Current Rates

Revolving Loan Funds

Funding Growth for Rural Small Businesses

Revolving Loan Funds (RLF), which are not part of the SBA program, are designed to provide rural businesses in South Dakota with flexible financing options with affordable interest rates. This type of small business financing not only provides growth opportunities to small businesses, but is also an attractive lending option for participant lenders, as Ally Dakota Development will share the credit risk.

Terms & Requirements

  • Eligible Uses
    RLF financing can be used for fixed assets, equipment, inventory or working capital.
  • Eligible Businesses
    Any new or expanding for-profit or non-profit South Dakota business is eligible.
  • Maximum Amount
    As much as 30-40% of a project can be financed, depending on the availability of funds, loan maximum of $250,000.
  • Economic Development Criteria
    While there aren’t specific job creation/retention count requirements, the Ally Dakota Development Board will evaluate projects based on the economic impact for South Dakota.
  • Terms
    Loan terms are available for 20 years or less with flexible amortization options. Interest rates are set by the Ally Dakota Development Board and generally fall between 6.25% – 7.25%.
  • Loan Structure
    10% equity injection from borrower and the balance will be financing through Ally Dakota Development and the participating lender.
  • Fees
    There is a one time 1.5% loan origination fee.
  • Collateral
    This varies on a case by case basis and Ally Dakota Development generally shares the first position on collateral, unless other security is provided.
  • Service area
    Businesses must reside in the following South Dakota counties: Brookings, Clark, Codington, Deuel, Grant, Hamlin, Kingsbury, Lake, Miner, Moody, and Roberts.

For more information about Revolving Loan Fund options, please contact Ally Dakota Development.

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