Business financial assistance programs are specially designed with the unique needs of diverse businesses in mind. The state of South Dakota and the Brookings area offer numerous funding assistance programs to help your business get off the ground and succeed quickly.
The business climate in South Dakota is the best in the nation, according to the Small Business Survival Index. Our per capita state taxes are the 49th lowest in the country, providing entrepreneurs with a competitive edge and a great place to build their business.
Brookings County offers a discretionary property tax formula for businesses investing $30,000 or more in new construction or expansion. For more
information, contact the BEDC office.
• REDI Loans - REDI (Revolving Economic Development and Initiative) is a low interest loan fund available through the Governor’s Office of Economic Development to start-up firms and businesses that are expanding or relocating.
• SBA 504 - The SBA 504 loan program offers
subordinated, fixed rate financing to healthy and expanding small businesses. Long-tem, fixed rate financing (10-20 years) and reasonable rates (near long-term U.S. Treasury bond rates), make the 504 Program an attractive and effective economic development financing tool.
• APEX Loans - The APEX (Agricultural Processing and Export) Loan Program is designed to assist
companies in communities with a population of 25,000 or less, which add value to raw agricultural products through processing, or export a minimum of 75 percent of its product to entities outside the State of South Dakota or replace an import.
• MicroLOAN - The MicroLOAN South Dakota Loan Program is a partnership with the South Dakota Development Corporation and Governor's Office of Economic Development. These loans are made available to small businesses for working capital, equipment, real estate or other fixed asset project costs.
• EDA and IRP Loans - First District Development Company also operates EDA (Economic Development Administration) and IRP (Intermediary Relending Program) loan programs that may provide up to $20,000 and $30,000 per job created, respectively. Loan terms are approximately 6% with a ten year term.
• South Dakota Innovation Partners - an early-stage venture capital firm focused on accelerating science and technology-based economic development, while providing a return on investment to its limited partners.
• Prairie Gold Venture Partners - a Sioux Falls, South Dakota-based venture capital firm providing private equity financing, insight, experience, and advice to help entrepreneurs capitalize on opportunities.
• Bluestem Capital Company - provides diversification through investments in a variety of industries, including hospitality, restaurant, utilities, technology, manufacturing, and energy.
• Angel Fund Network - the Enterprise Institute organizes and administers angel investment funds that provide early-stage capital to emerging growth companies in the region. These formal investment funds act as a network throughout the state to source local deal flow. These funds pool the intellectual and financial resources of accredited individuals and institutional investors.
These angel funds in South Dakota include:
• Great Opportunities, LLC (statewide)
• Prairie Winds Capital, LLC (Sioux Falls)
• SDSU/Brookings Angel Fund, LLC (Brookings)
• Two Bridges Capital, LLC (Yankton)
• SDSU/Brookings Angel Fund II, LLC (Brookings)
• Enterprise Angels - a network of accredited solo angel investors, angel funds, and early-stage venture capital companies. The network provides equity investors with a quality deal source for high-growth entrepreneurial ventures. Periodic meetings of the Enterprise Angels feature entrepreneur presentations as well as educational opportunities for investors. Support services and access to the Enterprise Angels is provided through the Enterprise Institute.
• RAIN Funds - the Enterprise Institute is working with RAIN Source Capital to establish RAIN funds in South Dakota. RAIN funds are a series of formal investment funds that pool the intellectual and financial resources of accredited individuals and institutional investors.