GOED shall, on behalf of the board with respect to loans:

1. (1) Perform the administrative functions of the creation, processing, and review of loan applications, including the financial status of an applicant, prior to board consideration;
2. (2) Prepare and negotiate loan commitment letters and loan agreements with a borrower following the board's approval of a loan;
3. (3) Add collateral requirements or co-borrowers to conform to the circumstances of the borrower and the loan at the time of loan closing;
4. (4) Add or remove guarantors at the time of loan closing based on applicable board policy with respect to a guarantor-owner's interest in the project;
5. (5) Consent to immaterial variances in total project costs or financing terms from other funding sources in connection with loan closing;

6. (6) Close and fund a loan made pursuant to this chapter in a principal amount up to five percent greater than originally approved by the board, subject to the following restrictions:

   1. (a) The borrower documents specific, increased project costs incurred between loan approval and loan closing;
   2. (b) The increase in total project cost is not due to the borrower's decision to enlarge the scope of the project or its business materially from what was presented in its application;
   3. (c) The increased loan amount does not increase the percentage of the total project cost funded by the loan;
   4. (d) All other lenders agree to increase their respective funding for the project on the same basis; and
   5. (e) The board resolution approving the loan did not revoke or specifically limit GOED's authority under this subdivision;
7. (7) Review the financial status of an applicant or borrower;
8. (8) Perform loan servicing after loan closing and other functions necessary to expedite and assist it in the performance of its administration of loans on behalf of the board; and

9. (9) Allow a partial lien release or substitution of collateral for a loan, if requested in connection with the disposition of real or personal property collateral made in a borrower's normal course of business after loan closing.

   Notwithstanding any assurance, guarantee, communication, or representation made to the contrary, there is no commitment of the REDI fund without specific authorization by the board. Only the board may make an award from the REDI fund to an applicant.

Source: 34 SDR 68, effective September 13, 2007 ; 52 SDR 49, effective November 17, 2025 .

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

Law Implemented: SDCL 1-16G-5 .

Prior versions effective: 2007-09-13.