INCENTIVES
EDFA
Another financing option available in South Dakota is the Pooled
Bond Program, available through the
state's Economic Development Finance Authority (EDFA). This loan
program, designed for more capital
intensive projects, provides small businesses access to the public
bond market through the
issuance of tax exempt bonds. The program can fund projects individually
or pool them to help lower the
cost of the bond issuance. One of the biggest advantages of this
program is that borrowers are guaranteed a
long-term loan and a fixed interest rate.
Another benefit is the EDFA's "A" rating by Standard
and Poors. By maintaining an "A" rating, EDFA is
able to offer a lower interest rate to the borrower.
This program is open to for-profit manufacturing
businesses. The bonds can be used for three main
purposes: construction; storage, distribution or manufacturing
of products; or the purchase
of new machinery and equipment used in an industrial process.
Our tax-exempt bonds can fund
project costs up to $10 million. We also offer taxable bonds
that do not limit the project cost
amount.
For additional information, contact:
Finance Division
Governor's
Office of Economic Development
711 East Wells Avenue
Pierre, SD 57501-3369
Phone: 605-773-5032
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