Small Business Incentive Programs in South Dakota

Agency: USDA Rural Development - South Dakota

USDA Rural Development offers various grant and loan programs specifically designed to support business development in rural South Dakota communities. These programs include business and industry grants, rural business development grants, and specialized funding for value-added agriculture enterprises, providing essential capital access for LLCs operating outside major metropolitan areas.

Agency: South Dakota Governor's Office of Economic Development

This program provides matching funds to complement federal SBIR and STTR awards, helping innovative South Dakota companies bridge the gap between research and commercialization. The state match enhances the competitiveness of South Dakota businesses in securing federal Phase II funding while supporting technology-based economic development and high-value job creation.

Agency: South Dakota Department of Agriculture and Natural Resources

The CDBG Economic Development Program provides funding to support business expansion and job creation activities that primarily benefit low-to-moderate income persons. This program can fund infrastructure improvements, equipment purchases, and working capital needs for qualifying businesses, making it particularly valuable for LLCs committed to inclusive hiring practices and community development.

Agency: South Dakota Governor's Office of Economic Development

This performance-based incentive program provides grants and forgivable loans to businesses that create quality jobs and make substantial capital investments in South Dakota. The program emphasizes economic diversification and supports businesses across manufacturing, technology, agriculture processing, and other sectors that strengthen the state's economic base.

Agency: South Dakota Department of Labor and Regulation

While primarily a workforce development program, Build Dakota creates opportunities for LLC owners to access trained workers while receiving support for training costs. Participating employers can benefit from skilled workforce development and potential training cost offsets, making it valuable for businesses needing specialized skills in construction, manufacturing, healthcare, and technology sectors.

New Industry Tax Incentive

Provides property tax abatements for new or expanding manufacturing, processing, or research and development facilities. The incentive can reduce property taxes on new construction and equipment for up to ten years based on the level of investment and job creation.

Eligibility: Businesses making substantial capital investments in qualifying industries with commitments to create new jobs.

Machinery and Equipment Sales Tax Exemption

Exempts machinery and equipment used directly in manufacturing, processing, or research and development from state sales tax. This incentive reduces the upfront costs of business equipment purchases and expansions.

Eligibility: Businesses engaged in manufacturing, processing, mining, or research and development activities that use qualifying machinery and equipment.

Primary Sector Business Tax Incentive

The credit is based on the number of new jobs created and wages paid above specified thresholds.

Eligibility: Primary sector businesses including manufacturing, agriculture processing, research and development, and certain service industries that create jobs above minimum wage requirements.