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
Structure
- 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
Collateral
- Second on assets that banks or credit union take as collateral
Fees
