Press Room > 2004 :

REDI Fund Dollars Help Regional Revolving Loan Funds

RELEASE DATE: Monday, March 15, 2004

For More Information Contact: Mary Lehecka Nelson, 773-3301

Pierre, SD – Gov. Mike Rounds’ plan to commit $3 million of the REDI (Revolving Economic Development & Initiative) Fund for use in regional revolving loan funds was put into action as the Board of Economic Development approved the first $1 million at its March meeting.

“This is a terrific use of REDI Fund dollars,” said Gov. Rounds. “It’s one more way we can get dollars into the hands of South Dakota businesses.”

First District Development Corporation (FDDC), located in Watertown, and Northeast South Dakota Economic Corporation (NESDEC), located in Sisseton, each received $500,000 to be loaned out to businesses in their districts. The money will be loaned at one percent for 15 years.

“This gives the organization time to see a return on its investment,” said Rounds. “Our goal is to make the revolving loan funds successful and self-sustaining.”

Bob Hull, executive director, NESDEC, is thrilled with the infusion of capital. “What it does for us is increase our lending capacity. In another sense, it allows us to make more capital available to small businesses in need and definitely fills a gap where other funds are restricted,” Hull said.

Roger Clark, executive vice president, FDDC, agreed that the loan will allow his organization to get more money out to new and/or expanding businesses. “Our end goal is to help companies create employment opportunities and this money will help make that possible,” Clark said.

Hull commended the state for taking this step to enhance regional revolving loan funds. “It’s clear the state recognizes the need for additional capital opportunities for small businesses. I look forward to continuing our partnership with the state to improve economic development in South Dakota,” he said.

For more information, contact Mary Lehecka- Nelson, South Dakota Department of Tourism & State Development, (605)773-3301.