From a bakery to a day care, the ITC Rural Economic Development Inc. (REDI) program has helped businesses get their start in small South Dakota communities since 2000.
“When you live in small communities, any development is vital,” says Tracy Bandemer, CEO/GM of Interstate Telecommunications Cooperative, a SDN Communications member-owner company headquartered in Clear Lake. “Every little loan can help our community.”
The ITC REDI program is a nonprofit arm of ITC, which serves 17 counties in northeastern South Dakota and Western Minnesota providing video, landline and fiber internet services. REDI partners with Grow SD, a statewide nonprofit organization that provides programs and loans to advance housing, community and economic growth.
“We basically provide low interest loans in partnership with Grow SD,” said Amy Bjerke of ITC.
In some situations, these potential business owners have approached a bank and been denied. Other times, they come directly to the ITC REDI program.
“Our loans have a risk to them ... some of them they won’t be able to get funding from the bank. But it’s a good fit for the community,” Bandemer said.
That’s when the ITC REDI program and Grow SD step in.
“They have to do an application, and Grow SD does all of the background research, credit histories and the due diligence to make sure they are a good loan applicant,” Bjerke said.
The ITC Board of Directors then vote on the applications, and if approved, move forward with the loans. The ITC REDI program has issued $3 million in loans to 36 recipients since its start 24 years ago, Bjerke said. Recipients have included a bakery in Clear Lake, a restaurant in Webster, an apartment complex in Clear Lake, an electrical business and even a butcher shop.
“It’s been quite a range,” Bjerke said. But they all have one thing in common — they strengthen their communities by bringing business to the town.
“This is another opportunity to pursue a dream. Banks aren’t as easy or as willing to loan money, where we are more willing to step in and say, ‘This is a good fit for the community,’“ Bjerke saida. “We’re more about the community development … Getting projects to better the area.”
One of the most recent ITC REDI loans went to a day care in Clear Lake. The Ages and Stages Daycare received $105,000 — a sum split between ITC REDI and Grow SD.
“That’s all you ever hear about is the need for day care,” Bjerke said. “So this was a great opportunity to provide that. Hopefully they’ll be able to grow and expand their day care.”
Learn more about the ITC REDI program at www.itc-web.com
