Section · Administrative Rules of South Dakota · View on sdlegislature.gov ↗
for board action. When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following: (1) Project impact factors: (a) Economic impact of primary jobs created or retained; (b) Net economic effect of increasing or stabilizing the economy on the community, area, and state; (c) Competitive effect on existing businesses; (d) Support of the public entities of the community and area; (e) The amount of the owner's equity contributed to the project; (f) The effect of the project on the environment, health, and safety of the people in the community, area, and state; (g) Compatibility with economic development plans of the area and state; (h) Type of business; (i) Payroll, pay structure, and employee benefit structure; (j) Number of jobs created or retained; and (k) In the case of multifamily housing, the impact of the project on the availability of workforce within the project area; (2) Business feasibility factors: (a) The potential success of the business and the potential for creating quality jobs and the growth of those jobs; (b) The character, experience, management record, and background of the applicant; (c) The capacity of the applicant to repay the loan. In determining the capacity of the applicant, the board shall consider the following: (i) The amount of the loan; (ii) The economic feasibility of the project; (iii) The ability of the applicant to service the debt from cash flow of operations, capital, or collateral; (iv) The financial status of the project, business plan, and applicant; (v) The satisfaction of engineering, legal, and environmental regulations; and (vi) The availability of necessary public utilities; (d) The total capitalization of the project, which includes all capitalization subordinated to the REDI fund; (e) The amount, terms, and conditions of the loan and their compatibility with the needs of the business and the REDI fund; and (f) The availability of sufficient collateral to secure the interests of the REDI fund.
Source: 34 SDR 68, effective September 13, 2007; 46 SDR 123, effective May 12, 2020.