2022 Housing Study Review  |  View here

State Incentives

The South Dakota entrepreneur has a competitive edge over all other business counterparts in the United States. The South Dakota business person enjoys:

  • No corporate income tax
  • No personal income tax
  • No personal property tax
  • No business inventory tax
  • No inheritance tax

South Dakota has the second best tax climate in the nation and is the second-most business friendly state! Find out more at the South Dakota Governor’s Office of Economic Development website.

BUSINESS LOAN APPLICATIONS

Revolving Economic Development and Initiative (REDI) Fund

South Dakota’s REDI (Revolving Economic Development and Initiative) Fund is South Dakota’s flagship financing tool. It is available to start-up firms, businesses that are expanding or relocating in South Dakota, as well as local economic development corporations. This low-interest loan can provide up to 45% of a project’s total cost and requires a 10% minimum equity contribution. Projects can include: land purchases; site improvements; construction, acquisition or renovation of a building; or to the purchase and installation machinery and equipment.

REDI Fund Application

MicroLOAN SD

When small businesses need a loan for working capital, equipment, real estate or other fixed-asset project costs, the MicroLOAN South Dakota program is a great fit. This low-interest loan is available to South Dakota companies and residents and can finance amounts as little as $1,000 and as large as $100,000.

MicroLoan Policy and Application

South Dakota Works

South Dakota WORKS is a flexible loan program that offers business and commercial loans to companies in need of working capital and interim construction financing. The WORKS program can finance up to $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include startup costs, working capital, payroll and construction on new buildings.

South Dakota Works Application

BUSINESS GRANT APPLICATIONS

Local Infrastructure Improvement

The Local Infrastructure Improvement Program provides grants to local development corporations, tribal governments, municipalities, counties, or other political subdivisions to construct or reconstruct public infrastructure associated with an economic development project.

Applicants must identify an economic development project and then work with their area planning district to submit a completed application before funding is considered.

If the board approves the application, the applicant must comply with the conditions of approval to remain eligible for the grant. GOED will issue payment within 30 days of the receiving the required compliance documentation.

South Dakota Planning District Map

Deadlines for the Local Infrastructure Improvement Program are as follows:

  • January 31 for consideration at the March board meeting
  • April 30 for consideration at the June board meeting
  • July 31 for consideration at the September board meeting
  • October 31 for consideration at the December board meeting

Workforce Development

Though the GOED’s Workforce Development Program, companies can access money to help train new and existing employees that require additional skills as the result of company growth. The program can fund up to 50% of eligible training expenses to companies that meet certain wage and benefit criteria. The funds are awarded on a reimbursement basis, typically $500 per trainee.

Workforce Development Application

Workforce Development Policies and Procedures

Dakota Seeds

Dakota Seeds is an innovative internship program that connects students with employers as a way to help fill temporary workforce needs and establish a pipeline for future permanent employment. Qualifying businesses can receive matching funds up to $2,000 per intern for internships in the Science, Technology, Engineering and Math (STEM) fields, as well as in manufacturing and accounting.

Dakota Seeds Guidelines

Dakota Seeds Application

Expand to the Black Hills.

FIND AVAILABLE BUILDINGS

Build in the Black Hills.

FIND AVAILABLE LAND