Dakota Resources Receives $10 MM Loan as USDA Launches Re-lending Program
Renner, SD – U.S. Department of Agriculture Rural Development Acting State Director Bruce Jones announced that Dakota Resources will receive a Community Facility Direct Re-lending Program loan in the amount of $10 million for relending in South Dakota rural communities. USDA Rural Development Tim Potts was in Renner to recognize each of them on Jones’ behalf.
“The long standing partnership USDA has with Dakota Resources represents the immense value of the organization and the vital role they have in supporting our rural South Dakota communities,” said Jones. “This funding will enable both organizations to bolster opportunity to our communities through relending, thereby supporting essential community facilities that South Dakotan’s rely on.”
As a re-lender, Dakota Resources will loan funds to applicants primarily for projects in or serving high poverty areas or persistent poverty counties eligible under the Community Facility Loan program.
Eligible applicants, including public bodies, tribes, and community-based nonprofit organizations, for the loans financed through the Community Facilities Re-Lending Program may use the funds from Dakota Resources to purchase, construct, and/or improve essential community facilities, purchase equipment, and pay related project expenses. Examples of allowable facilities include health care facilities (such as hospitals, medical or dental clinics, or assisted-living facilities); public facilities such as town halls or courthouses; street improvements; community support facilities such as child care or community centers, fairgrounds, or transitional housing; public safety facilities; and educational facilities such as museums, libraries, colleges, and public or private schools.
USDA expects the financing to serve as a catalyst for additional rural investments. This financing has two additional unique features. First, private financial institutions, including Bank of America and others, are providing guarantees for a portion of the loans. Second, Dakota Resources has secured a $1.125 million Uplift America grant provided by the Northwest Area Foundation, one of seven of the nation’s premier philanthropic organizations assisting with capacity building. The Mary Reynolds Babcock Foundation will manage this $22 million Uplift America grant fund.
Dakota Resources is a certified Community Development Financial Institution under the United States Department of the Treasury with the purpose of stimulating financial and human investment in communities that are invested in themselves. They will help you and your community by identifying resource gaps in support of economic and community development, proactively educate and collaborate toward innovate solutions, share diversified, customized toolbox of resources that support economic and community development, and actively engage individuals, organizations, and the broader community in real and lasting change. Contact Jay Headley for more information about loan products for rural communities at (605) 937-8255 or firstname.lastname@example.org.
Since 2009, USDA Rural Development (@USDARD) has funded nearly 9,200 community facilities such as schools, public safety and health care facilities; invested nearly $13 billion to start or expand nearly 112,000 rural businesses; helped 1.1 million rural residents buy homes; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. USDA also has invested $31.3 billion in 963 electric projects that have financed more than 185,000 miles of transmission and distribution lines serving 4.6 million rural residents. For more information, visit www.usda.gov/results.