When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following:

1. (1) Project impact factors:

   1. (a) Economic impact of primary jobs created or retained;
   2. (b) Net economic effect of increasing or stabilizing the economy on the community, area, and state;
   3. (c) Competitive effect on existing businesses;
   4. (d) Support of the public entities of the community and area;
   5. (e) The amount of the owner's equity contributed to the project;
   6. (f) The effect of the project on the environment, health, and safety of the people in the community, area, and state;
   7. (g) Compatibility with economic development plans of the area and state;
   8. (h) Type of business;
   9. (i) Payroll, pay structure, and employee benefit structure;
   10. (j) Number of jobs created or retained; and
   11. (k) In the case of multifamily housing, the impact of the project on the availability of workforce within the project area;

2. (2) Business feasibility factors:

   1. (a) The potential success of the business and the potential for creating quality jobs and the growth of those jobs;
   2. (b) The character, experience, management record, and background of the applicant;

   3. (c) The capacity of the applicant to repay the loan. In determining the capacity of the applicant, the board shall consider the following:

      1. (i) The amount of the loan;
      2. (ii) The economic feasibility of the project;
      3. (iii) The ability of the applicant to service the debt from cash flow of operations, capital, or collateral;
      4. (iv) The financial status of the project, business plan, and applicant;
      5. (v) The satisfaction of engineering, legal, and environmental regulations; and
      6. (vi) The availability of necessary public utilities;
   4. (d) The total capitalization of the project, which includes all capitalization subordinated to the REDI fund;
   5. (e) The amount, terms, and conditions of the loan and their compatibility with the needs of the business and the REDI fund; and
   6. (f) The availability of sufficient collateral to secure the interests of the REDI fund.

Source: 34 SDR 68, effective September 13, 2007; 46 SDR 123, effective May 12, 2020.

General Authority: SDCL 1-16G-5 , 1-16G-8(8).

Law Implemented: SDCL 1-16G-5 , 1-16G-8(8).

Prior versions effective: 2007-09-13.