South Dakota is a shockingly great state for business owners. With fantastic tax breaks and low costs, many entrepreneurs would be smart to consider this state as the home for their next venture. If you’re considering launching your next business in South Dakota, scroll through the funding options below. These South Dakota-specific grants and loans may help you get your next idea off the ground!
Department or Agency: South Dakota’s Governor’s Office of Economic Development
Loan or Grant title: Dakota Seeds
Dakota Seeds is an annual grant program to connect eligible businesses with funds to access paid interns in Science, Technology, Engineering, and Math (STEM) fields. Eligible companies must be involved in scientific research or STEM education, and the internship must provide a meaningful experience to advance the intern’s career. Companies are capped at five interns and are reimbursed at the end of the internship up to 50% of the salary paid, not exceeding $2,000 per intern per semester. Interns are limited to two consecutive terms (for example, spring and summer, or summer and fall).
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: GOED’s Workforce Development Program
The GOED Workforce Development Program enables South Dakota companies to grow by providing limited funds to help existing employees access job training. The program reimburses up to 50% of eligible training costs up to $500 per employee. To apply, South Dakota companies must be in one of the key industries identified by the Governor’s Office of Economic Development. Companies must also use training to grow the business and advance technical skills, and the trainees must earn at least $15/hour at the time the training begins.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Proof of Concept Program
The Proof of Concept program is designed to foster innovation and entrepreneurship in the state of South Dakota. The program offers grants of up to $25,000 for applicants to prove the feasibility of an innovation before bringing it to market. Entrepreneurs, South Dakota companies, and universities are encouraged to apply and must match at least 10% of the costs. Expenses eligible for funding include salaries (South Dakota non-principal employees only), materials and supplies, expert consultants, and technical feasibility and marketing studies. The business must commit to commercializing the venture in South Dakota.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Reinvestment Payment Program/South Dakota Jobs Program
The Reinvestment Payment Program is designed to support upgrade or expansion projects in South Dakota of over $20 million, or for equipment upgrades over $2 million that wouldn’t have been possible without the program funding. The South Dakota Jobs program supports businesses moving to or expanding in South Dakota and supports projects costing under $20 million or for equipment modernization costing under $2 million. Eligible projects include retail businesses serving individual consumers, housing, health care facilities, energy transportation/transmission, and more. Applications must be received within 90 days after construction begins.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED) and the South Dakota Economic Development Financing Authority
Loan or Grant title: South Dakota’s Revolving Economic Development and Initiative (REDI)
The South Dakota Revolving Economic Development and Initiative (REDI) offers low-interest loans to South Dakota businesses needing funding. REDI loans are open to startups and other businesses expanding or relocating to South Dakota. Loans require a 10% minimum equity contribution, but otherwise can cover up to 45% of total project costs. Eligible uses include land purchase, site improvement, new construction or renovation, and purchasing and/or installing machinery or equipment.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: South Dakota Works
The South Dakota Works program offers loans of less than $1 Lea to businesses in need of operating capital. The program offers loans that must be met 1:1 by another lending institution, which would be considered the lead lender. Companies must also provide a 10% equity investment. Eligible uses for loans include building construction, general operating funds, and buying equipment, inventory, or real estate.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Value Added Agribusiness Relending Program
The Value Added Agribusiness Relending Program gives direct loans to eligible agribusinesses in South Dakota. Businesses can get funds equal to 75% of their eligible project costs, up to $250,000. Loans have a 10-year repayment period and low, fixed interest rates.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Pooled Bond Financing
South Dakota’s Pooled Bond Financing program gives businesses access to the public bond market to help finance projects related to ag or industrial processing, distribution, and manufacturing. The program supports capital-intensive projects with a minimum budget of $1 million. Businesses can get long-term, fixed-rate financing for land, buildings, machinery, equipment, and installation expenses.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Conduit Bond Financing
South Dakota’s Conduit Bond Financing program gives tax-exempt bonds to qualifying beginning farmers, ag processing businesses, or businesses racking up solid waste disposal expenses for livestock projects.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: South Dakota Microloan/Microloan Express
South Dakota’s Microloan programs give working capital loans to small South Dakota businesses in need of capital. Loans range from $1,000 to $100,000 and carry 3% interest rates. Half of the total financing must come from a bank, credit union, or local regional revolving loan fund.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Rural Development Ag Loan Participation
Under the Rural Development Ag Loan Participation program, South Dakota farming and ranching businesses can partner with their local bank to get low-interest loans. Eligible businesses can get up to $500,000 to finance facility improvements or equipment purchases.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Livestock Loan Participation
The Livestock Loan Participation program gives South Dakota farming and ranching businesses low-interest loans from their local banks. Eligible businesses can get up to $200,000 to purchase livestock for their operations.
Department or Agency: South Dakota’s Governor’s Office of Economic Development (GOED)
Loan or Grant title: Value Added Sub Fund
The Value Added Sub Fund helps businesses finance their Feasibility studies for ag development technology. The loan has a 0% interest rate and a flexible repayment period.
