South Dakota Works Financing Program
South Dakota Governor's Office of Economic Development (GOED)
Up to 20% of project cost
SD gap financing at 3% for business growth
South Dakota Works provides gap financing at 3% fixed interest for businesses needing working capital, equipment, real estate, or construction financing. GOED fills up to 20% of eligible project costs in a subordinated lien position — acting as the second piece after a lead commercial bank provides the majority of financing. 10% minimum equity required from the borrower. No minimum revenue or size restriction.
- Funding type
- Loan
- Level
- State
- Amount
- Up to 20% of eligible project costs (no published dollar cap per project found). Loan carries 3% fixed interest rate and 1% origination fee. Lead lender must provide the majority of project financing (minimum 1:1 lender match). Typical project size: $100K–$5M total, with SD Works covering $20K–$1M of that.
- Realistic amount
- Most SD Works loans are in the $50,000–$500,000 range, covering the gap in a $250K–$2.5M total project. Below-market 3%…
- Deadline
- Rolling — applications accepted year-round through South Dakota GOED.
- Status
- active
- States
- SD
- Payment model
- advance
Who qualifies
- For-profit business operating or locating in South Dakota
- Minimum 10% equity contribution from the borrower toward total project cost
- Must have a lead commercial lender participating in the project (minimum 1:1 lender match to SD Works funds)
- Business must demonstrate creditworthiness and ability to repay
- Project must create or retain jobs in South Dakota
- Passive real estate investment projects not eligible
Hard requirements
- Location restriction: South Dakota
- Minimum project size: $100,000
What it covers
Eligible expenses
- Commercial real estate purchase and construction
- Equipment and machinery purchases
- Working capital for business operations
- Inventory financing
- Interim construction costs
- Leasehold improvements
Ineligible expenses
- Passive real estate investment (e.g. commercial rental properties)
- Refinancing of existing debt
- Repayment of delinquent federal or state taxes
- Tax or escrow-held payments
- Personal expenses
How to apply
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1
Contact South Dakota GOED
Reach out to GOED at (605) 773-4633 or goedinfo@state.sd.us to discuss the project. GOED will confirm eligibility, discuss the lead lender requirement, and provide the application package.
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2
Secure lead commercial lender
Identify and commit a lead commercial bank or lender for the majority of project financing. SD Works is a gap filler — the lead lender must agree to participate and document their commitment before GOED will approve the SD Works loan.
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3
Submit SD Works application
Submit the application to GOED with: project description and budget, business financial statements (2–3 years), business plan or expansion plan, lead lender commitment letter, collateral description, and equity contribution documentation.
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4
Board of Economic Development review and approval
GOED submits the application to the South Dakota Board of Economic Development for approval. Board meets periodically — allow 30–60 days from complete application to board review.
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5
Close loan and receive funds
Upon approval, SD Works loan is closed concurrently with the lead lender financing. Funds disbursed for approved project expenses. Repayment begins per the amortization schedule (matched to asset useful life, maximum 20 years, 5-year balloon).
SD Works is a true gap tool — bring your commercial bank to the conversation first. GOED often works with relationship lenders who know the program; a warm intro from your banker to GOED can accelerate the process significantly.
Deadline & timing
SD Works accepts applications on a rolling basis with Board of Economic Development approval typically required. Contact GOED at (605) 773-4633 for current cycle details.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.