Incentives

The state’s CDBG program is funded through an annual formula allocation from the US Department of Housing and Urban Development (HUD). The program allows the state to fund a variety of different projects in small cities and rural areas. All projects must meet one of HUD’s national objectives, with the primary objective to benefit people of low-moderate income (LMI.)

Community Development Block Grant (CDBG) Program:

• Provides matching grants to local governments (incorporated municipalities/counties)
• Primarily benefits low-and moderate-income persons
• Projects must meet federal requirements
• Environmental review must be complete
• Local Planning Districts must administer CDBG awards
• Can be utilized for workforce development training and community infrastructure needs

For more information:

• Visit the South Dakota Governor's Office of Economic Development Website
• Contact Planning & Development District III (Yankton)
  • Phone: 605-665-4408
  • E-mail: districtiii@districtiii.org

Dakota Seeds is an innovative internship program that connects students with employers as a way to help fill temporary workforce needs and establish a pipeline for future permanent employment. Qualifying businesses can receive matching funds up to $2,000 per intern for internships in the Science, Technology, Engineering and Math (STEM) fields, as well as in manufacturing and accounting.

Visit the South Dakota Governor's Office of Economic Development website for more information about the Dakota Seeds program.

Learn more about the program on the South Dakota Governor's Office of Economic Development website.

This program provides matching grants to assist in funding equipment and training needs, new staff, or to elevate existing part-time staff, for the purpose of developing or expanding local and community economic development programs.  Economic Development Partnership Grants may also be used to commence or replenish local revolving loan funds for the purpose of developing or expanding housing, community development, and economic development programs.

Economic Development Partnership Program:

• Provides matching grants to assist in funding equipment and training needs, new staff, or to elevate existing part-time staff, for the purpose of developing or expanding local and community development programs
• Requires a 1:1 match
• May be used to commence or replenish local revolving loan funds
• Eligible for any nonprofit development corporation, tribal government, municipality, county or other political subdivision of the state

Program administered by the Board of Economic Development

For more information,

• Visit the South Dakota Governor's Office of Economic Development Website
•  Contact Planning & Development District III located in Yankton
  • Phone: 605-665-4408
  • E-mail: districtiii@districtiii.org

This program provides grants to assist in funding the construction or reconstruction of infrastructure for the purpose of serving economic development projects.

Local Infrastructure Improvement Program:

• Provides grants to assist in funding the construction or reconstruction of infastructure for the purpose of economic development
• Eligible for any political subdivision of this state, tribal government, or local development corporation from the fund to construct or reconstruct infrastructure for the purpose of serving an economic development project
• Board consults with appropriate state agencies to evaluate the feasibility and merits of the proposed infrastructure improvements
• Board considers the economic impact of the project to be served by the proposed infrastructure improvements
• Board considers the funding available to and utilized by the applicant

Program administered by the Board of Economic Development

For more information:

• Visit the South Dakota Governor's Office of Economic Development Website
• Contact Planning & Development District III, located in Yankton
  • Phone: 605-665-4408
  • E-mail: districtiii@districtiii.org

The Proof of Concept Fund is a loan program that will provide up to $25,000 investments for eligible applicants to conduct research demonstrating the technical and economic feasibility of an innovation significantly enhancing the likelihood of commercialization of the innovation.

The Proof of Concept Fund:

• Provides up to $25,000 investments to conduct research demonstrating the technical and economic feasibility of an innovation
• Eligible parties include: entrepreneurs, universities, existing South Dakota companies, or other entities committed to commercializing the results in South Dakota
• Requires a matching cash or in-kind investment of at least 10 percent of the total project cost
• Investment proceeds may be used to pay consultant contracts, materials and supplies, salaries for employees in South Dakota, and necessary services for technical feasibility or marketing studies

Program administered by the Board of Economic Development

For more information, visit the South Dakota Governor's Office of Economic Development website.

The Board of Economic Development may provide reinvestment payments to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.  The program allows for project owners to receive a reinvestment payment, not to exceed the South Dakota sales and use tax paid on project costs.

Reinvestment Payment Program:

• Assists companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment
• Total project costs less than $20 million or equipment upgrades with a total project cost less than $2 million
• One key criteria considered by the board when reviewing an application is the likelihood the project would have occurred without the South Dakota Jobs grant
• Intended for projects that would not have occurred without the reinvestment payment

Program administered by the Board of Economic Development

For more information, visit the South Dakota Governor's Office of Economic Development website.

Giving new meaning to the phrase "ready, willing and able." The REDI (Revolving Economic Development and Initiative) Fund is designed to help promote job growth in South Dakota. This low-interest loan fund is available to start-up firms, businesses that are expanding or relocating and local economic development corporations.

Revolving Economic Development & Initiative (REDI) Fund:

• Provides permanent financing for land, buildings, machinery, and equipment
• 2 percent fixed interest rate available to start-ups or expansions
• 10-to 20-year amortization, based on useful life of assets financed
• Five-year balloon
• Take-out financing
• Minimum 10 percent equity contribution; REDI Fund loan amount may not exceed 45 percent of total project costs
• Job creation is a factor in determining loan amout - must meet program minimum wage and benefit requirements
• 1 percent origination fee

Program administered by the Board of Economic Development

For more information, visit the South Dakota Governor's Office of Economic Development website.

The SBA 504 loan program offers subordinated, fixed rate financing to healthy and expanding small businesses. Long-term, fixed rate financing (10-20 years) and reasonable rates (near long-term U.S. Treasury bond rates), make the SBA 504 an attractive and effective economic development financing tool.

SBA 504:

• Long-term, fixed-rate financing
• Available to all for-profit businesses, including retail operations
• As a Certified Development Corporation (CDC), the GOED offers 504 loans statewide
• Loan amounts: $2 million; up to $5 million under public policy; or, $5.5 million for manufacturing or enery-related borrowers
• Subordinate lien position to bank
• Fixed asset purchases are eligible

Program requires interim/construction financing

For more information, visit the South Dakota Development Corporation website.

When small businesses need a loan for working capital, equipment, real estate or other fixed-asset project costs, the MicroLOAN South Dakota program is a great fit. This low-interest loan is available to South Dakota companies and residents and can finance amounts as little as $1,000 and as large as $100,000.

Learn more at the South Dakota Governor's Office of Economic Development website.

The Board of Economic Development may provide grants to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.  The program allows for project owners to receive a South Dakota Jobs Grant for new or expanded facilities with project costs less than $20,000,000 or for equipment upgrades with project costs less than $2,000,000.

Learn More at the South Dakota Governor's Office of Economic Development website.

South Dakota WORKS is the newest financing program in the Governor’s Office of Economic Development (GOED). The federally funded program, launched in October of 2011, provides South Dakota small businesses with working capital funds.

South Dakota WORKS funding can only be used for business and commercial loans. The program requires a minimum loan amount of $20,000 that must be used as new financing. The program offers a fixed interest rate based on a maximum term of five years.

For more information, visit the South Dakota Governor's Office of Economic Development website.

The STEP grant program has helped thousands of small businesses obtain grants and find customers in the international marketplace since 2011. Through awards to U.S. states and territories, STEP helps small businesses overcome obstacles to exporting by providing grants to cover costs associated with entering and expanding into international markets.

STEP financial support helps U.S. small businesses:

• Learn to export
• Participate in foreign trade missions
• Design international marketing products and campaigns
• Support website globalization and e-commerce capabilities
• Pay for subscriptions to services provided by the U.S. Department of Commerce and other federal agencies
• Participate in export trade show exhibits and training workshops

Learn more at the U.S. Small Business Administration website.

Though the GOED’s Workforce Development Program, companies can access money to help train new and existing employees that require additional skills as the result of company growth. The program can fund up to 50% of eligible training expenses to companies that meet certain wage and benefit criteria. The funds are awarded on a reimbursement basis, typically $500 per trainee.

For more information, visit the South Dakota Governor's Office of Economic Development website.