRP dollars loaned
Service Area	Businesses located in one of the First District's eleven member counties

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Deuel, Hamlin, and Kingsbury Revolving Loan Funds
These revolving loan funds were established in the mid 1990's by Community Development Block Grants, which were loaned to a business in each of the respective counties. As these loans were paid back, each county established a revolving loan fund, which the FDDC now manages. The original loan amounts were $60,000 in Deuel County, $250,000 in Hamlin County, and $100,000 in Kingsbury County. The criteria and terms for these loan funds are very similar to those of the First District's RLF.

Information on financing programs through the State of South Dakota and other entities is also available at the District.
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