South Dakota Administrative Rules
Title 68 - Tourism and State Development
Article 68:01 - Economic development finance authority
Chapter 68:01:02 - APEX loan program
Section 68:01:02:08 - Factors for action by authority

Universal Citation: SD Admin Rules 68:01:02:08

Current through Register Vol. 51, page 43, September 23, 2024

The authority, when making a decision on an application, may, in addition to other factors necessary to make a sound loan decision, consider the following:

(1) Program impact factors:

(a) Population of the community where the project is to be located;

(b) Amount of agricultural products used;

(c) Number of jobs created for low-income persons and displaced farm families;

(d) Amount of loan requested;

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

(f) Competitive effect on existing businesses;

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

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

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

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

(k) Potential for creating quality jobs and growth of those jobs;

(l) Payroll pay structure; and

(m) Employee benefit package;

(2) Business feasibility factors:

(a) The potential success of the business;

(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 authority shall consider the following:
(i) The amount of the loan;

(ii)The economic feasibility of the project and product;

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

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

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

(vi) The availability of necessary public utilities;

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

(e) The terms and conditions of the loan and their compatibility with the needs of the business and APEX; and

(f) The availability of sufficient unencumbered collateral to secure the interests of APEX.

General Authority: SDCL 1-16B-14(4).

Law Implemented: SDCL 1-16B-37, 1-16B-44.

Disclaimer: These regulations may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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