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.

BASEC has made over 106  low interest business loans from 1996 to 2005, making access to

capital easier and projects more feasible in the Enterprise Community”.

Funding Opportunities for the following business related projects:                

• Purchase of buildings

• Purchase of commercial lots

• Purchase of equipment

• Working capital

• Construction costs

• Business expansion

• Repairs                                                                       

• New business start-ups

• Technical assistance

• Business modernization

 

• BASEC has several loan programs utilizing    various funding sources such as USDA’s Intermediary Relending Program and the Rural Business Enterprise Grant Program.  Additionally, BASEC has developed its own revolving loan program utilizing the initial Social Service Block Grant from the Enterprise Community Initiative. 

• BASEC offers direct loans to borrowers and or certificate of deposits (CD) pledges toward the business loan at the borrower’s lending agency. 

• BASEC is flexible in financing business projects. Following are some of the program guidelines for eligibility that BASEC must abide by:

• The loan funds must be used for the purchase, start-up, or expansion of a business within the BASEC geographic area.  The communities eligible are Cavour, Yale, and a portion of Iroquois in Beadle County and    Tulare, Doland, and Frankfort in Spink County. 

• Direct loans from BASEC typically will not exceed $150,000 maximum or 75% of the total project cost.  Currently 6% is the interest rate set by the BASEC Board of Directors.

• Applicant must show repayment ability. 

•  Applicant must be willing to participate in business management consulting with    the South Dakota Small Business Development Center or similar agency. 

• Because of the various funding sources, there may be other program specifics regarding eligible projects.  BASEC staff will assist in determining what funding source would be appropriate for your business project. 

• Typically, BASEC funds cannot be used    to refinance business loans but there are  a few exceptions allowed by USDA program guidelines. 

• The Board of Directors meet the 3rd Wednesday of every month.  BASEC Board of Directors make the determinations for loan approval. 

• Completed application packets must be in the BASEC office 10 days prior to the board meetings. 

• Contact the BASEC office for an application and program details. 

• This BASEC program involves the purchase of a certificate of deposit (CD) at the applicant’s lending agency.  BASEC’s CD will be pledged as   collateral for a business loan that will make possible for business start-up or expansion. The actual loan dollars come from the lender.

• No CD purchased for this purpose will exceed $50,000 per business. The CD will never represent more than 50% of the loan amount. 

• Arrangements will be made with the lending agency but in general the portion of the loan made by the lending agency will be made at market interest rates and the portion made based on the purchase of BASEC’s CD will be made at rates somewhat  in excess of the interest rate paid on the CD but below the conventional loan rate.  The overall result will be a below market rate “blended” loan.

• Example of Rates:  A typical loan would work as follows:  normally the lending agency would lend BASEC’s share of the loan out at 2% over one year’s 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.

Beadle and Spink Enterprise Community

PO Box 68, Yale South Dakota 57386

PHONE 605-599-2991   FAX 605-599-2992 

TOLL FREE 866-599-2991  E-MAIL basec@santel.net