South Dakota is streamlining its economic development loan rules by repealing outdated program provisions and updating references to current state law. The changes eliminate three separate loan programs (APEX and NNC guarantee program sections) and remove rules about how loan proceeds can be used and fund allocation, replacing vague statutory references with specific current law citations. The authority is also making technical clarifications—such as clarifying that borrowers with 20-percent ownership stakes must personally guarantee loans and that loan terms cannot exceed 80 percent of a project's useful life or 20 years. These changes clean up the regulations without altering the core requirements for businesses seeking economic development financing.
AI-generated from the proposed rule text — verify against the official documents.
The effect of the rules will be to repeal unnecessary provisions relating to loans made by the Economic Development Finance Authority. The proposed rules will also make technical corrections to certain statutory cross-references.
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