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For more capital-intensive projects, GOED offers a pooled bond program through the Economic Development Finance Authority (EDFA). The Economic Development Finance Authority prides itself on maintaining its “AA” rating by Standard and Poor’s, and as a result, can offer lower interest rates to borrowers. Bonds can be issued individually or pooled together to help lower the cost of the issuance. The program is open to all for-profit businesses that are engaged in industrial operations, ag processing or manufacturing.
Bonds can be either taxable or tax-exempt. To qualify for tax-exempt financing, the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80% of new construction or purchase an existing building, and 75% of new equipment costs, with no greater than 25% of the bond proceeds being used for ancillary activities such as office or inventory space.
All for-profit businesses that are engaged operating an industrial, ag processing or manufacturing business may apply for bond financing through the South Dakota Economic Development Finance Authority.
Individuals may also apply for Stand-Alone Bond Issuances when there is a need for an authorized issuing agency. The application needs to be completed for these requests as well.