Revolving Loan Funds – Another Tool to Assist Businesses

FDDC has been a partner of small businesses for 40 years and its experienced staff works to customize a loan product for each of its customers. In addition to the SBA 504 program, First District Development Company offers financial assistance through our Revolving Loan Funds. FDDC’s earliest Revolving Loan Funds (RLFs) were established in 1986 with funds from the Economic Development Administration, USDA Rural Development, and state and local matching funds. FDDC currently retains or manages nine RLFs that can be used in certain geographic areas in Eastern South Dakota. This includes separate funds FDDC manages for Deuel, Hamlin, and Kingsbury Counties and the Lake Preston Development Corporation. All of our RLF loan programs offer new and existing small businesses low, long-term fixed interest rate financing. Another perk to FDDC’s small business client is they can get into their project with minimal borrower injection. Recently, two businesses took advantage of these Revolving Loan Funds…

Hidewood Meats, Inc., Brandt, SD
With 35 years of experience working in the meat cutting and processing industry, Kevin Nielsen, along with his wife Carol, decided to open their own custom meat processing business with the assistance of First District’s Revolving Loan Funds (RLF) and financing provided by Dacotah Bank in Watertown. The loan funds were used to construct the new facility and purchase equipment.

Hidewood Meats, Inc., is located west of Brandt, South Dakota, adjacent to the Nielsens’ personal residence. Hidewood Meats provides custom meat processing of beef, pork, lamb, goat, and deer. In addition, they have a variety of retail items including: all cuts of steaks, bacon, flavored beef and brat patties, pork chops, flavored sticks, summer sausage, Bongard’s cheese, Quail’s Honey, barbeque sauces, meat seasonings, etc. With a wide variety of options, there is something for everyone.

Iron Ranch Manufacturing, Watertown, SD
Charlie Raml dba Iron Ranch Manufacturing has been in operation since January 2013. Iron Ranch Manufacturing specializes in manufacturing livestock equipment and custom design. Iron Ranch’s products are designed to assist livestock owners in operating in the most efficient manner possible, while being safe. Calf shelters (pictured), portable windbreaks, freestanding panels, freestanding creep panels, and continuous fence panels are the main products Iron Ranch sells. Charlie has integrated innovations, such as automatic latches, internal gates within the creep panels, drop down gates, a new 360 degree hinge design, and more, to ensure maximum efficiency and safety for the operator. In addition to Iron Ranch’s main line of products, Charlie also takes on custom job requests from livestock owners, as he has the skillset, computer technology, and equipment to bring his customers’ ideas to life. Charlie Raml utilized the RLF funds to purchase new equipment allowing Iron Ranch Manufacturing to grow, as work currently outsourced will now be able to be done in-house.

All of our Revolving Loan Funds are used in conjunction with local lender financing to assist businesses that create or retain employment opportunities as a result of their projects. These funds are utilized for new business construction projects, existing business purchases, or expansion projects. In total, we currently have approximately $1.7 million available to lend out. Generally used for smaller projects, the maximum available to lend to one borrower is $250,000.

For more information on these programs contact FDDC.