First District was recently notified of an approval of $1,560,000 to capitalize a Revolving Loan Fund (RLF) through the Department of Commerce’s Economic Development Administration (EDA) as a Coronavirus Aid, Relief, and Economic Security (CARES) Act Disaster Recovery and Resiliency Award. EDA’s overall mission is to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.
With that mission in mind, the particular scope for this RLF award is three-fold:
- To alleviate sudden and severe economic dislocation caused by the coronavirus (COVID-19) pandemic,
- To provide permanent resources to support economic resiliency, and
- To further the long-term economic adjustment objectives of the region served by this award.
This Revolving Loan Fund will assist borrowers in the following geographic region: Brookings, Codington, Clark, Deuel, Grant, Hamlin, Kingsbury, Lake, Miner, Moody, and Roberts Counties in South Dakota. First District will have 24 months to disburse the funds to small businesses.
Loan terms will depend on use of funds, with an interest rate of no more than 2.5%. More details will be provided on the use of these funds once requirements have been set. We look forward to having another financial resource to offer businesses during these unprecedented economic times.