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State boards approve $30 million in bonds, $2.7 million in loans and grants


State boards approve $30 million in bonds, $2.7 million in loans and grants

Jun 13, 2024 | 12:46 pm ET
By Joshua Haiar
State boards approve $30 million in bonds, $2.7 million in loans and grants
The South Dakota Capitol grounds and lake in Pierre. (John Hult/South Dakota Searchlight)

Loans and grants worth $2.7 million are headed to South Dakota businesses and communities after votes from two state government boards.

The Board of Economic Development approved the loans and grants during a Wednesday meeting. All the money will be administered by the Governor’s Office of Economic Development.

The Economic Development Finance Authority, meanwhile, approved $30 million in bonds for separate projects. The authority and board are comprised of many of the same members, all of whom were appointed by the governor.

The bonds will see the awarded companies’ debts purchased and sold to investors. The loans are money borrowed from the state and repaid with interest.

A press release from the Governor’s Office says the projects funded by the bonds, loans and grants will create 148 new jobs.

The projects receiving bonds through the Livestock Nutrient Management Bond program, which issues tax-exempt bonds to purchases (typically local banks) who set the repayment terms and interest rates for the company borrowing the money, include:

  • Plainview Dairy, LLC: A dairy near Toronto approved for up to $25 million in bonds to build structures to manage manure.
  • Wildrose Dairy, LLC: A dairy in Brandt approved for up to $4.8 million in bonds to help manage manure.

Projects receiving SD Works loans, which are construction, equipment and general expense loans typically less than $1 million with a 3% interest rate, include:

  • Midstates, Inc.: An Aberdeen commercial printing company approved for a $800,000 SD Works loan to purchase new printing equipment.
  • JMP Design and Catering, LLC: A new Madison event venue approved for a $549,696 SD Works loan to construct and furnish the space.
  • RF Holdings, LLC: A Watertown business approved for a $364,000 SD Works loan to construct a new building and purchase equipment.
  • BibiSol, LLC: A Sioux Falls Mexican restaurant approved for a $57,300 SD Works loan. The loan will help the business purchase furniture, fixtures and equipment for a new restaurant.
  • Never Too Busy Construction: A Lennox construction company received a $46,500 SD Works loan to purchase an existing construction business. 

Other projects receiving funding from the state include:

  • Grant County Development Corporation: A Milbank economic development corporation approved for a $426,025 REDI loan to purchase vacant land for an industrial park. The REDI Fund offers low-interest loans to promote economic growth and job creation, covering up to 45% of a project’s cost. Projects can include land purchases, site improvements, building costs, or machinery and equipment purchases.
  • City of Canton: The city was approved for a $423,000 Local Infrastructure Improvement grant to build out infrastructure at an industrial park. Local governments, development corporations and tribal governments can use the grants to help fund economic development infrastructure projects.
  • City of Dell Rapids: The city was awarded an Economic Development Partnership Program grant for $1,000 to send people to a training program. The program provides matching grants to assist in funding equipment and training needs for economic development programs.