PEDCO Loan Program Overview

  • Business/commercial loans for businesses needing working capital and interim construction financing
  • Term of 1 to 5 years

Eligible Borrowers

  • Businesses seeking new financing located in Pierre or Hughes County

Ineligible Borrowers

  • Speculative Development
  • Lending institutions, insurance companies
  • Businesses engaged in pyramid sales
  • Gambling concerns and private clubs
  • Businesses engaged in activities prohibited by law
  • Business that are not members in good standing of PEDCO

Eligible Uses of Funds

  • Business purposes including: start up costs, purchase of land, site improvements, machinery and equipment, and interim construction loans

Ineligible Use of Funds

  • Purchase, construction, renovation or tenant improvements of an eligible place of business that is for passive real estate investment purposes
  • Refinancing purposes
  • Repay delinquent taxes
  • Reimburse funds owed to any owner


  • PEDCO may fund up to 45% of a project in a subordinated lien position
  • Bank or credit union must participate in a project with a minimum of 20%
  • Borrower must demonstrate that credit is not available elsewhere on reasonable terms

The Process

  • The bank or credit union will share its credit analysis with PEDCO for review
  • PEDCO Executive Committee will meet to review the project on an as needed basis


  • Second on assets that banks or credit union take as collateral


  • No origination fees

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