Local Funding Assistance


Spearfish Economic Revolving Fund
The SERF program is intended to provide short-term, low interest (3%) loans to manufacturers and/or service exporters which are expanding or relocating to Spearfish. Proceeds from a SERF loan can be used for the acquisition of land, building improvements and equipment. Loan terms are based upon the needs of the applicant and the assets being financed. There are no minimum or maximum loan amounts associated with this program.
Download SERF Policies & Procedures
Download Application Here

SEDC Capital Loan Program
The Capital Loan Program was designed to provide low interest, flexible gap financing for projects which lead to the cre¬ation and/or retention of employment opportunities. Money can be used for acquiring land and buildings, machinery and equipment, construc¬tion, working capital, and contingencies. The loan fund cannot be used to refinance existing debt. The maximum loan amount is $40,000 with interest rates between 3%- 5%.
Download application here

Business Facade Loan Program
The goal of the Business Façade Loan program is to assist in the renovation costs associated with storefront improvements in designated business districts. To accomplish program goals, low interest municipal loans (zero percent) for up to $20,000 are made available to eligible property owners and/or tenants of commercial buildings.
Download application and policies and procedures PDF 
Download application here


Regional Funding Assistance

Lawrence County Revolving Loan Fund & West River Revolving Loan Fund
These loan programs make available up to $250,000 for a wide range of uses: feasibility studies, business start-up costs, purchase or development of land, infrastructure or the purchase of equipment. The applicant must demonstrate repayment capability. Loans are available in most western South Dakota counties, through the U.S. Department of Agriculture's Rural Development funding. Applicants must show at least 10 percent owner equity. Collateral to secure the loan will be required in the form of land, buildings, equipment, or other assets.
Download application here 

Small Business Administration 504 Loans (Regional)
The SBA 504 Program provides fixed rate, long-term financing for fixed assets such as land, buildings, and equipment. Administered by the Black Hills Community Economic Development, Inc., the program works with banks and businesses on what's known as a 50-40-10 structure. That means a regulated lender typically provides fifty percent of the financing and receives a first mortgage position on all project collateral. Forty percent is provided by the Black Hills Community Economic Development, Inc. The remaining ten percent is provided by the borrower in a cash equity injection. Black Hills Community Economic Development's portion may range from a minimum of $50,000 to a maximum of $1.3 million. Rates are fixed for the repayment period, usually 10-20 years.
Download application here PDF.


State Funding Assistance

Revolving Economic Development and Initiative Fund (REDI Fund/State)
The REDI Fund is designed to help promote primary job growth in South Dakota. This low-interest loan fund is available to start-up firms, businesses that are expanding or relocating and local economic development corporations. The REDI Fund provides up to 45 percent of a project's total cost. Companies should secure interim (construction) financing, matching funds for permanent financing and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan. Eligible costs include: the purchase of land and the associated site improvements, construction, acquisition or renovation of buildings and the purchase and installation of machinery and equipment. REDI loan program offers fixed rate interest which is currently 2%. Loans may be amortized up to 20 years on land and buildings and up to 10 years on equipment, with a balloon payment due after five years.
Download application here PDF.

SD MicroLoan
This program is designed to make loans to small businesses within the state. Service providers and retail businesses are encouraged to apply. Eligible expenses include working capital, equipment, real estate or other fixed asset project costs. Download application here PDF.
Download policies and procedures here PDF.

Some features of the program are:

  • 3% fixed rate interest.
  • Up to a 10 year term depending on loan size.
  • Program takes a second collateral position behind lead lender if they are a bank or credit union. Lead lenders can be banks, credit unions or other approved lenders, but the MicroLOAN is in a shared first collateral position when the lead lender is not a bank or credit union.
  • Loan amount from $1,000 to $100,000.
  • Project size up to $500,000.

Industrial Revenue Bonds
This loan program, designed for more capital-intensive projects, provides access to larger capital markets for tax-exempt or taxable bond issuances. One of the biggest advantages of this program is a long-term loan with a fixed, low interest rate. All businesses that are engaged in the operation of an industrial, ag processing or manufacturing business may apply. To qualify for tax-exempt financing the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80 percent of new construction or purchase of existing building, and 75 percent of new equipment costs.
Download an application here.