Lake Francis Case Development Corp recently received a $54,000 Revolving Loan Fund Grant from the United States Department of Agriculture Rural Development.
Mike Lauritsen, the former Executive Director of Lake Francis Case Development Corp, expressed his excitement about the grant, saying, “We are grateful to receive the $54,000 Revolving Loan Fund Grant from USDA Rural Development. Like many other communities in South Dakota, we are actively addressing the challenges of housing and childcare shortages. However, our focus is not solely limited to these issues; we are equally committed to business retention, expansion, and development.
This grant will play a crucial role in supporting these objectives. For instance, we can provide financial assistance in the form of a $54,000 loan, matching the amount required by a small business for purchasing a new building. For example, if a small business would like to add on to their facility and need $100,000 for renovations or an addition, we can offer up to half of that loan at a below-market interest rate. Historically we have offered financing at half of what the commercial interest rate is. It’s important to emphasize that we are not in competition with our local banks. Instead, we aim to collaborate with them, assuming a second or third position in the loans, thereby reducing risk and making the loans more appealing to the banks. This partnership offers a great opportunity for small businesses to grow, as we can act as a true gap financier for them. As the Economic Development Corporation, we are willing to take on more risk and except a second or third position in the loan.”
The Revolving Loan Fund Grant program, offered by USDA Rural Development, primarily aims to support local businesses in their growth and development. The program targets businesses with fewer than 50 new workers and less than $1 million in gross revenue, ensuring that even the smallest enterprises receive the support needed to flourish and make significant contributions to the region’s prosperity.