About this programme
The Agribusiness Bond Program helps South Dakota agricultural and ag-processing manufacturing businesses save on interest costs by financing fixed assets with federally tax-exempt bonds. The South Dakota Economic Development Finance Authority issues the bonds or notes, which a borrower then sells to finance a qualified project meeting state and federal requirements.
Because the bonds are tax-exempt, the buyer of the bond (usually a lender) can offer a lower interest rate than it would on a conventional taxable loan, and that savings is passed on to the borrower.
How it works
The program lets an agricultural business involved in manufacturing, including ag processing, borrow up to $10 million in tax-exempt bond financing for fixed assets.
The bond purchaser, usually the lender, sets the interest rate and repayment terms. The borrower repays interest and principal directly to the bond purchaser or trustee, not to the state.
Who can apply
Agricultural and business enterprises involved in manufacturing, including agricultural processing, in South Dakota.
Financing is limited to fixed assets.
How to apply
- Complete the Agribusiness Bond Program application (shared with the Limited Obligation Note/Bond program) and submit it to the South Dakota Economic Development Finance Authority.
- Arrange a bond purchaser, typically your lender, who will set the interest rate and terms of the bond.
Documents you’ll typically need
- Agribusiness Bond Program (AgBBP) and Limited Obligation Note/Bond (LNMB) application
Frequently asked
How much can I borrow through the Agribusiness Bond Program?
Up to $10 million in federally tax-exempt bond financing.
Who sets the interest rate on the bond?
The bond purchaser, usually the lender, sets both the rate and the terms.
What can the financing be used for?
Fixed assets for an agricultural or ag-processing manufacturing enterprise in South Dakota.
Who administers this program?
The South Dakota Economic Development Finance Authority, part of the Governor's Office of Economic Development (GOED).
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.