Essential Capital to Businesses Enables Rural Communities to Thrive
Monday, February 10, 2014
In 1978, the Northeast South Dakota Economic Corporation (NESDEC, also known as GROW South Dakota) was created to assist northeast South Dakota in business ownership, business development and job creation in low income and rural communities. To achieve these goals a revolving loan fund was established to provide an affordable financing option for new, and existing, small business owners. As demand grew, additional capital was needed to facilitate the expansion of the revolving loan fund.
USDA Rural Development’s Intermediary Relending Program (IRP), Rural Business Enterprise Grants (RBEG), Rural Business Opportunity Grants (RBOG) and the Rural Microentrepreneur Assistance Program (RMAP) have been valuable partners in funding the continued expansion and shared success of the revolving loan fund. The funds from USDA Rural Development have enabled rural communities in South Dakota access to low-interest loans that may not otherwise have been available.
In 2013, NESDEC closed 72 loans advancing a one-year record of $4.5 million. The same year NESDEC celebrated its 35th anniversary. In 35 years, 1,756 loans were made to 1,075 different businesses totaling $52.7 million loaned and $244.6 million leveraged. In the process NESDEC helped create or retain 9,367 jobs.
Rural Development’s partnership with GROW South Dakota has provided essential capital to businesses that enables rural communities in northeast South Dakota to thrive.
NESDEC’s mission is to stimulate economic opportunities through loans, technical assistance and partnerships. For more information on the loan program, call 1-605-698-7654. GROW South Dakota serves over 10,000 clients annually through housing, community and economic development.
For more information on Rural Development, click here.