South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:22 - Agribusiness bonding and lending programs
Chapter 12:22:02 - Value added agribusiness relending program
Section 12:22:02:01 - Definitions

(1) "Agency," the Rural Business Development Program office in the South Dakota state office of the United States Department of Agriculture, or its successor;

(2) "Agricultural production," the cultivation, production, growing, raising, feeding, housing, breeding, hatching, or managing of crops, plants, animals, or birds, either for fiber, food for human consumption, or livestock feed;

(3) "Applicant," a natural person, partnership, limited liability partnership, joint venture, corporation, limited liability company, or other entity that has completed a VAARP application for a loan from the VAARP fund;

(4) "Board," the board of directors of the South Dakota Value Added Finance Authority;

(5) "Borrower," an applicant who has been awarded a loan from the VAARP fund;

(6) "Equity," capital that has no guaranteed or mandatory return which must be paid out in any event, has no definite timetable for repayment of the capital investment, and may not be withdrawn at the contributor's option without the permission of the superior debt holders;

(7) "Federal discount rate," the discount rate established by the United States Federal Reserve Board of Governors;

(8) "IRP," the Intermediary Relending Program revolving loan fund created through an Intermediary Relending Program loan from the United States Department of Agriculture;

(9) "Preliminary design stage," that portion of the project associated with market research studies identifying the project scope and need, compilation of the business plan, written initial cost estimates, written site options and description, and the commitment of the regulated lender;

(10) "Prime rate," the New York prime rate of interest, as published in the "Money" section of the Wall Street Journal;

(11) "Rural area," all territory in South Dakota that, meets the United States Department of Agricultures definition of a rural area;

(12) "Total project costs," the direct costs associated with the purchase of land, necessary site development and improvements, construction or acquisition and remodeling of buildings and works necessary to the operation and protection of the project, purchase and installation of machinery and equipment, fees for services, approved in-kind contributions, and adequate financing of working capital;

(13) "VAARP," the value-added agribusiness relending program; and

(14) " VAFA," the South Dakota Value Added Finance Authority.