Bond Financing

Bond Financing Financing For For-Profit Businesses For more capital-intensive projects, GOED offers a pooled bond program through the Economic Development Finance Authority (EDFA). The Economic Development Finance Authority prides itself on maintaining its “AA” rating by Standard and Poor’s, and as a result, can offer lower interest rates to borrowers. Bonds can be issued individually or pooled together to help lower the cost of the issuance. The program is open to all for-profit businesses that are engaged in industrial operations, ag processing or manufacturing. How It Works Eligible Borrowers Stand-Alone Issuance How It Works Bonds can be either taxable or tax-exempt. To qualify for tax-exempt financing, the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80% of new construction or purchase an existing building, and 75% of new equipment costs, with no greater than 25% of the bond proceeds being used for ancillary activities such as office or inventory space. Eligible Borrowers All for-profit businesses that are engaged operating an industrial, ag processing or manufacturing business may apply for bond financing through the South Dakota Economic Development Finance Authority. Stand-Alone Issuance Individuals may also apply for Stand-Alone Bond Issuances when t