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Laura Ingalls Wilder

Incentive Directory

  • APEX Fund

    The APEX (Agricultural Processing and Export) Loan Program is designed to assist companies in communities with a population of 25,000 or less, which add value to raw agricultural products through processing, or export a minimum of 75 percent of its product to entities outside the State of South Dakota or replace an import. The program is open to for-profit businesses and local economic development corporations.

    How it Works
    This program may provide up to 75 percent of the total project cost and requires the applicant to secure the other funds before applying for the APEX loan, including a 10 percent minimum equity contribution. The maximum loan amount available from the APEX program is up to $250,000. Eligible project costs include the purchase of land and the associated site improvements, the purchase and installation of machinery and equipment, the construction, acquisition or renovation of a building, and fees, services and other costs associated with construction.

    The interest rate is three percent, depending upon the risk of the project and the amount of participation by APEX. The interest rate will be determined at loan consideration and will be fixed for the life of the loan. The loans are amortized over the useful life of the assets being financed.


  • Community Development Block Grants

    Growing Small Communities in South Dakota
    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.)

    Eligible applicants include all incorporated municipalities and counties. (Rapid City, Sioux Falls, and Tribal governments are the exception because these entities receive direct funding from HUD.) Eligible applicants may apply for funding on behalf of townships, unincorporated communities, and certain non-profit associations.

    Annual Allocation in Three Separate Accounts

    South Dakota separates their annual allocation into three separate accounts:

    1. The Community Projects Account is available for a wide range of community development needs. Typical projects include water and wastewater infrastructure, community centers, workforce training, medical centers, and senior centers.
    2. The Special Projects Account is available to help communities provide industrial infrastructure to assist businesses promising to create new job opportunities for LMI persons.
    3. The Imminent Threat account is available to help communities address an urgent need of recent origin which poses a risk to the health and safety of its residents.

    Projects Must Meet One of Program’s Objectives

    Eligible projects must be consistent with at least one of the State’s program objectives:

    1. Promote more rational land use.
    2. Provide increased economic opportunities for low and moderate income persons.
    3. Correct deficiencies in public facilities that affect the public health, safety or welfare, especially of low and moderate income persons.


    Cody Richter
    Phone: (605) 773-3301


  • EDFA Pooled Bond

    Another financing option is the pooled loan program through South Dakota's Economic Development Finance Authority. This loan program, designed for more capital-intensive projects, provides small businesses access to larger capital markets for tax-exempt or taxable bond issuances. The program can fund projects individually or pool them to help lower the cost of the bond issuance. One of the biggest advantages of this program is a long-term loan with a fixed interest rate. A major benefit to borrowers is the South Dakota Economic Development Finance Authority's "A+" rating by Standard and Poor's. By maintaining an "A+" rating, the Authority is able to offer a lower interest rate to the applicant.

    Stand-Alone Issuance
    Individuals may also apply for Stand-Alone Bond Issuances when there is a need for an authorized issuing agency. The application below needs to be completed for these requests as well.

    Who's Eligible
    All for-profit businesses that are engaged in the operation of an industrial, ag processing or manufacturing business may apply for bond financing through the South Dakota Economic Development Finance Authority.

    How it Works
    The bonds can be either taxable or tax-exempt. To qualify for tax-exempt financing the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80 percent of new construction or purchase of existing building, and 75 percent of new equipment costs, with no greater than 25 percent of the bond proceeds being used for ancillary activities such as office or inventory space.


    Travis Dovre
    Phone: (605) 773-3301


  • Ethanol Infrastructure Incentive Program

    The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps.

    The State of South Dakota has allocated $3.5 million over the next five years to get the program on its feet. In 2012, $950,000 will be available for ethanol blender pumps installations at retail motor fuel stations.


    • The program awards up to $25,000 for the first pump and $10,000 for each additional pump.
    • A portion of the annual fund allocation will be awarded on a first-come-first-serve basis. The last $190,000 funds will be awarded competitively.
    • Funds can only be used for dispenser, associated hardware, and other tank fueling infrastructure.
    • Funds will be provided to grantees on a reimbursement basis with proper supporting documentation. (See below)
    • Projects must be completed and reimbursement must be requested within 6 months of grant approval date. A written extension may be granted by the GOED.

    A completed application that includes a ‘yes’ marked that the site does and will meet all of the South Dakota Department of Environment and Natural Resources rules and regulations. Further information on DENR requirements can be found at:

    Ethanol pumps must be installed at a retail location and:

    • Dispense at retail a blend of gasoline and ethanol in the ratio selected by the purchaser;
    • Manufactured to an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems;
    • Dispense the following three ethanol blends:
      • A 10 percent blend of ethanol;
      • A blend of 15 percent ethanol or more; and
      • A blend of 25 percent ethanol or more; and
    • Comply with all alternative fuel, biofuel, and flexible fuel requirements established by law.
    • Hoses dispensing ethanol blends (example: E-30, E-85) that are only legal for flexible fuel vehicles must be separate from hoses dispensing non-flexible fuel blends (E-0 or E-10)

    Awardees must continue to sell ethanol blends in excess of 15 percent for a minimum of 24 months of receiving assistance, or repay grant award. GOED may forgive a failure to comply if any of the following conditions are met:

    • There are fuel shortages that make compliance impractical;
    • Changes in fuel market conditions that make compliance impractical;
    • Changes in state or federal regulations that make compliance impractical.

    *The amount sought to be repaid may be prorated based upon the number of months less than 24 that ethanol blends were sold.

    Additionally, a report or reports of quantities of biofuel blends sold may be required during and after the 24 months of receiving assistance. South Dakota motor fuel retailers must agree to comply with pump removal guidelines, and dispose replaced pumps according to state law.

    Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota. During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund.

    How To Apply
    Applications will be accepted starting Jan. 9, 2012. Organizations applying for the grant must submit the application form and supporting documentation to Hunter Roberts via postal mail or e-mail at:

    Hunter Roberts
    South Dakota Governor’s Office of Economic Development
    711 E. Wells Ave.
    Pierre, SD 57501

    Supporting Documentation
    Supporting documentation must include:

    • Invoice documenting total cost,
    • Personal certification that the installation meets the Department of Environment and Natural Resources specifications,
    • Other appropriate documentation
    • Pump specifications detailing the number of hoses and blends.


    Hunter Roberts
    Phone: (605) 773-3301


  • Future Fund

    Following the recession of the early 1980s, the Future Fund was developed in 1987 with $1.8 million to invest in South Dakota’s workforce and build its economy. It helps to support the training of employees, retraining of employees during layoffs, business recruitment, and research and entrepreneurial activities. In 2011, $6,978,077 was awarded to 27 companies for these purposes, creating 1,335 jobs.

  • GROW South Dakota Revolving Loan Fund

    GROW South Dakota (also known as NESDCAP and NESDEC) provides affordable business financing to both new and existing businesses to purchase inventory, equipment or real estate. In addition, the state-wide organization provides home loans, home repairs, homeownership and financial education, weatherization, emergency services, and more.

    Visit GROW South Dakota for more information.

  • Kingsbury County Revolving Loan Fund

    KCDC’s Revolving Loan Fund: This fund is available to finance new business start-ups, as well as for the retention and expansion of existing businesses and community projects in Kingsbury County.
    Direct Financial Support from the Corporation in the form of employee salary assistance and/or facility rent based on job creation and growth.

    KCDEC participates with local financial institutions and other lenders to maximize the available capital for development projects.

    Excellent financing options available with Kingsbury County Revolving Loan fund, De Smet Development Corporation Revolving Loan Funds, REED (Rural Electric Economic Development) loan funds for lower than market rates, REDI (State of SD Revolving Loan Funds), MicroLOAN South Dakota Loan Program, NESDEC (Northeast South Dakota Economic Development Corp.), First District Association of local Governments and the South Dakota Work Force Development Program.

  • Kingsbury County Tax Abatement

    With the purchase of a newly constructed building, a five year pro-rated tax abatement is offered from Kingsbury County.


    Mark Boehm
    GOED's Tax and Industry Analyst
    Phone: (605) 773-3301

  • MicroLOAN Express

    The MicroLOAN South Dakota Loan Program is a partnership with the South Dakota Development Corporation, and Governor's Office of Economic Development. These loans are made available to small businesses within the borders of South Dakota and South Dakota residents, including main street and retail operations, for working capital, equipment, real estate or other fixed asset project costs.

    The MicroLOAN Express operates in the same fashion as the MicroLOAN, with the following exceptions:

    If an applicant qualifies under the policies and procedures of the MicroLOAN and they receive bank or credit union approval, approval under the MicroLOAN Express will be automatic as long as the MicroLOAN Express portion is in a pro-rata first collateral position with the bank or credit union.

    The bank or credit union must file all of the documents it requires of the applicant, as well as all internal documents relating to the loan with the Governor's Office of Economic Development in order to receive the paperwork relating to the MicroLOAN Express loan.


    Charlie Van Gerpen
    Phone: (605) 773-3301


  • REDI Fund Loans

    We give new meaning to the phrase "ready, willing and able." Our 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.

    How it Works
    The REDI Fund provides up to 45 percent of a project's total cost. Companies should secure interim (construction) financing, matching funds for permanent financing and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.

    Costs eligible for participation may include:
    the purchase of land and the associated site improvements
    construction, acquisition or renovation of buildings
    the purchase and installation of machinery and equipment.

    Costs that are NOT eligible include:
    refinancing of existing debt
    short-term, interim financing for the construction or acquisition phase of a project
    trade receivables
    other working capital needs
    preliminary design stage costs which include, but are not limited to market research, written cost estimates, development of business plan
    preliminary product development costs

    Interest rates have remained at 3 percent since the program's inception, and loans are amortized up to 20 years on land and buildings, and 10 years on equipment, with a balloon payment due after five years.


    Travis Dovre
    Phone: (605) 773-3301


  • SBA 504

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

    Type of Financing: The 504 Program is available for fixed asset purchases only: land, building, and equipment with a useful life of 10 years or more. Working capital, inventory, and venture capital are NOT eligible.

    SBA 504 financing is "permanent" take-out mortgage financing. Interim or construction financing must be utilized to complete the project.

    Eligible Businesses: Eligible borrowers are user, for-profit businesses. Ineligible businesses include not-for-profit, passive investment and real estate companies, financial institutions, developer/landlord arrangement, ventures, private recreation facilities and unregulated media firms.

    Size Requirements: The net worth of an eligible business may not exceed 8.0 million. Its net profit after taxes must not have exceeded an average of $3.0 million during the previous two years. Should a company fail to meet these standards, the company will still be considered a small business if it meets size requirements, based on the number of employees, which vary among the different industries depending on NAICS codes.

    How the Program Works
    Structure: Typically the 504 loan has a 50-40-10 structure where 50 percent of the project is financed by a regulated lender that receives a first mortgage position on all project collateral. Forty percent is provided by the South Dakota Development Corporation, which sells debentures guaranteed by SBA and receives a subordinated collateral position. The remaining 10 percent is provided by the borrower in a cash equity injection. This is the minimum equity contribution and depending on the project, and available personal resources, the SDDC may require a larger contribution.
    *Start-up businesses or single-purpose facilities require an additional equity contribution of 5 percent. If the business meets both of these criteria, a 20 percent equity contribution is required.

    Regulated Lender: At least 50 percent of the project cost must be provided from "non-federal" sources, such as commercial banks, S&Ls, saving banks, insurance companies and equity contributions. The lender will receive a first position on the assets acquired with the loan proceeds. The maturity of this loan must be at least 7 to 10 years, depending on the amortization of the SBA loan, and have an interest rate which is "legal and reasonable,” fixed or variable and may be renegotiable. The renegotiation formula must be stated in advance.

    South Dakota Development Corporation: Eligible businesses may borrow up to $5,000,000 with a minimum of a $50,000 loan being obtained through the SDDC. Loan amounts available for small manufacturing are $5,500,000. The SDDC portion of the project may not exceed 40 percent of the eligible project costs, nor can the SDDC portion exceed the first mortgage amount. The goal of the program is to create at least one job for each $65,000 of debenture or one job for each $100,000 for small manufacturing. Personal/corporate guarantees are required of all individuals or entities having 10 percent or more ownership in the business and may be required for managers who occupy key positions that are vital to repayment ability, regardless of their ownership percentages.

    The SDDC sells debentures, guaranteed by SBA, with a 10 or 20 year maturity based upon the weighted average of the useful life of the assets purchased with the loan proceeds. The rate of interest is fixed for the term of the loan and determined at the time of sale of the debenture, which is based on the current average market yield. There are various one-time fees associated with the 504 loans. The one-time processing fees total approximately 3.25 percent and are added to the loan amount. On-going servicing fees are added to the interest rate and include fees to the Central Servicing Agent, the SDDC and SBA. In addition, a 0.5 percent fee is payable by the first mortgage lender to the SBA.

    Equity Injection: The borrower generally provides at least 10 percent of the project cost in the form of a cash equity injection.


    LaJena Gruis
    Phone: (605) 773-3301


  • South Dakota WORKS

    Program Overview
    Business/commercial loans for businesses needing working capital
    Term of 1 to 3 years
    Loan amount up to $1 million with a minimum amount of $20,000

    Eligible Borrowers
    Businesses seeking new financing
    Certified development financial institutions
    Meet US Treasury guidelines
    Only have one WORKS loan program at a time for a company

    Ineligible Borrowers
    Speculative development
    Lending institutions, insurance companies
    Businesses engaged in pyramid sales
    Gambling concerns and private clubs
    Businesses engaged in activities prohibited by law

    Eligible Use of Funds
    Business purposes including: start up costs, working capital, payroll, inventory needs and new construction loans

    Ineligible Use of Funds
    Purchase, construction, renovation, or tenant improvements of an eligible place of a business that is for passive real estate investment purposes
    Refinancing purposes
    Repay delinquent federal or state income taxes
    Repay taxes held in trust or escrow
    Reimburse funds owed to any owner
    Purchase any ownership interest of any owner

    80% Bank or Private Debt
    20% SD WORKS Loan

    The Process
    The application packet is submitted to GOED loan officer for review
    SD WORKS loan review committee will meet to review the application once a month

    Private Lender Participation
    The bank or credit union must file all of the applicant’s documents they require, as well as all internal documents relating to the loan with the GOED, or the borrower needs to submit a SD WORKS application to the GOED

    Second on assets that banks or private lenders take as collateral

    $100 application fee


    Jacob Wagner
    Phone: (605) 773-3301


  • Value-Added Ag Subfund

    Designated as a Rural Renewal County through the Work Opportunity Tax Credit program, Kingsbury County offers employers a federal income tax credit of $2,400 for workers in certain targeted groups.


    Mark Boehm
    GOED's Tax and Industry Analyst
    Phone: (605) 773-3301

  • Work Opportunity Tax Credit (WOTC) - Kingsbury County


    Train Your Employees
    When it comes to training, South Dakota puts its money where its mouth is. Through our Workforce Development Program, companies have access to dollars to help train new AND existing employees. Think your business could benefit by upgrading your employee's skills? Click on the links below to find out more.

    The Governor's Office of Economic Development will provide technical assistance to help develop the Workforce Development Program application. Technical assistance is provided to help identify approaches and ideas necessary to develop a successful project.

    The application must be completed and submitted before training is scheduled to begin. The application must contain the following:

    • Business and Project Information
    • Budget Detail
    • Program Narrative


    Ann Gesick Johnson
    Phone: (605) 773-3301


  • Workforce Development Program

    In 1999, a $3 million fund was created specifically to assist in funding feasibility and marketing studies for prospective value-added ag business. This Subfund of the REDI Fund is just one step toward improving value-added ag in South Dakota.

    By partnering with the Department of Agriculture, local communities, commodity organizations and others, the Governor's Office of Economic Development will work with you to take your project from conception to completion. Our goal is threefold:

    • To find niche markets that will add value to South Dakota ag commodities
    • To help fund marketing and feasibility studies
    • To help assemble the right people, capital and labor to ensure a successful project.

    How it Works

    1. Assemble background information on the proposed ag project and contact GOED.
    2. Complete the program application and submit it to GOED.
    3. GOED staff will review the application, determine eligibility and contact the applicant. Eligible applications will be presented to the SD Board of Economic Development for consideration.

    If approved, proceed with the feasibility or marketing study.

    Who's Eligible & Terms

    • Any for-profit business, nonprofit cooperative or group that forms an eligible legal entity may apply for a loan from the subfund.
    • Loans cannot exceed more than 45 percent of the total eligible project costs for marketing or feasibility study expenses.
    • Applicant must provide equity contribution of at least 10 percent of the total project cost for marketing and/or feasibility study expenses.
    • Applications can be submitted at any time.
    • The staff of the GOED will screen all applications for completeness and eligibility requirements within 30 days of receiving it.
    • Loan proceeds may be used for salaries, consultant contracts, supplies and necessary services for feasibility or marketing studies.
    • The maturity of a VASF loan may not be more than five years with regular payments amortized over not more than 20 years.


    Cody Richter
    Phone: (605) 773-3301​​​​​​​


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