Starting or growing a small business in South Dakota can be rewarding, but it also comes with financial challenges. For many entrepreneurs, securing funding is one of the biggest hurdles. The good news is that South Dakota offers a variety of small business grant opportunities to help owners overcome those challenges. This guide will walk you through the main types of South Dakota small business grants available, how to apply, and tips to boost your chances of success.
How Do Small Business Grants Work?
Unlike loans, small business grants in South Dakota do not require repayment. They’re typically awarded by government agencies, nonprofit organizations, or private foundations to help stimulate local economies, support innovation, and create jobs. Most grants come with specific eligibility requirements and deadlines, so it’s important to do your research and prepare ahead of time.
South Dakota grants for small businesses may be competitive, and some are geared toward certain industries, communities, or business stages—such as startups, rural ventures, or minority-owned businesses.
State-Supported Grant Opportunities in South Dakota
The state of South Dakota does not offer many traditional small business grants, but there are state-funded programs and economic development resources that can provide similar support.
Governor’s Office of Economic Development (GOED)
GOED provides financial tools and technical assistance to encourage business expansion and job creation. While the main offerings are loans and tax incentives, businesses may qualify for special funding through partnership initiatives or matching grants for specific projects.
Programs include:
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Value Added Finance Program
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Economic Development Partnership Program
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Revolving Economic Development and Initiative (REDI) Fund
These programs can support business infrastructure, workforce development, or feasibility studies.
South Dakota Arts Council Grants
Creative businesses in the arts and culture space may be eligible for support through the South Dakota Arts Council. Grant categories include project grants, operational support, and artist fellowships. While these aren't small business grants in the traditional sense, they can support for-profit endeavors like galleries, media companies, or design studios working in partnership with community groups.
Federal Grants Available to South Dakota Businesses
If unable to successfully secure South Dakota small business grants, business owners can also access funding through federal grant programs. Many of these are competitive and focused on innovation, research, or underserved communities.
U.S. Small Business Administration (SBA)
While the SBA does not give out direct grants for starting a business, it offers several federally backed programs you may qualify for, especially if you're engaged in research, technology, or exporting.
Programs include:
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Small Business Innovation Research (SBIR)
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Small Business Technology Transfer (STTR)
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State Trade Expansion Program (STEP)
U.S. Department of Agriculture (USDA) Rural Development
South Dakota’s rural communities may benefit from USDA Rural Development grants. Programs such as the Rural Business Development Grant (RBDG) support small rural businesses with technical assistance, training, or facility upgrades. These grants are especially relevant to entrepreneurs in farming, manufacturing, and community-based services.
Local and Regional Grant Resources in South Dakota
Some of the most accessible funding comes from city or county development agencies, chambers of commerce, and regional economic organizations.
Sioux Falls Economic Development Resources
Sioux Falls offers incentives and funding options through Forward Sioux Falls and the Sioux Falls Development Foundation. While direct grants may be limited, some programs offer matching funds or support for minority-owned businesses and startups.
Black Hills Community Foundation
This foundation provides grant funding for local projects that support economic development, workforce readiness, and youth entrepreneurship in the Black Hills region. Nonprofits and business-led initiatives may apply.
Local Chambers of Commerce and Community Groups
Chambers across the state—like those in Rapid City, Brookings, and Aberdeen—sometimes offer small-scale grants or contests. These include pitch competitions, innovation awards, or matching grants for storefront improvements.
How to Qualify for Small Business Grants in South Dakota
To qualify for a small business grant in South Dakota, your business must typically be registered in the state, operate as a for-profit or nonprofit entity, and meet size or industry requirements set by the grant program. Most grants require a clear plan for how the funds will be used, along with documentation like a business plan, financial statements, and proof of community impact. Be sure to follow all instructions and meet deadlines to stay eligible.
Tips for Applying for South Dakota Small Business Grants
If you want to be one of the fortunate South Dakota small business grant recipients, pay close attention to the application process. Applying for a grant can be a time-consuming process. Preparation and attention to detail can increase your odds of success.
Here are some key tips:
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Read eligibility rules carefully. Make sure your business fits the criteria before applying.
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Prepare strong documentation. This may include a business plan, financial projections, tax returns, or proof of community impact.
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Tailor each application. Customize your responses to match the goals of the grant provider.
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Highlight local impact. Emphasize how your business supports South Dakota’s communities, economy, or workforce.
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Meet all deadlines. Late or incomplete applications are usually not considered.
Additional Funding Options for South Dakota Businesses
There are still other resources to explore if your attempts to secure South Dakota small business grants haven’t yielded positive outcomes. For instance:
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South Dakota Development Corporation offers gap financing for new and expanding businesses.
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Microloan providers, such as GROW South Dakota, offer loans to underserved entrepreneurs.
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Business plan competitions from universities or nonprofit incubators often include cash prizes or seed funding.
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The Fast Break grant for small business program is a collaborative initiative between LegalZoom and the NBA family, including the WNBA and NBA G League, that delivers $3 million in grants and essential business services.
Combining grant opportunities with loans, tax incentives, or crowdfunding can help you build a more complete funding strategy.
Final Thoughts on South Dakota Small Business Grants
South Dakota’s grant options may be limited compared to those in other states, but valuable resources still exist, especially for businesses in rural areas, creative fields, or those creating jobs and generating value in their communities. Take the time to research, apply carefully, and don’t be afraid to reach out to local economic development organizations for help. With the right preparation, grants can play a key role in helping your small business grow and succeed.
