South Dakota Economic Development Funds

The Governor's Office of Economic Development offers various financing alternatives.

The Revolving Economic Development and Initiative (REDI) Fund is designed to help promote job growth in South Dakota . The fund provides up to $5,000 per job created with the total loan amount being no greater than 45% of the total project costs. However, companies should secure matching funds and be able to provide a 10% minimum equity contribution prior, to application. Funding is provided at 3% interest amortized to match the useful life of the assets with a 5-year balloon payment.

The Pooled Bond Program is available through the state's Economic Development Finance Authority. This provides long-term financing at fixed interest rates through the issuance of bonds. The program is rated "A" by Standard and Poors, so it is able to offer a lower interest rate to the borrower. The program can be used for construction; storage, distribution or manufacturing of products; or the purchase of new machinery and equipment used in an industrial process. The program can finance 80% of new construction and 75% of new equipment costs.

The Workforce Development Training Grant 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.

MicroLOAN South Dakota offers businesses access to working capital and is subordinated debt. Local banks must fund at least 50% of the project costs. The state may fund up to 50% of the project costs, but not more than $20,000. Total project costs may not exceed $200,000.

For more information contact the Governor's Office of Economic Development in Pierre, SD at (800) 872-6190 or the Regional Representative in Rapid City at (605) 394-1706 or visit the Governor's Office of Economic Development website.