Loan Funds

REDI Loans

REDI (Revolving Economic Development and Initiative) is a low interest loan fund is available through the Governor’s Office of Economic Development to start-up firms, businesses that are expanding or relocating and local economic development corporations.

The REDI Fund provides up to 45 percent of a project's total cost. Companies should secure matching funds and be able to provide a 10 percent minimum equity contribution. Interest rates have remained at 3 percent since the program's inception, and loans are amortized up to 20 years on land and buildings, and 10 years on equipment, with a balloon payment due after five years.

SBA 504

The SBA 504 loan program offers subordinated, fixed rate financing to healthy and expanding small businesses. Long-tem, fixed rate financing (10-20 years) and reasonable rates (near long-term U.S. Treasury bond rates), make the 504 Program an attractive and effective economic development financing tool.

SBA 504 loans may be available through either GOED or First District Development Company  in Watertown. A 10 year debenture carries an approximate 6% interest rate.

APEX Fund

The APEX (Agricultural Processing and Export) Loan Program is designed to assist companies in communities with a population of 25,000 or less, or which add value to raw agricultural products through processing. The program is open to for-profit businesses and local economic development corporations and is available through GOED.

EDA and IRP Loans

First District Development Company also operates EDA (Economic Development Administration) and IRP (Intermediary Relending Program) loan programs that may provide up to $20,000 and $30,000 per job created, respectively. Loan terms are approximately 6% with a ten year term.

Brookings Area Development Corporation

Brookings Area Development Corporation provides below market loans for fixed assets and working capital. Job creation requirements apply. Contact the Brookings Economic Development Corporation for more information.