|Jun 27, 2013 --
Since 1978 GROW South Dakota, also known as Northeast South Dakota Economic Corporation, a 501 (c)(3) nonprofit corporation, has managed a revolving loan fund that serves new and existing business owners in northeast South Dakota. To meet loan demand, additional capital was needed to facilitate the expansion. USDA Rural Development’s Rural Microenterprise Assistance Program (RMAP) has been a valuable partner in funding the continued expansion and shared success of the revolving loan fund. GROW South Dakota made its first RMAP loan in December of 2010.
The additional RMAP funds from USDA Rural Development enabled rural communities in South Dakota to access low-interest loans that were otherwise not available. Since December of 2010, 25 businesses in 17 different South Dakota communities have received more than $682,000 in financing through GROW South Dakota’s relending of RMAP funds. Combined with other lenders, banks and development corporations, created a combined $1.2 million in total projects, creating or maintaining 130 local jobs.
The success in re-lending of the funds is not simply that businesses have access to affordable interest rate loans, but the reinvestment in the community that occurs with the business cost savings. A rural South Dakota community had three different businesses apply, and receive, RMAP loan funds. Those businesses represent construction and retail industries: all of which supply important services to the community and allow the residents to live, work and shop locally.
Rural Development’s partnership with GROW South Dakota has provided essential capital and valuable resources to provide technical assistance to businesses that enables rural communities to thrive.