South Dakota Small Business Lending Programs Awarded Additional $4.4 Million
Monday, February 24, 2014
South Dakota Governor's Office of Economic Development
PIERRE, S.D. – The South Dakota Governor’s Office of Economic Development (GOED) announced today that it has secured an additional $4,477,239 in funding for the state’s small businesses through the third disbursement from the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI). South Dakota is the 15th state to receive its third disbursement.
“I am pleased to see our success is being rewarded with an additional $4.4 million to fund the growth of South Dakota’s small business community,” said Pat Costello, Commissioner. “With the help of South Dakota’s financial institutions, we hope to leverage these funds with private capital to generate $44 million for our state’s economy.”
The state was awarded a total allocation of $13.2 million in September of 2011. The state is receiving its final disbursement after having successfully committed more than $8 million or 80 percent of the first two disbursements received to date.
“Through the first and second disbursements we were able to support 14 new loans through our South Dakota Works Program. The net result of these loans is 75 jobs that were either added or preserved for South Dakota citizens and their families,” said Costello. “We hope to build on this momentum by engaging even more financial services partners to put this funding to work in the community as quickly as possible.”
“Increasing our inventory through a South Dakota Works loan helped us grow,” said Gary Fish, Chief Financial Officer of Renew Energy Maintenance. The Sioux Falls company received a $150,000 loan through South Dakota Works to undergo an expansion.
South Dakota’s SSBCI funding is distributed through the GOED. The program is designed to help businesses with 750 or fewer employees obtain loans from their local banks for working capital, inventory, real estate or equipment purchases, or lines of credit.