Capital Investment Fund
The Dakota Resources Capital Investment Fund (CIF) builds financial capacity of *rural Economic Development Corporations and Revolving Loan Funds (CDFIs) that finance local development projects.
Dakota Resources is a certified CDFI by the United States Department of Treasury.
*Rural is defined as an area outside the urbanized periphery of a metro area and under 50,000 in population
- Straight forward application and underwriting process
- Flexible capital, with neither job creation or geographic requirements (beyond rural) nor limits or restrictions on the end user’s type of projects or businesses financed
- Capital may be used as local matching funds when applying for State, Federal, or other sources of funding
- Capital may be blended with other funds to achieve an attractive effective interest rate
- Loan may be renewed at maturity, subject to prevailing rates, fees, and availability of capital
A qualified borrower must:
- Use the capital in a way that is consistent with Dakota Resources’ mission to stimulate financial investment in rural communities that are invested in themselves
- Have the capacity to productively use capital
- Conduct a minimum of 50% of financing activity in a rural market, defined as an area outside the urbanized periphery of a metro area and under 50,000 in population
*Additional qualifications may apply
TERMS (EFFECTIVE JANUARY 1, 2018)
|Current Rate||5 Year Term||10 Year Term||Additional information|
|Fixed Rate||3.85%||4.0%||Subject to change until the loan commitment fee has been paid|
|Variable Rate||3.7%||Adjusts annually on January 1.|
- Repayment is interest-only due quarterly with ACH set up required. Principal due at
- Loan Fee is 1% of the principal amount due at origination or upon renewal
- Approvals are granted for 1 year subject to no material changes.
- Funds can be committed for up to six months with loan fee paid.
- No prepayment penalty for early principal payment.
- Unsecured credit with no collateral requirement.
- $100,000 minimum loan. Advances can be monthly with $100,000 minimum during
- Loan maximum depends on the size of the Borrower’s current capital pool and the
experience of the organization, and no more than 20% of the Capital Investment Fund.
- Requires an annual review with financials submitted within 180 days of fiscal year end.
Potential uses of funds:
- Micro Loans
- Business Loans
- Community Loans
- Leasehold Property Development
- Industrial Park Development
- Housing Development
- Other Financial Products
*We underwrite the organization—not the projects that will be funded. Click here for the Capital Investment Fund loan application
CAPITAL INVESTMENT FUND BORROWERS
- Aberdeen Development Corporation
- Arlington Community Development Corporation
- Beadle and Spink Enterprise Community
- Beresford Economic Development Corporation
- DeSmet Development Corporation
- Entrepreneur Fund
- Faulkton Area Economic Development Corporation
- Greater Huron Development Corporation
- Lake Area Improvement Corp
- GROW South Dakota
- Pierre Economic Development Corporation
- Rural Electric Economic Development, Inc.
- Sturgis Economic Development Corporation
- Vermillion Area Chamber of Commerce & Development Company
- Webster Area Development Corporation
- Yankton Area Progressive Growth
CAPITAL INVESTMENT FUND INVESTORS
- 1st Financial Bank USA
- *Avera Health
- Bank of the West
- BankWest, Inc.
- *Black Hills Corporation
- Calvert Fund
- CDFI Fund (US Department of the Treasury)
- Citi Foundation
- CorTrust Bank
- Communities At Work Fund (Citi)
- Dacotah Bank
- First Bank & Trust
- First Dakota National Bank
- First National Bank in Sioux Falls
- First National Bank South Dakota
- First National of Nebraska CDC
- First PREMIER Bank
- First Interstate BancSystem
- Governor’s Office of Economic Development (GOED)
- Great Western Bank
- Home Federal Bank
- Midcontinent Media, Inc
- Norg Sanderson
- Opportunity Finance Network (OFN)
- Sanford Health
- SDN Communications
- Sioux Falls Development Foundation
- Target National Bank
- US Bank
- Wells Fargo CDC
- Wells Fargo Financial
- Wells Fargo SD NA
- *Xcel Energy Inc.