S.D. Admin. R. 68:02:01:40

Current through Register Vol. 51, page 67, December 16, 2024

Section 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 impact of primary jobs created or retained;

(b) Net economic effect of increasing or stabilizing the economy on the community, area, and state;

(c) Competitive effect on existing businesses;

(d) Support of the public entities of the community and area;

(e) The amount of the owner's equity contributed to the project;

(f) The effect of the project on the environment, health, and safety of the people in the community, area, and state;

(g) Compatibility with economic development plans of the area and state;

(h) Type of business;

(i) Payroll, pay structure, and employee benefit structure;

(j) Number of jobs created or retained; and

(k) In the case of multifamily housing, the impact of the project on the availability of workforce within the project area.

(2) Business feasibility factors:

(a) The potential success of the business and the potential for creating quality jobs and the growth of those jobs;

(b) The character, experience, management record, and background of the applicant;

(c) The capacity of the applicant to repay the loan. In determining the capacity of the applicant, the board shall consider the following:

(i) The amount of the loan;

(ii) The economic feasibility of the project;

(iii) The ability of the applicant to service the debt from cash flow of operations, capital, or collateral;

(iv) The financial status of the project, business plan, and applicant;

(v) The satisfaction of engineering, legal, and environmental regulations; and

(vi) The availability of necessary public utilities;

(d) The total capitalization of the project, which includes all capitalization subordinated to the REDI fund;

(e) The amount, terms, and conditions of the loan and their compatibility with the needs of the business and the REDI fund; and

(f) The availability of sufficient collateral to secure the interests of the REDI fund.

S.D. Admin. R. 68:02:01:40

34 SDR 68, effective 9/13/2007; 46 SDR 123, effective 5/12/2020

General Authority: SDCL 1-16G-5, 1-16G-8(8).

Law Implemented: SDCL 1-16G-5, 1-16G-8(8).