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Agribusiness Bond Program

The purpose of the Agri Business Bonding Program is to assist in the development and expansion of agricultural and business enterprises with the State of South Dakota. The Value Added Finance Authority (the “Authority:” issues tax-exempt bonds and/or notes which the borrower may sell and use the proceeds to finance qualified projects that meet state and federal requirements. The borrower pays the interest and principal directly back to the purchaser or Trustee.

How It Works

The program enables agricultural businesses involved in manufacturing, including ag processing, to save on interest by using federally tax-exempt bonds for up to $10 million.

Use of Funds

Fixed assets

Terms

Bond purchaser, usually the lender, sets rates and terms

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