About this programme
South Dakota Works is a business and commercial loan program run by the Governor's Office of Economic Development (GOED) for companies that need working capital, fixed assets, or interim construction financing. It acts as gap financing, filling in behind a lead lender rather than covering a whole project on its own.
Borrowers partner with a participating lender who provides matching funds, and GOED's loan is combined with that lender's financing for the project.
How it works
South Dakota Works covers up to 20% of eligible project costs. The loan is fixed at a 3% interest rate, requires a minimum 1:1 match with a participating lender, and requires a 10% equity contribution from the borrower, plus a 1% origination fee.
The GOED loan typically takes a subordinated lien position behind the lead lender. Amortization is matched to the useful life of the financed asset, with a maximum 20-year amortization and a 5-year balloon payment.
Eligible uses include building construction, equipment purchases, real estate financing, working capital, start-up costs, inventory, and interim construction loans.
Who can apply
South Dakota businesses needing working capital, fixed assets, or interim construction financing, arranged alongside a participating lender who provides at least a 1:1 match.
The loan cannot be used for passive real estate investment properties, to refinance existing debt, or to repay delinquent federal or state income taxes or taxes held in trust or escrow.
How to apply
- Arrange a participating lender who will provide at least a 1:1 match on the financing.
- Complete the GOED Loan Application, available as a PDF or Word document from the program page.
- Submit the application to the South Dakota Governor's Office of Economic Development.
Documents you’ll typically need
- GOED Loan Application (PDF or Word)
Frequently asked
How much of my project can South Dakota Works finance?
Up to 20% of eligible project costs, as gap financing behind a lead lender.
What is the interest rate?
A fixed 3% rate.
Do I need a matching lender?
Yes, a minimum 1:1 match with a participating lender is required, alongside a 10% equity contribution from the borrower and a 1% origination fee.
What can't the loan be used for?
Passive real estate investment properties, refinancing, or repaying delinquent federal or state income taxes or taxes held in trust or escrow.
How long is the loan term?
Amortization matches the useful life of the asset financed, up to a maximum 20-year amortization with a 5-year balloon payment.
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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.