PIERRE, S.D. (KELO) — One of state government’s business-loan programs is some $35,000 lighter in the pocket.

Directors of the South Dakota Economic Development Finance Authority agreed Wednesday to take a loss on a loan made to a Kadoka business.

The authority in 2013 loaned $151,500 through its agricultural processing and export program to Fromm’s Hardware and Plumbing.

The company eventually went out of business and the owner filed for chapter 7 bankruptcy.

The business still owed state government $106,575.30 on the loan.

The state board thought it had a deal to sell the property for $225,000 but that didn’t go through. A second attempt to sell brought a successful bid of $105,000.

Of that, the authority will receive $69,825, according to Ann Gesick-Johnson from the Governor’s Office of Economic Development.