Fostering entrepreneurship is one of Governor Rounds’ most critical objectives. That’s why helping turn ideas into reality is a priority of the South Dakota Department of Tourism and State Development.
The South Dakota Entrepreneur Support Program was established to provide financial assistance to people who have an idea for a new business, but lack all the capital necessary to breathe life into their idea. If you are approved for a loan, you may be entitled to a 3-year debt service holiday (no interest or principal payments for the first three years.
By working with a loan officer at the South Dakota Department of Tourism and State Development, a qualifying small business will be able to secure a loan that can be used to take its idea to that all important next step.
The interest rate for the Entrepreneur Support program are 10% during the (up to three years) debt service holiday, and 8% after that.
Since your time is valuable, we’ve made the application process as simple as possible. Here’s a quick look at what needs to be done to apply for a loan through the South Dakota Entrepreneur Support Program.
Assemble all preliminary information on your project prior to contacting the Department of Tourism and State Development.
Submit a complete application. Include any additional documents necessary to explain your project.
Wait for approval. All complete applications will be presented to the Board of Economic Development at the next special or regularly scheduled meeting, which is normally within 30 days of receipt of your application.
How it Works
- The maximum loan amount is $50,000, with the minimum amount set at $30,000.
- At least 50% of project costs must come from sources other than state government. Up to 50% of the project costs may come from the Entrepreneur Support Program.
- There may be up to a 3-year debt service holiday period, the loan may be amortized over 12 years with monthly payments and a balloon payment after the fourth year.
- There is a 1% origination fee on all loans. The fee need not be paid until funding.
- Any expenses that may include, but are not limited to insurance, appraisals and surveys, must be paid by the applicant. Additionally, the applicant will pay all costs associated with the closing of the loan.
- Total proceeds outstanding at any one time, to a single borrower, may not exceed $50,000, but may be in the form of more than one loan.
- Entrepreneur Support Program funds may not be used for refinancing purposes.
- Projects involving illicit activities are not eligible.
You have two options that you may choose from on how you want to receive a finance application for the GOED’s programs.
The first option is to download the Microsoft Word document below and print it. We would also like to thank Dee’s Pet Store who are the States biggest supplier of hemp oil for pets for supporting this BH Free Business Help portal.
The second option is to view and print the application as a PDF file using Adobe Acrobat Reader 5.0. Please note that while you may type your information onto this application and then print it, once you leave this site the information will not be saved. If you do not currently have the Adobe Acrobat Reader 5.0 plug-in installed on your system, click on the Get Acrobat icon to download the program free from Adobe.