Lake Francis Case Development Corp announced the reception of a $54,000 Revolving Loan Fund Grant from the United States Department of Agriculture (USDA) Rural Development. Mike Lauritsen, the former Executive Director of Lake Francis Case Development Corp, expressed his excitement about the grant, saying, “We are grateful to receive the $54,000 Revolving Loan Fund Grant from USDA Rural Development. Like many other communities in South Dakota, we are actively addressing the challenges of housing and childcare shortages. However, our focus is not solely limited to these issues; we are equally committed to business retention, expansion, and development. This grant will play a crucial role in supporting these objectives. For instance, we can provide financial assistance in the form of a $54,000 loan, matching the amount required by a small business for purchasing a new building. For example, if a small business would like to add on to their facility and need $100,000 for renovations or an addition, we can offer up to half of that loan at a below-market interest rate. Historically we have offered financing at half of what the commercial interest rate is. It’s important to emphasize that we are not in competition with our local banks. Instead, we aim to collaborate with them, assuming a second or third position in the loans, thereby reducing risk and making the loans more appealing to the banks. This partnership offers a great opportunity for small businesses to grow, as we can act as a true gap financier for them. As the Economic Development Corporation, we are willing to take on more risk and except a second or third position in the loan.”
The Revolving Loan Fund Grant program, offered by USDA Rural Development, primarily aims to support local businesses in their growth and development. The program targets businesses with fewer than 50 new workers and less than $1 million in gross revenue, ensuring that even the smallest enterprises receive the support needed to flourish and make significant contributions to the region’s prosperity.
In expressing the importance of this grant program, Lauritsen remarked, “USDA Rural Development’s Revolving Loan Fund Grant is a game-changer for small businesses in our area. It provides the necessary financial backing to help them grow, which is vital for our community’s overall economic well-being. This grant furthers our commitment to enhancing economic growth and supporting both new and established businesses in Chamberlain/Oacoma/Pukwana area. With this funding, Lake Francis Case Development Corp aims to grow businesses with essential resources, improve the economic climate, and enhance the overall quality of life in the Chamberlain/Oacoma/Pukwana area. ”
The grant program extends eligibility to rural public entities, including towns, communities, state agencies, authorities, nonprofit corporations, institutions of higher education, federally-recognized tribes, and rural cooperatives (if organized as private nonprofit corporations). The allocated grant funds must be utilized for projects directly benefiting rural areas or towns situated outside the urbanized periphery of any city with a population of 50,000 or more.
Lake Francis Case Development Corp acknowledges the program’s flexibility and no cost -sharing requirement, which allows smaller rural communities to access critical funding opportunities. Lauritsen stated, “We are grateful for USDA Rural Development’s commitment to making this program accessible to communities like Chamberlain. By eliminating cost-sharing requirements, more businesses can take advantage of this support, ultimately contributing to the growth of our local economy.”
The Revolving Loan Fund Grant encompasses two types of projects: Opportunity grants and Enterprise grants. Enterprise grants focus on initiatives that foster growth and development among small and emerging businesses in rural areas, supporting essential endeavors such as project planning, business counseling, market research, and community economic development.
On the other hand, Opportunity grants are designed to drive community economic development, technology-based economic development, and leadership and entrepreneur training, among other
valuable endeavors.
Lake Francis Case Development Corp has a track record of success in receiving and distributing USDA Rural Development funding, previously securing a $10,000 Technical Assistance Grant program last year. Utilizing these funds, the corporation significantly enhanced local businesses, particularly in the areas of marketing and social media training.
Lauritsen highlighted, “The previous TA funds made a substantial impact on local businesses by helping them establish a strong online presence. This led to increased customer engagement and repeat business, ultimately supporting job retention and growth in our community. As we continue to grow the revolving loan funds, currently amounting to over $250,000, these funds will perpetually support local businesses in the Chamberlain area.”
Lauritsen reiterated, “The revolving loan funds have been instrumental in job creation and economic growth. They have made a difference in our community and will continue to do so, ensuring a growing economic landscape for years to come.”
Lake Francis Case Development Corp extends its appreciation to USDA Rural Development for their commitment to supporting economic growth in rural communities. For further information and inquiries about the program, interested parties are encouraged to contact their local USDA Rural Development office.
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