State boards approved two loans, one grant and four bonds Wednesday worth a combined $87 million.
The Board of Economic Development and Economic Development Finance Authority approved the assistance, which will be administered by the Governor’s Office of Economic Development. The office announced the approvals in a news release. The state’s help will support private projects totaling $236 million in costs and creating a projected 119 jobs.
A $6.75 million Revolving Economic Development Initiative (REDI) loan was awarded to JH Investment in Vermillion. Masaba Inc., a mining, construction and aggregate industries manufacturer, will use the loan to construct a new fabrication facility. Both companies are registered in public corporate documents to Jerad Higman, the CEO of Masaba. The REDI Fund offers low-interest loans to promote economic growth and job creation, covering up to 45% of a project’s cost. Projects can include land purchases, site improvements, building costs, or machinery and equipment purchases.
Masaba Inc. was also approved for a Reinvestment Payment Program grant of up to $315,000. The program offers grants to companies to offset the upfront costs associated with relocating or expanding operations, or upgrading equipment.
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An SD Works Loan of $106,172 was awarded to the Sweat Zone gym in Aberdeen. The loan will be used for building and equipment for the new company. The SD Works program offers loans to businesses for construction, buying equipment, and general expenses.
Four companies were authorized for Livestock Nutrient Management Bonds of up to $20 million each to construct plants that convert livestock manure into renewable natural gas.
The four companies are:
- Brookings Biogas, of Hamlin and Brookings counties.
- Lakeside Biogas, of Roberts County.
- Five Shots RNG, of Lincoln County.
- Moccasin Creek RNG, of Brown County.
The Livestock Nutrient Management Bond program issues tax-exempt bonds to purchasers — typically local banks — who set the repayment terms and interest rates for the company borrowing the money.