South Dakota is a shockingly great state to start a business; 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 aimed at connecting 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). See the program guidelines for more information.
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. See the guidelines for full eligibility requirements.
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. See the guidelines for full eligibility requirements.
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 $20,000,000, or for equipment upgrades over $2,000,000 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 $20,000,000 or for equipment modernization costing under $2,000,000. 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. See the application for full details and requirements.
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 $1,000,000 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.
