Biggins Lacy Shapiro & Company, LLC

South Dakota Economic Development Incentive Program

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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.

Local Infrastructure Improvement Program: Provides grants to aid in funding the construction of infrastructure associated with an economic development project. This program is open to any local development corporation or political subdivision of the state. 

Ethanol Infrastructure Incentives: There are two Ethanol Infrastructure Incentives Programs. The Ethanol Flex Pump Program provides matching funds for fuel retailers that provide pumps dispersing ethanol blends. The Ethanol Storage Tank Program also matches funds for the installation of below or above ground storage tanks that allow blender pumps to operate. Both programs are designed to increase the availability and demand for higher ethanol blends and to reduce the demand for foreign oil. 

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.

Proof of Concept Fund:  Loan program providing up to $25,000 in advances for qualified applicants. Applicants must submit research highlighting the technical and economic likelihood of an innovation prior to commercialization. Three avenues within POC fund include research funding, market analysis funding and patent funding. Funds may not be used to pay salaries of researchers or project leaders, legal fees for incorporation and general business operating expenses. A 10% matching contribution is required. 

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.

Economic Development Partnership Program: Provides matching grants for the purpose of developing or expanding community development programs. Funds may be used for equipment and training needs, new staff or to promote existing part-time employees. 

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: May 2019



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