The geographic boundaries of the Enterprise Community consists of a combined total of 1000 square miles, in Beadle and Spink counties in South Dakota. This includes the towns of Cavour, Doland, Frankfort, Hitchcock, Iroquois, Tulare and Yale.
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Youth Opportunity Livestock Loan Program Application
Youth Opportunity Livestock Loans
"It is an excellent opportunity for youth to get a start with livestock ownership, learn management skills and obtain a credit record."
BASEC's Project Goals
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Increase agricultural / livestock production in the BASEC area.
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Increase youth in agricultural development projects while youth gains knowledge and skills through active participation in raisin, caring for and marketing livestock.
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Increase partnerships / contacts with schools, FFA, 4-H, county extension agents and BASEC.
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Increase BASEC opportunities with families not yet reached.
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A long term goal is to help decrease youth out migration from the BASEC area.
Who is eligible to apply for the youth livestock loan program?
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8th, 9th, and 10th graders in the, Doland, Iroquois, and Tulare school districts are eligible. 8th, 9th,and 10th, graders that attend school elsewhere such as Huron, Hitchcock, Redfield and James Valley, must reside in the BASEC geographic boundaries to be eligible for this program.
Beadle County Townships: Banner, Barrett, Belle Prairie, Cavour, Clifton, Clyde, Custer, Fairfield, Foster, Grant, Iowa, Lake Byron, Liberty, Login, Milford, Pearl Creek, Richland, Valley.
Spink County Townships: Antelope, Belle Plaine, Belmont, Buffalo, Capitloa, Cornwall, Crandon, Frankfort, Garfield, Great Bend, Harmony, Lake, Lincoln, Prairie Center, Richland, Spring, Tulare, Union
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Livestock must be kept in the BASEC geographic boundaries.
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The loan shall have parent/guardian approval and a co-debtor
What are the program guidelines?
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Two active borrowers per family are allowed in this program.
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Loan funds may be used for foundation stock such as bred heifers, cows, cow/calf pairs bred gilts, sows or sow with pigs at side , ewe lambs, or ewes with lambs at side.
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The opportunity to participate in project with feeder stock is also a possibility. The feeder stock will be paid off when feeders are marketed, with option to purchase additional feeder livestock within one year.
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Foundation loans are to be no more than five years. Feeder loans are to be no more than three years in length, renewed each year.
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The maximum loan amounts are: Beef- $6,000.00; Swine-$2,000.00; Sheep- $2,500.0
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The loans have a low interest rate of 5%
What are my responsibilities?
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Livestock and offspring from the livestock you purchased must be clearly identified as they are considered collateral for the loan
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You must maintain the physical condition of the collateral.
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If you wish to sell, replace or substitute the livestock and/ or offspring from the purchased animals, authorization must be received from your loan supervisor prior to the sale. Once the sale has taken place you must return a copy of the bill of sale and the proceeds to BASEC.
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You must notify your loan supervisor as soon as possible if any of the secured stock should die.
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The livestock must remain in the BASEC area and within the location which is stated on the UCC-1 form and the promissory note. If the livestock are to be removed from their stated location, permission from the BASEC Loan Committee /BASEC Executive Director must be obtained.
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You will submit an annual report or any other income and expense records as requested by your project supervisor.
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You must remember that this is to be treated like any other type of loan. You have entered into a secured legal transaction.
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You are responsible for the credit that you have obtained!
How does the application process work?
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Loan applications can be found online CLICK HERE.
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January 15, 2008 is the deadline to apply for the 2007-2008 school year. BASEC reserves the right to reopen this application period should funds be available.
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All applications will be reviewed by the Youth Livestock Loan Committee along with a personal interview that includes committee, youth, parents/guardians and co-debtors. This is to ensure everyone is aware of loan application, commitments, and obligations.
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Financing decisions will be based on guidelines and program requirements being met. A written notification will be sent regarding approval.
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A credit check of youth and co-debtor will also be done.
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Your loan supervisor will be making contacts with you periodically and will be available for your questions and needs regarding this program.
CD Livestock
This BASEC program will involve the purchase of a certificate of deposit (CD) in an area lending institution (lending institution does not have to be located in the BASEC boundaries).
BASEC will purchase a CD and pledge it as collateral for a loan that will make possible the purchase of livestock. The actual loan dollars come from the lender.
No CD purchased for this purpose will exceed $50,000, and in no case will the CD represent more than 50% of the loan amount.
Arrangements will be negotiated on an individual basis with participating lending institutions, but general, the portion of the loan made by the lending institution will be made at market interest rates. The portion made based on the purchase of CD will be made at rates some what in excess of the CD interest rate paid, but below the conventional loan rate. The overall result will be a below market rate "blended" loan.
Example of Rates
A typical loan example would work as follows: Normally the lending institutions would lend BASEC's share of the loan out at 2% over one year CD rate(7%) giving the borrower the benefit of an overall reduced blended interest rate of about 9% (banks 50% at 11% and BASEC's 50% at 7% = 9%) *Please realize that these rates change frequently but the example illustrated is the concept of this program.
Once the lending institution has approved the proposed livestock application, it is then taken to the BASEC Board of Directors loan review meeting for approval. The Board meets every third Wednesday of the month.
Many of the area lending institutions have the BASEC's CD Livestock Application on hand but if not, call the BASEC office and one will be sent promptly.
Requirements for Applicants
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Applicant must be a resident of the BASEC area.
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Livestock must be located in the BASEC boundaries.
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Applicant must have a lender willing to participate in this loan.
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The applicant's lender will be responsible for creation and perfecting all security interests and insurance coverage, setting the interest rate, and terms of loan.
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Applicant must be willing to provide basec house hold financial information and update this information periodically
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Applicant must have adequate shelter, water and feed supply for livestock..
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Applicant must be willing to participate in the livestock management course, provided by another farm support agency, should the board of directors recommend.
Beadle and Spink Enterprise Community
PO Box 68, Yale South Dakota 57386
PHONE 605-599-2991
