Incentives Directory

Community Development Block Grants

Growing Small Communities in South Dakota
The state’s CDBG program is funded through an annual formula allocation from the US Department of Housing and Urban Development (HUD). The program allows the state to fund a variety of different projects in small cities and rural areas. All projects must meet one of HUD’s national objectives, with the primary objective to benefit people of low-moderate income (LMI.)

Eligible applicants include all incorporated municipalities and counties. (Rapid City, Sioux Falls, and Tribal governments are the exception because these entities receive direct funding from HUD.) Eligible applicants may apply for funding on behalf of townships, unincorporated communities, and certain non-profit associations.

Annual Allocation in Three Separate Accounts
South Dakota separates their annual allocation into three separate accounts:

The Community Projects Account is available for a wide range of community development needs. Typical projects include water and wastewater infrastructure, community centers, workforce training, medical centers, and senior centers.

The Special Projects Account is available to help communities provide industrial infrastructure to assist businesses promising to create new job opportunities for LMI persons.

The Imminent Threat account is available to help communities address an urgent need of recent origin which poses a risk to the health and safety of its residents.

Projects Must Meet One of Program’s Objectives
Eligible projects must be consistent with at least one of the State’s program objectives:

Promote more rational land use.

Provide increased economic opportunities for low and moderate income persons.
Correct deficiencies in public facilities that affect the public health, safety or welfare, especially of low and moderate income persons.

 

Category: State Incentives, Grants & Loans

More State Incentives, Grants & Loans

Purpose 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 th... Learn More
Purpose The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps. The State of South Dakota has allocated $3.5 million over the next five years to get the program on its feet. In 2012, $950,00... Learn More
Following the recession of the early 1980s, the Future Fund was developed in 1987 with $1.8 million to invest in South Dakota’s workforce and build its economy. It helps to support the training of employees, retraining of employees during layoffs, business recruitment, and research an... Learn More
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 within the borders of South Dakota and South Dakota residents, including main street and retail operations... Learn More
Purpose We give new meaning to the phrase "ready, willing and able." Our REDI (Revolving Economic Development and Initiative) Fund is designed to help promote job growth in South Dakota. This low-interest loan fund is available to start-up firms, businesses that are expanding or relocating an... Learn More
Purpose 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. Criteria Type of Financing... Learn More
Program Overview Business/commercial loans for businesses needing working capital Term of 1 to 3 years Loan amount up to $1 million with a minimum amount of $20,000   Eligible Borrowers Businesses seeking new financing Certified development financial institutions Meet US Treasury guidelines Only have one WORKS loan program at a time for a company Ineligibl... Learn More
Purpose In 1999, a $3 million fund was created specifically to assist in funding feasibility and marketing studies for prospective value-added ag business. This Subfund of the REDI Fund is just one step toward improving value-added ag in South Dakota. By partnering with the Department of Agriculture... Learn More