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
(605) 773-3301







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.

LaJena Gruis
(605) 773-3301 



Future Fund

Business Incentives
​& Loan Opportunities

SBA 504

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.​

EDFA Pooled Bond

In an effort to increase the availability and demand for higher ethanol blends, support the local ethanol infrastructure and reduce the demand for foreign oil, the GOED offers two Ethanol Infrastructure Incentive Programs.

The Ethanol Flex Pump Program provides matching funds for fuel retailers wishing to install pumps that disperse ethanol blends. Similarly, the Ethanol Storage Tank Program awards matching funds for the installation of an underground or above-ground storage tank that allows the blender pumps to be used.

- 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.

Hunter Roberts
(605) 773-3301


Heartland Consumer Incentives

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
- inventory
- 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
(605) 773-3301




Redi Fund Loans

Encouraging Community Growth and Economic Stability
Heartland is committed to stimulating growth and prosperity in or customer communities. We offer a progressive economic development program including grants, incentives and a revolving loan fund – incentives our customers can promote to attract new businesses and to encourage existing businesses to expand. Ultimately, we strive to create economic stability and a superior quality of life for our customers.

Heartland has partnered with USDA Rural Development to create a revolving loan program that exceeds $6.5 million. Heartland has invested our own resources in the form of grants, incentives, loans and a special energy only rate for large users of electricity to stimulate growth in our customer communities. Our programs have contributed to the creation or preservation of more than 900 jobs.​

Visit the Heartland website to learn more:

SD Ethanol infrastructure

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.

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.



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

(605) 773-3301
​charlie.vangerpen @state.sd.us





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.

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.

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
(605) 773-3301




Community Development Block Grant.pdf

Community Development Block grants

South Dakota


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 Wessington Springs.
Direct Financial Support from the Corporation in the form of employee salary assistance and/or facility rent based on job creation and growth.
WSARLF participates with local financial institutions and other lenders to maximize the available capital for development projects.


SD Governor's Office

Microloan Express

Wess. Springs Area Revolving Loan Fund

Wessington Springs

Grow South Dakota Revolving Loan Fund