South Dakota Administrative Code

Rule 68:02:01:38 Use of loan proceeds. 68:02:01:38. Use of loan proceeds. Loan proceeds may be used for any portion of the total project costs. Except as otherwise provided in this chapter, loan proceeds may not be used for costs associated with the preliminary design stage. Loan…

Rule 68:02:01:39 REDI loan as take-out financing. 68:02:01:39. REDI loan as take-out financing. Unless otherwise specifically provided in the resolution or motion approving the loan, the applicant shall use the loan to pay off interim financing incurred for the project. Source: 3…

Rule 68:02:01:40 Factors for board action. 68:02:01:40. Factors for board action. When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following: (1) Project impact factors: (a) Economic impa…

Rule 68:02:01:41 Board action on applications. 68:02:01:41. Board action on applications. Within 30 days after GOED receives a complete application, the board shall either approve the application as requested, disapprove the application for modification, approve the application c…

Rule 68:02:01:42 Acceptance and time restrictions of applicant. 68:02:01:42. Acceptance and time restrictions of applicant. The applicant must comply with any conditions required by the board before the application is approved. Within six months after the official loan approval b…

Rule 68:02:01:43 Review of financial status. 68:02:01:43. Review of financial status. After the loan is approved but before the loan is closed, the board or GOED may conduct an overall review of the applicant's financial status. The review may include an analysis of all assets an…

Rule 68:02:01:44 Loan agreement -- Employment agreement -- Security. 68:02:01:44. Loan agreement -- Employment agreement -- Security. After the application for a loan is approved, the board and the borrower shall execute a loan agreement, employment agreement, and any other loan …

Rule 68:02:01:45 Borrower reporting requirements. 68:02:01:45. Borrower reporting requirements. The borrower shall submit to the board annually the following information: (1) Employment report; (2) Federal tax returns or periodic financial statements, or both, as requested by the…

Rule 68:02:01:46 Inspection by the board and retention of records. 68:02:01:46. Inspection by the board and retention of records. During the term of the loan, the board or GOED may inspect construction; inspect the borrower's operations, books, and records; and request the borrow…

68:02:01:47. Additional notification requirements. The borrower shall provide written notice to the board with ten business days of any: (1) Change in top level management of the borrower's business; (2) Change in ownership of ten percent or more of the business's stock, membersh…

68:02:01:48. Loan term and amortization. The maturity of a loan and amortization of payments are as follows: (1) For a project consisting solely of multifamily housing, a maturity date up to thirty years from the date of loan closing, with payments amortized over not more than th…

68:02:01:48.01. Interest rate. The board shall establish the standard interest rate for REDI loans from time-to-time and publish the rates on the GOED website. The board may deviate from the standard interest rate based on the economic impact of the project, nature and extent of …

Rule 68:02:01:49 Default. 68:02:01:49. Default. If the borrower violates any of the terms of the loan agreement, the other loan documents, this chapter, or other applicable law, the board may declare the loan in default. Upon default, the board may do one or more of the following…

68:02:01:50. Delegation of administrative functions. GOED shall, on behalf of the board with respect to loans: (1) Perform the administrative functions of the creation, processing, and review of loan applications, including the financial status of an applicant, prior to board con…

Rule 68:02:01:51 Official forms. 68:02:01:51. Official forms. The board may from time-to-time establish official forms of loan documents, including a loan agreement, promissory note, mortgage, security agreement, employment agreement, and such other documents, certifications, and…

Rule 68:02:01:52 Conflicts of interest. 68:02:01:52. Conflicts of interest. No member of the board or GOED staff may participate in or vote upon a decision of the board relating to an application or loan servicing action relating to a borrower in which that individual has a direc…

Rule 68:02:01:53 Confidentiality. 68:02:01:53. Confidentiality. The board, any committee of the board, and the GOED shall, to the extent it constitutes or contains trade secrets or commercial or financial information relating to the operation of an applicant or borrower, maintain…

Rule 68:02:01:54 Repealed. 68:02:01:54. Pre-existing loans. Repealed. Source: 34 SDR 68, effective September 13, 2007; 46 SDR 123, effective May 12, 2020.

68:02:01:55. Banking Commission examination. The board shall request the South Dakota State Banking Commission to make an annual examination of the board's lending policies and procedures and the documentation and classification of loans in the REDI fund loan portfolio and all ot…

Rule 68:02:01:56 Credit committee -- Other committees. 68:02:01:56. Credit committee -- Other committees. The chair shall appoint and may remove the members of the credit committee. The credit committee has the powers and duties described in this chapter and such other powers and…

Rule 68:02:02:01 Repealed. 68:02:02:01. Definitions. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:02 Repealed. 68:02:02:02. Eligibility requirements. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:03 Repealed. 68:02:02:03. Application requirements. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:04 Repealed. 68:02:02:04. Factors for board action. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:05 Repealed. 68:02:02:05. Board action on applications. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:06 Repealed. 68:02:02:06. Loan commitments. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:07 Repealed. 68:02:02:07. Loan agreement. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:08 Repealed. 68:02:02:08. Maturity and interest rate. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:09 Repealed. 68:02:02:09. Review of financial status. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:10 Repealed. 68:02:02:10. Loan disbursements. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:11 Repealed. 68:02:02:11. Reporting requirements. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:12 Repealed. 68:02:02:12. Notice requirements. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:13 Repealed. 68:02:02:13. Default on loan agreement. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:14 Repealed. 68:02:02:14. Delegation of administrative functions. Repealed. Source: 19 SDR 73, effective November 19, 1992; repealed, 34 SDR 68, effective September 13, 2007.

Rule 68:02:02:15 Definitions. 68:02:02:15. Definitions. Terms used in this chapter mean: (1) "Applicant," any natural person or entity that has completed a VASF loan application; (2) "Board," the Board of Economic Development; (3) "Borrower," an applicant who has been awarded a V…

Rule 68:02:02:16 Eligibility. 68:02:02:16. Eligibility. Any natural person or entity whose project meets the following criterion may apply for a VASF loan: (1) The industrial and nonfood production processes of the project utilize South Dakota agricultural products; or (2) The fo…

Rule 68:02:02:17 Application requirements -- Screening. 68:02:02:17. Application requirements -- Screening. Application forms shall be provided by GOED, and shall be completed and signed before being presented to the board. GOED shall screen all applications for completeness and …

Rule 68:02:02:18 Loan amount. 68:02:02:18. Loan amount. Unless waived by the affirmative vote of two-thirds of the members of the board present and voting, the total amount of a loan made pursuant to this chapter may not exceed $100,000. Unless waived by the affirmative vote of t…

Rule 68:02:02:19 Equity contribution. 68:02:02:19. Equity contribution. An applicant shall provide an equity contribution of at least 10 percent of the total cost of the study. The requirement may be waived by a two-thirds affirmative vote of the members of the board present and …

Rule 68:02:02:20 Uses of loan proceeds -- Board-funded study. 68:02:02:20. Uses of loan proceeds -- Board-funded study. Loan proceeds may be used for salaries, consultant contracts, supplies, and necessary services for studies, and for other purposes not listed in this section as…

Rule 68:02:02:21 Factors for board action. 68:02:02:21. Factors for board action. When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following: (1) The concept is new technology or a new ap…

Rule 68:02:02:22 Board action on applications. 68:02:02:22. Board action on applications. Within 30 days after GOED receives a completed application, the board shall either approve the application as requested, disapprove the application for modification, approve the application …

Rule 68:02:02:23 Acceptance and time restrictions of applicant. 68:02:02:23. Acceptance and time restrictions of applicant. The applicant must comply with any conditions required by the board before the application is approved. Within sixty days after official loan approval by th…

Rule 68:02:02:24 Review of financial status. 68:02:02:24. Review of financial status. After the loan is approved but before the loan is closed, the board or GOED may conduct an overall review of the applicant's financial status. This review may include an analysis of all assets a…

Rule 68:02:02:25 Loan documents. 68:02:02:25. Loan documents. After an application for a loan is approved, the board shall execute a loan agreement with the borrower. The loan agreement shall contain the rights and responsibilities of the parties and the terms and conditions of t…

Rule 68:02:02:26 Reporting. 68:02:02:26. Reporting. The borrower shall submit to the board quarterly reports describing progress on the study, including compliance with the time line and budget contained in the application. Any material deviation from any condition imposed by the…

Rule 68:02:02:27 Inspection by the board and retention of records. 68:02:02:27. Inspection by the board and retention of records. All financial documents, books, receipts, orders, expenditures, electronic data, and accounting procedures and practices of the borrower are subject t…

Rule 68:02:02:28 Additional notification requirements. 68:02:02:28. Additional notification requirements. The borrower shall provide the board with written notice within 10 business days of any change in top level management of the borrower's business or of any plan for sale, pub…

Rule 68:02:02:29 Maturity and interest rate. 68:02:02:29. Maturity and interest rate. Unless different terms are established upon the affirmative vote of two-thirds of the members of the board present and voting, the maturity date of the VASF loan may not be more than six years f…

Rule 68:02:02:30 Loan forgiveness. 68:02:02:30. Loan forgiveness. Upon the borrower's written petition and a showing of good cause, the board may forgive all or part of a VASF loan upon terms and conditions established by the board. When determining whether to forgive all or any …