3 Jan 2023
The REED Fund recently closed a loan in Summit, SD for a manufacturing company. Skyview Construction is going to be building homes using metal studs and trusses that are manufactured in-house. The REED Fund helped finance new equipment that will be used to make the products.
American Bank and Trust lined up financing for the required inventory. The REED fund partnered with them in order to complete the financing package. The fund provided Skyview Construction with a loan for two crucial pieces of equipment for the housing project: the machine that will form the steel members for the rafters, floor trusses, and walls, and the rotating telehandler that will be used to place the components on-site.
The first project for Skyview Construction is building twin homes. Next, they will be constructing single-family homes. In the future, they may work on adding shops and storage units.
Skyview Construction was introduced to the REED Fund when they were discussing the power needs for their shop with Dave Eide. The REED Fund is made up of and represents 26 electric member cooperatives on the eastern side of South Dakota and southwest Minnesota. Dave Eide is the General Manager of the Codington-Clark Electric Cooperative.
“We’re excited to be working with Skyview Construction on this project,” Eide said. “I can’t think of a better fit for a REED loan. The REED Fund was implemented for startup businesses just like this. We’re with Skyview Construction 100 percent and looking forward to seeing their impact on our community.”
From the start, Skyview Construction wanted to build components offsite for this project for assembly on the job. Gerry Adolph of Skyview Construction said that this approach would not only help in providing a climate-controlled and safe environment for their workers, but would also ensure a high level of accuracy in the build through automation.
They had planned to build with wood, but there was a multimillion-dollar cost and several-year lead time that came with that. Their research eventually led them to light gauge steel.
“Steel is lighter, stronger, straighter, and sustainable,” said Mike Adolph of Skyview Construction. “It has been used in commercial builds for years and is now being used in residential construction.”
Gerry Adolph said that the REED Fund was professional, friendly, and quick to respond. Adolph was directly assisted by Angie Neises of the REED Fund.
“Working with Angie to pull together all of the documents required for the loan package was like working with a professional friend,” Adolph said. “She answered our questions promptly in a way we could understand.”
The REED Fund ultimately helped tremendously in getting Skyview Construction’s project started. The Summit community can look forward to new housing developments coming their way.
“The loan terms we were able to get from the REED Fund helped to give us the breathing room we needed to get our project off the ground,” Adolph said. “We look forward to helping meet the housing needs for the communities in northeast South Dakota next Spring.”