Contact Info

REDI Fund Loans

Purpose

We give new meaning to the phrase "ready, willing and able." Our 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, businesses that are expanding or relocating and local economic development corporations.

How it Works

The REDI Fund provides up to 45 percent of a project's total cost. Companies should secure interim (construction) financing, matching funds for permanent financing and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.

Costs eligible for participation may include:

  • the purchase of land and the associated site improvements
  • construction, acquisition or renovation of buildings
  • the purchase and installation of machinery and equipment

Costs that are NOT eligible include:

  • refinancing of existing debt
  • short-term, interim financing for the construction or acquisition phase of a project
  • trade receivables
  • inventory
  • other working capital needs
  • preliminary design stage costs which include, but are not limited to market research, written cost estimates, development of business plan
  • preliminary product development costs

Terms

The REDI loan program offers fixed rate interest which is currently 2%. Loans may be amortized up to 20 years on land and buildings and up to 10 years on equipment, with a balloon payment due after five years.

Applications

(Option 1) You may view and print the application as a PDF file using Adobe Reader. Please note that while you may type your information onto this application and then print it, once you leave the site the information will not be saved. If you do not currently have Adobe Reader, click on the Get Adobe Reader button below to download the program for free.

(Option 2) You may open the application as a Microsoft Word file and save it to your computer. The file can then be filled out and printed. *If you do not have Microsoft Word, you will not be able to open this application.

More Information

For more information, contact REDI Loan Officer Cassidy Kulesa at (605) 773-GOED (4633), Cassidy.Kulesa@sdreadytowork.com, or, contact the Business Development Representative in your area.