South Dakota Governor Dennis Daugaard says he expects to hear from the federal government about a state-funded Small Business Investment Company license.
Daugaard says that state-sponsored company will provide investments in early stage startups in South Dakota. The company is called Enterprise 605.
Daugaard says it’s a source of dollars will give fledgling South Dakota companies some extra help.
“And to early stage companies who started up a little while back, they’ve gone to their friends and family for financing. Now they’ve used up that money and they need another infusion of equity. Here comes the South Dakota Equity Fund," Daugaard says. "That will help continue their funding and hopefully get them up to commercial stage profitability. Then everybody wins.”
He says the company already has $10 million dollars to work with.
Daugaard says the state should receive the license within the year.
He says they applied for the license in December, but the change in administration has slowed the application process down.