PIERRE, S.D. (KELO) — A Sioux Falls-based business has received approval for a $3 million government-funded loan.
The South Dakota Board of Economic Development okayed the financing Wednesday for EBC Holdings, doing business as Engineered Truss Systems. The loan is for the company’s Brandon location.
The funding, known as SD WORKS, originated from the U.S. Department of Treasury’s State Small Business Credit Initiative that was reauthorized and expanded by Congress as part of the American Rescue Plan.
The Governor’s Office of Economic Development administers South Dakota’s part of the federal program, with the state board deciding whether to make the loans.
The $3 million was the second-largest amount ever loaned from South Dakota’s WORKS program.
According to GOED’s website, “The WORKS program can finance up to $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include startup costs, working capital, payroll and construction on new buildings.”
Most SD WORKS loans have been for less than $1 million, but GOED reports also show a half-dozen previous SD WORKS loans were in excess of the $1 million ceiling:
2021 — Albany Farms, Belle Fourche $1,350,000
2017 – Gage Brothers Concrete Products, Sioux Falls $3,000,000
2016 – Harbor Group Investments (Interstates Control Systems), Sioux Falls $1,613,000
2015 – Shoemaker Properties, Webster $1,608,375
2014 – North Brooks (now Den-Wil Hospitality), Brookings $3,500,000
2012 – Sturgis Healthcare, Sturgis $1,100,000
Four were for $1 million: Vantage Point Solutions, Mitchell (2017); Vance Thompson Vision Clinic, Sioux Falls (2013); River Greenway Investments, Sioux Falls (2012); and Pepper Entertainment, Sioux Falls (2012).
The state board has a rule for its main REDI business-loan program that any loan request in excess of $1 million requires a two-thirds majority vote to grant a waiver. But, according to Sarah Ebeling, GOED’s communications coordinator, that doesn’t apply to the SD WORKS program.
“Going above the soft-cap does not require special board action,” she said.