Low Interest Loans
Lake Area Improvement Corporation's Intermediary Relending Program (IRP) This program allows local businesses to work in partnership with the LAIC and a local bank to obtain a low interest business loan. There is a minimum loan amount, involvement with a bank and application with approval is required. Started in 2009, the program has been a success for new and expanding businesses. Contact the LAIC for more info!
First District Development Company Loan Programs The mission of the FDDC is to assist businesses by providing long term, lower rate financing for their growth and development, while improving the overall economic condition of the area. There are several loan programs available, for more information contact - www.1stdistrict.org/FDDC.
Rural Electric Economic Development, Inc. (REED) Fund The program provides financing for business and community projects that create and retain jobs and build community infrastructure. Contact Sioux Valley Energy at (605) 256-1600 for more information.
South Dakota Community Capital Fund The South Dakota Community Capital Fund (SDCCF) offers economic development organizations serving greater South Dakota the opportunity to participate in an innovative new development financing resource. Click here for more info about this program offered by Dakota Resources.
GROW South Dakota's Down Payment/Closing Cost Program
GROW South Dakota is a private non-profit corporation established in 2007. GROW South Dakota's purpose is to promote and foster economic development in distressed communities and underserved markets in South Dakota. GROW helps with housing, community and economic development projects.
Learn about GROW South Dakota at www.growsd.org
Dakota Resources At Dakota Resources, we want to stimulate Economic Development (job creation and business activity) in your community. We do that through a continuum of strategies that relate to business: - Creation - Attraction - Retention - Expansion
Funding - All four of those strategies need funding — and Dakota Resources makes flexible, reasonably priced capital available to Revolving Loan Funds and Economic Development Corporations who finance local development projects.
Find out more about what Dakota Resources does at www.DakotaResources.org
Taxes, Incentives & Financing
The South Dakota entrepreneur has a competitive edge over his/her business counterparts in 49 of the 50 United States. Per capita state taxes are the 49th lowest in the country here. The South Dakota business person enjoy:
- No Corporate Income Tax
- No Personal Income Tax
- No Personal Property Tax
- No Business Inventory Tax
- No Inheritance Tax
- Lowest State Per Capita Taxation
|Local Sales Tax Rate:||2%|
|State Sales Tax Rate:||4%|
|Agricultural Property Tax||$20.325 per $1,000 of value|
|Residential (Owner Occupied) Property Tax||$22.196 per $1,000 of value|
|Non-Agricultural Property Tax||$27.237 per $1,000 of value|
|**property taxes change every year per the Lake County Auditor's office, these are mil levys for inside City Limits of Madison.|
We work with the South Dakota Governor's Office of Economic Development (GOED) and the City of Madison to offer a variety of incentives for existing, expanding and new businesses. - Visit www.sdreadytowork.com for financing programs offered through the GOED>
South Dakota Financing
We can help!
We know that available financing is critical for your company to grow and prosper. That's why our business financing programs are designed with you in mind. From revolving loan funds to workforce development grants, we're sure we have one that's right for you:
Revolving Economic Development & Incentive (REDI) Fund – Provides permanent financing for land, building, machinery and equipment and associated installation costs.
Small Business Administration (SBA) 504 – Offers long-term, fixed-rate financing on fixed asset purchases to all for-profit businesses.
Agricultural Processing & Exporting (APEX) Fund – Assists companies that add value to agricultural products through processing or exporting out-of-state.
MicroLOAN SD – Offers access to working capital for small enterprises and may be used for fixed assets.
Bond Financing – Provides small businesses with access to the public bond market. Value-Added Ag Subfund – Available for feasibility and marketing studies for value-added agricultural projects.
Workforce Development Training – Provides matching grants to assist companies with up to 50% of eligible training expenses.
Community Development Block Grant (CDBG) – Provides matching grants to local governments, municipalities and counties.
Workforce Training Opportunities
The National Career Readiness Certificate program is offered by the Madison Area Career Learning Center (SD Department of Labor) and offers an opportunity for businesses to higher qualified employees. The NCRC is a portable, national credential that verifies to employers anywhere in the United States that an individual has essential core employability skills in Reading, Math and Locating Information. A full description of the program can be found at: SD Department of Labor.
NCRC is used for: - Screening – Employers interview only applicants who have the skills required for the job. - Hiring and promotion – A NCRC can be used as a "plus" factor to help make selection and promotion decisions. - Targeting employee training and development – Employers can target their training budgets for job-specific skills rather than basic skills.