State board awards $2.38 million in low-interest business loans

The South Dakota State Capitol, pictured on Nov. 2, 2022. (John Hult/South Dakota Searchlight)

The state Board of Economic Development approved two business loans this week totaling $2.38 million.

The board met Wednesday and approved a $1.8 million Revolving Economic Development & Initiative (REDI) loan for Southfork Investments LLC to buy and improve a building, and a $575,000 SD Works loan for Harris Machine Co. to buy equipment. Harris Machine, a manufacturing company in Aberdeen, was co-founded by Jay Harris, who’s listed in public corporate filings as the organizer of Southfork Investments.

The loan programs are administered by the Governor’s Office of Economic Development.

The REDI Fund offers low-interest loans to promote economic growth and job creation, covering up to 45% of a project’s cost. Projects can include land purchases, site improvements, construction, acquisition or renovation of a building, or machinery and equipment purchases.

The board has approved five REDI fund loans this year totaling $8.71 million.

The SD Works program offers loans to businesses for construction, buying equipment and general expenses.

The board has approved 13 SD Works loans so far this year totaling $8.04 million.