Financing Available: $200,000 – max of $250,000 with unanimous approval of SEDC Board
35% to 40% of Total Project Costs
Multi- purpose structures - 40%
Single purpose structures – 35%
Use of Loan Proceeds: Purchase land and purchase or construct building
Term of Loan: Not more than 20 years; preferably 15 years or less
Rate of Interest: 2% below bank lender’s rate, floor of 2%; adjust when bank rate adjusts
Down Payment: 10% to 15% (multi-purpose versus single purpose)
Typical Structure: 50% financed by Bank Lender (1st Lien Position)
40% financed by SEDC R/E RLF (2nd Lien Position)
10% financed by Equity Injection
Application Deadline: Application deadline is the first Wednesday of each month.  
Collateral: 2nd Lien on Project Real Estate; Subordinate only to Bank Lender;
90% LTV for multi-purpose buildings; 85% LTV for single purpose buildings
Cash Flow Requirements: DSCR of at least 1.2X, after all debt service and distributions, for two prior fiscal years
Guarantees: Corporate and/or Personal Guaranty required on all loans.
Eligible Businesses: Same as SBA requirements; Applicant businesses must have been operating for at least two years.
Ineligible Businesses: Non-profit, consumer and marketing coops, floor plans, gambling concerns, any concern involved in speculation.
Area of Operation: Generally includes Buena Vista, Cherokee, Clay, Crawford, Dickison, Ida, Lyon, Monona, O’Brien, Osceola, Plymouth, Sioux, Woodbury counties in Iowa; Dakota and Dixon counties in Nebraska; Union and Clay counties in South Dakota.   
Job Creation Criteria: Preferred, but not required
Fees: Processing Fee:  one-time fee of 1% of RLF loan
Servicing Fee:  annual fee of ½% of declining RLF balance
Closing Costs are responsibility of Borrower.