The board shall establish the standard interest rate for REDI loans from time-to-time and publish the rates on the GOED website. The board may deviate from the standard interest rate based on the economic impact of the project, nature and extent of collateral, risk, the amortization period of the loan, and other prudent lending criteria.

1. (1) State and national market interest rates;
2. (2) State and national economic conditions;
3. (3) The solvency and balance of the REDI fund; and

4. (4) Other economic or business information necessary to fulfill the board mission to promote economic development in this state.

   The borrower is responsible for arranging other financing when the loan is due. If the borrower is unable to obtain financing at reasonable rates and upon reasonable terms, the borrower may apply, before the loan due date, for an extension of the loan at an interest rate and for a time period established by the board. The borrower shall submit an application for extension by the monthly loan application deadline prior to the loan maturity date.

The board shall consider the following when establishing the standard interest rate:

Source: 52 SDR 49, effective November 17, 2025 .

General Authority: SDCL 1-16G-5 , 1-16G-8 (7)(10).

Law Implemented: SDCL 1-16G-5 .