About this programme
The Value Added Sub Fund (VASF) makes loans for feasibility or marketing studies behind new, innovative agricultural development projects in South Dakota. It is run by the Governor's Office of Economic Development (GOED), and awards are made through South Dakota's Revolving Economic Development and Initiative (REDI) program; only the REDI board can approve an award from the fund, and GOED itself has no authority to commit financing outside programs it solely administers and controls.
It exists to help finance the studies that determine whether a new, technology-driven agricultural project can work, not the physical construction of the project itself, at a 0% interest rate.
How it works
VASF loans carry 0% interest and offer flexible repayment; funds go toward feasibility or marketing studies for new agricultural development projects, not construction.
An applicant cannot borrow more than 45% of total project cost for study expenses, and must provide an equity contribution of at least 10% of total project costs for the marketing or feasibility study. Matching funds can include cash spent or in-kind services provided on the project after the board approves the application.
If the Board considers an application, it may assess a loan processing fee of up to 1.5% of the amount applied for, to cover costs such as staff time, filing or recording fees, and outside legal counsel. The fee can be waived by the governing board and is not charged if the application is denied or never closed.
The REDI Board evaluates proposals against twelve criteria, including whether the concept is a new technology or new application of an existing one, whether preliminary market and feasibility research already shows a plausible market, the applicant's ability to manage full commercialization, community and third-party support, the applicant's capacity to repay the loan, and whether the project budget is realistic.
Who can apply
For feasibility or marketing studies behind new, innovative agricultural development projects in South Dakota.
Applicants must show a personal commitment and a commercialization development plan, and provide a personal resume, personal financial statement, business financial statement, and three business references so GOED staff can perform due diligence.
Applicants generally must supply three years of historical financial statements (balance sheet and income statement, audited preferred); a business younger than three years provides all financials it has.
How to apply
- Complete the VASF Application, available as a PDF or Word document from the program page, including the certification, applicant information, evaluation-criteria narrative, executive summary, and requested loan amount.
- Describe the product or process, the planned commercialization effort and market research, and the project's expected benefit to South Dakota agriculture and the broader state economy.
- List project co-sponsors and any marketing or feasibility consultants, with resumes attached, plus all other funding sources and their terms, with letters of commitment attached.
- Attach three years of historical financial statements (or all available financials for a newer business), and complete the project budget and expenditures-by-funding-source form.
- Submit the completed application to the South Dakota Governor's Office of Economic Development; incomplete applications are returned for completion before review.
Documents you’ll typically need
- VASF Application (PDF or Word)
- Personal resume and personal financial statement
- Business financial statement and three business references
- Three years of historical financial statements (balance sheet and income statement)
- Letters of commitment from co-sponsors and other funding sources
- Resumes/contracts for any marketing or feasibility study consultants
- Project budget and expenditures-by-funding-source form
Frequently asked
What interest rate applies to a VASF loan?
0%, with flexible repayment.
What can VASF funding pay for?
Feasibility or marketing studies for new, innovative agricultural development projects, not the project's construction.
How much of the study cost can the loan cover?
Up to 45% of total project cost for study expenses; the applicant must contribute at least 10% equity toward the study.
Is there a fee to apply?
If the Board considers the application, it may assess a processing fee of up to 1.5% of the loan amount for its costs; the fee can be waived and is not charged if the application is denied or not closed.
Who decides whether I get the loan?
The REDI (Revolving Economic Development and Initiative) board, which is the only body that can make an award from the program; GOED itself cannot commit financing outside programs it solely controls.
More funding in South Dakota
Agribusiness Bond Program
South Dakota Economic Development Finance Authority (part of GOED) · South Dakota
Tax-exempt bond financing up to $10 million for South Dakota agricultural and ag-processing manufacturers, at lender-set rates.
Proof of Concept
South Dakota Governor's Office of Economic Development (GOED) · South Dakota
Up to $25,000 to test whether an innovation is technically and economically feasible before commercializing it in South Dakota.
REDI Fund
South Dakota Governor's Office of Economic Development (GOED) · South Dakota
South Dakota's flagship 3%-rate loan fund for start-up, expanding, or relocating businesses, covering land, buildings, and equipment.
South Dakota Works
South Dakota Governor's Office of Economic Development (GOED) · South Dakota
A 3%-rate gap loan covering up to 20% of project costs for South Dakota businesses, matched by a participating lender.
All 5 programmes in South Dakota →
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.