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NECOG DEVELOPMENT
CORPORATION
Revolving Loan Fund
Serving Northeast
South Dakota for over 15 Years
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PURPOSE
To stimulate business opportunity and development with an emphasis on
job creation.
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GOAL
To promote and assist in the funding of small business start ups,
purchase of existing businesses, and expansion of businesses which, in all
three instances, will create new or retain
current jobs.
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SOURCE OF FUNDS
$1.1 million EDA Federal Funds, $1 million USDA-IRP funding, and
$500,000 local matching funds.
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ELIGIBLE COUNTIES
Beadle, Brown, Campbell, Day, Edmunds,
Faulk, Hand, McPherson, Marshall,
Potter, Spink, and Walworth.
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CRITERIA
1. Use of Funds: (1) Business Start Up; (2)
Business Purchase; (3) Business Expansion.
Funds may not be used for businesses relocating out of the eligible
counties, as listed above. Refinancing of existing debt is also not
eligible. A company from another state or county may use the funds to
establish a branch in the area. May use funds if company is moving
from another country. Funds may not be used for relocation costs.
2. Must be for profit.
3. Must create Jobs. (generally $10,000
RLF funds per job.)
4. All projects must involve private financing. RLF monies are
provided for gap type financing. Individual must show that they are
unable to secure a private loan for the entire project. NEED A LETTER
OF PARTICIPATION BY AT LEAST ONE BANK. The letter should indicate the
amount of funds approved and the reason must be indicated specifically why
they are unable to fund the entire loan.
5. Individuals are required to provide 10% of project cost in equity,
which includes any equity that can be injected into the project cost.
Other private financing is required. The majority of the financing
should come from the private lender and owner equity. Our funds are not
provided as competition for private lenders and we encourage greater
participation from the individual and private lender.
6. A minimum of $2 private to $1 public investment must be leveraged.
7. Interest rates and other terms may vary according to project
needs. Generally, NECOG-DC interest rates are within 1% of prime.
8. A business plan is required. One source of assistance is the Small Business
Development Center,
Aberdeen,
626-2565. There is no charge for most of SBDC’s
services.
9. Applicant will be required to pay certain processing fees such as:
a. Credit Checks – Due
when submitting the loan application to the RLF Administration Board.
Paid to NECOG.
b. Loan
Processing Fee of 1 ½ % of RLF loan amount. Paid to NECOG.
c. Lien Fees. (Will vary
from loan to loan.) Paid to register of liens.
d. Attorney Fees. Paid to
attorney Fixed $159.00.
e. Title insurance fees, if
applicable (Will vary from loan to loan).
f. Other fees as required to
close the loan.
10. The completed application should be in our office by the 10th day of
the month. This will allow us time to review the application and any
other documentation required.
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Application
Procedures
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Click here to contact the RLF
Manager Eligible Project Costs List
Request
additional information or an application here
NON-DISCRIMINATION STATEMENT
In accordance with Federal law and U.S. Department of Agriculture policy,
this institution is prohibited from discriminating on the basis of race,
color, national origin, sex, age, or disability. (Not all prohibited
bases apply to all programs).
To file a complaint of discrimination, write USDA, Director, Office of Civil
Rights, Room 326-W, Whitten
Building, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call (202) 720-5964
(voice and TDD). USDA is an equal opportunity provider and employer.
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