U.S. Department of Commerce Invests $800,000 to Capitalize a Revolving Loan Fund and Support Small Businesses in South Dakota

WASHINGTON – Today, the U.S. Department of Commerce’s Economic Development Administration (EDA) is awarding an $800,000 grant to the Northeast Council of Governments Development Corporation in Aberdeen, South Dakota, to capitalize and administer a Revolving Loan Fund (RLF) serving small businesses in 12 counties in Northeast South Dakota.

The RLF will support businesses facing obstacles in obtaining traditional financing to help them grow and create new jobs and economic opportunities. This EDA grant will be matched with $200,000 in local funds and is expected to create or retain 20 jobs and generate $2 million in private investment, according to grantee estimates.

Since the inception of EDA's RLF program, over $1.3 Billion has been invested into over 45,000 loans to small-and-medium-sized businesses, creating or saving nearly 700,000 jobs.

“The Economic Development Administration works closely with local communities to support place-based economic growth,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “This Revolving Loan Fund will provide the capital that small businesses and entrepreneurs in Northeast South Dakota need to grow and thrive.”

This project was made possible by the regional planning efforts led by the Northeast Council of Governments (NECOG). EDA funds NECOG to bring together the public and private sectors to create an economic development roadmap to strengthen the regional economy, support private capital investment and create jobs. The project will cover Beadle, Brown, Campbell, Day, Edmunds, Faulk, Hand, Marshall, McPherson, Potter, Spink, and Walworth counties.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation’s regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.