Jackson-Kadoka Economic Development Corporation
Incentives
Incentives
Please contact me for details on the exact incentive/financing package we can put together for you.
Project Financing
The state of South Dakota has two financing programs that you may be able to take advantage of, the first being the Revolving Economic Development Initiative (REDI) Fund loan program. The basics of the program are as follows:
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Designed to promote job creation in SD |
Available to start-up or expansion |
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3% interest |
Minimum 10% equity contribution required |
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Financing for fixed assets |
Up to 20 years amortization |
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5-year balloon payment |
Take out financing |
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$5,000-$10,000 per FTE created, REDI cannot account for more than 45% of the total project cost |
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The second funding program is the Economic Development Finance Authority (EDFA) bond program. The basics of this program are as follows.
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Long-Term fixed rate financing |
Competitive interest due to the state’s “A” rating by Standards and Poors |
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Provides access to public bond market |
Taxable and tax-exempt bonds available |
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Minimum 10% equity contribution required |
$5M maximum (80% loan-to-value on land/building, 75% on equipment) |
The Governor’s Office of Economic Development (GOED) staff is available to provide program information, consult with participating lenders and assist with application questions.
Please contact the GOED @ (605) 715-0013 for any finance program questions.
Workforce Development
Through our Workforce Development Program, companies have access to dollars to help train new and existing employees. The Governor’s Office of Economic Development will provide technical assistance to help develop Workforce Development Program application. Technical Assistance is provided to help identify approaches and ideas necessary to develop a successful project. As we progress through the due-diligence of your expansion the GOED is prepared to send you a proposal reserving workforce development dollars based on the number of full-time employees that you plan to hire, the wages and benefits you will be offering and training cost.
Tax Advantage
Kadoka’s biggest tax incentive is a combination of low tax rates and the absence of an income tax. South Dakota enacted a schedule that refunds sales/use tax and contractors excise tax at varying percentages based on the project size. The refund extends to the sales/use taxes paid by the contractor on tangible personal property (building materials) incorporated into the real estate. Note the refund does not apply to local sales tax.
The South Dakota Department of Revenue is available to provide assistance and information for you. Please contact Allison Jares at (605)773-3311
Jackson-Kadoka Economic Development Corporation
PO Box 71
Kadoka, SD 57543
(605) 488-0206
director@growkadoka.com
