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.
Agricultural Processing & Export (APEX) Loan Program: Designed to assist companies that locate or expand in communities with 25,000 or fewer residents, these loans can be used to purchase land, buildings, and equipment as well as the costs associated with building renovations. The program may provide up to 75% of the total project costs and requires 10% minimum equity contribution. The loans are amortized over the useful life of the assets and have a 5-7% interest rate with a balloon payment due after 6 years. The program is open to for-profit businesses and local economic development corporations.
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.
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: April 2016