State board approves $3.5 million in loans to businesses

The sun sets over Capitol Lake in Pierre on Dec. 5, 2023. (Makenzie Huber/South Dakota Searchlight)

A state government board recently approved three loans to businesses totaling $3.5 million.

The Board of Economic Development approved the loans, which will be administered by the Governor’s Office of Economic Development.

“This financing allows two more local businesses the ability to grow in South Dakota,” said Jesse Fonkert, the office’s deputy commissioner, in a news release.

The board awarded Dakota Automation Properties LLC, of Watertown, a $1.97 million Revolving Economic Development and Initiative (REDI) loan and a $982,519 South Dakota Works loan. The loans will help the business construct a new building to increase capacity. The company designs and installs automated industrial equipment and provides training and support.

The board awarded Borns Group Inc., of Aberdeen, a $530,000 South Dakota Works loan for working capital. Borns Group is a professional mailing and marketing business.

The South Dakota Works program offers loans to businesses for construction, equipment and general expenses. The loans are typically less than $1 million with a 3% interest rate. The board has awarded 10 loans totaling $6.49 million from the program so far this year.

The REDI Fund offers low-interest loans to promote economic growth and job creation, covering up to 45% of a project’s cost. Projects can include land purchases, site improvements, building costs, or machinery and equipment purchases. The board has awarded six REDI Fund loans this year totaling $9.71 million.

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