Financial IncentivesThe REVOLVING LOAN FUND was created to assist new and existing businesses in the downtown Aberdeen area.
The Aberdeen Business Improvement District has received funding from the Department of Housing and Urban Development (HUD) to assist new and existing businesses in the core area.
Loans may be used for acquiring land, buildings, making renovations, machinery and equipment, capital improvements, leasehold improvements, and reasonable contingencies.
The REVOLVING LOAN FUND is being administered by NECOG Development Corporation and applications will be reviewed at the Boards normal monthly meeting.
NECOG-DC Board meets monthly and complete applications must be into the NECOG office at least 10 days prior to the date of that month’s board meeting for consideration. This Board makes all decisions (including financing terms) regarding the applications.
There are some fees involved with the loan that you may be responsible for including: attorney fees, title insurance fees (if applicable), filing fees, and a 1.0% loan origination fee. These fees will be due at the time of loan closing, if a loan is approved. You will be required to provide $25.00 at the time the application is received by the RLF Manager for a credit check.
All applications need to be completed in full and the applicant is required to provide 10% equity into the project. The RLF Manager of the NECOG Development Corporation will be able to assist the applicant through the application process.
Please read the application materials and the checklist carefully before submitting an application. All required documents must be included with the application. If any of the required items are missing, the application will be considered incomplete and will not be reviewed by the NECOG-DC Board until completed.
If you require assistance in completing the 3-years of financial projections and business plan please contact Kelly Weaver or Carla Benson at the Small Business Development Center in Aberdeen. Their phone number is (605) 626-2565.
No applicant may be denied a loan on the basis of race, color, national origin, religion, age handicap, or sex.
Download the Application
If you have any questions don't hesitate to contact
Rich R. Galbraith
Revolving Loan Fund Manager
Northeast Council of Governments
P.O. Box 1985
Aberdeen, SD 57402-1985
Phone (605) 626-2595
Fax (605) 626-2975
20% TAX CREDIT
The federal government created this incentive in 1976 to encourage historical building rehabilitation. The federal government offers a 20% credit (for historic and architecturally significant buildings) and a 10% credit (for nonresidential, non historic buildings built before 1936; a mixed-use project, however, can take the 10% credit on the commercial portion of the rehab.)
DEADWOOD FUND GRANT
If your property qualifies as a contributing historic building, any renovation project is eligible to apply through the State Preservation office.
The Deadwood Fund Program, under this historic preservation program, the grants ranging from $1,000 to $25,000 will be awarded for projects that retain, restore, or rehabilitate historic buildings, structures, and archaeological sites in South Dakota for residential, commercial, or public purposes.
The Deadwood Fund program is funded by a portion of the gambling revenue generated in Deadwood, SD.
All projects must meet The Secretary of the Interior's Standards for the Treatment of Historic Properties. These standards are neither technical nor prescriptive; instead they promote responsible preservation practices that help protect our nation's irreplaceable cultural resources.
The purpose of the fund is to make loans and grants to purchase, restore, or develop historic South Dakota properties for residential, commercial, or public purposes.
Individuals, organizations, and public agencies sponsoring projects to retain, restore or rehabilitate historic buildings, structures or sites by returning them to state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the properties which are significant to their historic, architectural, and cultural values and meeting the grant criteria are eligible to apply for a Deadwood Fund grant.
In all instances, the burden of proving that funds will support work in historic preservation lies with the applicant. Professional guidance by someone skilled in the retention, rehabilitation, and restoration of historic properties may be needed to successfully plan, implement, and complete a project. Evaluation criteria will be used as guidelines to rank each project. A project meeting all eligibility criteria does not guarantee that it will receive a grant award.
For more information:
State Historic Preservation Office
SD State Historical Society
Dept of Tourism and State Development
900 Governors Drive
Pierre, SD 57501-2217
Telephone:605-773-3458
Fax: 605-773-6041
PRESERVE SOUTH DAKOTA LOW INTEREST LOAN PROGRAM
"Preserve South Dakota operates a statewide revolving loan fund available to members prepared to undertake quality rehabilitation work on their home or commercial building. These loans are offered at a low interest rate in order to encourage preservation. To date, over $500,000 has been loaned."
For more information contact:
Preserve South Dakota
351 4th Street
Scotland, SD 57059
Office: (605) 583-4509
TAX INCREMENT FINANCING (TIF)
Aberdeen's downtown district is also a TIF district.
Tax increment financing (TIF) is a redevelopment tool authorized by state statute to help revitalize certain areas by eliminating certain blighting conditions and instituting conservation measures in order to encourage private investment and to enhance the tax base. At the time the TIF project is approved, current property values are "frozen" and remains at the level for the term of the TIF.
But property values are not really frozen. The governmental entities continue to get their respective portions of tax for the term of the district even though the property has increased in value. As the value of the property increases, the property owner pays the frozen amount plus the increased amount due to improvements. The difference between the frozen amount and the increased amount is used to repay the bonds. Once the bonds are paid off, the governments will receive the full, increased value of the district.
TIF's also provide economic incentives for new businesses and industries interested in relocating within the district.
Guidelines and Criteria for TIF's in Aberdeen as set forth by Planning and Zoning.
Tax Increment Financing (TIF) Evaluation Criteria (State Statutes via the WWW)
All Sections of SDCL are incorporated into this criteria by this reference; 11-09-01 to 11-09-47.
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