Biggins Lacy Shapiro & Company, LLC

South Dakota Economic Development Incentive Program

grant

South Dakota Jobs Grant Program:  A discretionary program reserved for highly competitive projects establishing new or expanding existing operations with a total project cost of less than $20,000,000 or equipment upgrades less than $2,000,000. Amount of the award may not exceed state sales/use tax paid on eligible project costs.

Reinvestment Payment Program:  A discretionary program reserved for highly competitive projects establishing new or expanding existing operations with a total project cost of more than $20,000,000 or equipment upgrades in excess of $2,000,000. Amount of the award may not exceed state sales/use tax paid on eligible project costs.

LOW INTEREST FINANCING

Revolving Economic Development & Initiative (REDI) Fund: This discretionary program offers low-interest loans of up to 45% of total project costs to assist business attraction and expansion projects. The REDI Fund provides permanent financing for the purchase of land and associated site improvements, construction, acquisition, renovations of buildings and equipment. In addition, the fund can be used to offset fees, services and other costs associated with construction.  Interest rates are 2%, and loans are amortized for up to 20 years on a building and 10 years on equipment, with a balloon payment due after 5 years. Companies should secure matching funds and be able to provide a 10% minimum equity contribution before applying.

South Dakota WORKS: Offers business/commercial loans to companies in need of working capital. Loans can be used to cover start-up costs, payroll, and construction. Loans are for 1-5 years, with a maximum loan of $1 million.

MicroLOAN: This discretionary program assists small businesses with their projects of less than $750,000. Loans can be used for permanent working capital, equipment or real estate financing .The maximum loan amount under this program is $100,000 for a period of up to 10 years, and carry a 3% interest rate.

JOB TRAINING PROGRAMS

Workforce Development Program: Supports three types of training: new employee training, current employee retraining, and current employee upgrade training.  The program is designed as a 50/50 match-funding source.  Every Workforce Development dollar must be matched with private sector contributions - either financial or in-kind.

Dakota Seeds:  An internship program for high school and post-secondary students. Internships must have a link to science, technology, engineering, mathematics, accounting or manufacturing. Companies must provide matching funds.

TAX EXEMPTIONS

Businesses in South Dakota are not subject to corporate income tax, personal income tax, personal property tax, business inventory tax, or inheritance tax.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com