Economic Development

South Dakota

A. State of South Dakota Programs

To be eligible for funding from state programs, your project must generally create or retain jobs in South Dakota.

Tax Increment Financing - This program is designed as a tool for local governments. The purpose of this "self-help" program is to establish and redevelop certain areas while at the same time increasing future fiscal capacity through a stronger tax base. Financing from the Tax Increment program must be used for redevelopment of designated areas.

Industrial Revenue Bonds - These bonds are issued to motivate and expand the general economic welfare and prosperity of the state. The bonds are used to encourage and/or assist in the location and expansion of a new business or an existing business. Eligibility for the new or expanding business is determined by the municipality, county or sanitary district offering the bond.

Financial Packaging - The Governor's Office of Economic Development has established five district offices to provide assistance and financial options to new and expanding businesses in the state of South Dakota. Financial packagers work closely with a company's staff to analyze their specific needs and project goals.

Economic Development Finance Authority - The objective of the Economic Development Finance Authority is to enable businesses to pool separate tax-exempt or taxable development bonds to allow the purchase of equipment and machinery, construction of any structure, site, facility, service or utility for the distribution, storage or manufacturing of agricultural/non-agricultural and industrial products. When an adequate dollar amount of projects have been approved, all the individual projects will be pooled into one issue and sold through an investment banking firm. This will lower the processing costs, possibly the interest rates, and enable smaller projects to become part of the tax exempt issue.

Industrial Development Grants - This program has been established for non-profit organizations and for public bodies serving rural areas and Indian tribes. A rural area is defined as an area not located within the outer boundaries of a city with a population exceeding 50,000. Not-for-profit organizations, entities that cater to rural areas, and Indian tribes and their communities are eligible for the Industrial Development Grants. Applicants must show that new and small private businesses can emerge as a result of their grant.

FmHA Guaranteed Business and Industrial Loans - The primary purpose of the Guaranteed Business and Industrial Loans is to establish and keep employment opportunities in the rural communities. It is also designed to promote and improve the environmental and economic conditions in these areas. There is no requirement that applicants be unable to obtain credit from other sources, unlike most other FmHA programs. B & I loans take a minimum of three months to process, so borrowers of less than $500,000 are encouraged to use the Small Business Administration loan program.

Site Location Assistance - The State of South Dakota provides site location assistance for companies interested in expanding or relocating in the state. Information available is: available buildings, tax advantages, available labor force, utility rates, zoning requirements, and transportation. Contact: Governor's Office of Economic Development, 711 East Wells Avenue, Pierre, SD 57501, PH (605) 773-5032.

South Dakota Talent Bank - The bank is a professional resume and labor exchange system designed to serve professional, technical, managerial and sales occupation applicants from outside of the state of South Dakota. Applications are sent to interested and recruited parties and the information is placed in the South Dakota Job Service active applicant computerized file.

Job Training Partnership Act (JTPA) of South Dakota - This program is sponsored by the South Dakota Department of Labor and is designed to work with organizations to provide job training and education to future employees to enable them to enter into the work force. JTPA will work with new and expanding businesses with short term skill training, on-the-job training and industrial based training programs, all tailored to the needs of the employer.

B. City of North Sioux City Programs

Reduced Taxation of New Structures and Additions - To encourage growth and development of North Sioux City, new structures and additions are given a property tax break. The new structure or addition must have a value of over $30,000 to qualify and must be within the city limits. In the first year following construction not more than 25% of the assessed value will be used for tax purposes. In the second year, not more than 50% of the assessed value will be used for tax purposes. In the third, fourth, and fifth years, not more than 75% of the assessed value will be used for tax purposes. Thereafter, the property will be taxed at the same percentage as is all other properties.

South Union County Development Corporation - The cities of North Sioux City, Jefferson, and Elk Point have property tax relief programs for businesses locating within each of those cities.

C. Private Sources in South Dakota

The Siouxland Initiative (TSI) - The Siouxland Initiative is the tri-state economic development program of the Siouxland Chamber of Commerce. It is a nonprofit entity made up of business and civic leaders in the Siouxland area. TSI can provide creative financial assistance to help attract businesses to the Siouxland area, help retain and expand existing businesses, develop new small businesses and enhance the quality of life in the Siouxland area.

Siouxland Economic Development Corporation (SEDC) - The SEDC is a nonprofit corporation which administers several different loan programs, including a micro-loan program. The SEDC portfolio includes Small Business Administration (SBA) loans, Economic Development Administration (EDA) loans, Community Development Block Grant (CDBG) loans, and loans from its own internal sources of cash.

MidAmerican Energy Company - The utility company actively promotes economic development in its service area. As a part of those efforts, it has a program that can provide assistance to businesses that are starting up, moving to, or expanding, in the Siouxland area.

Northwest Iowa Power Cooperative (NIPCO) - NIPCO is a generation and transmission (G & T) cooperative serving wholesale power to nine member rural electric cooperatives and many municipal electric systems in western Iowa. NIPCO promotes economic development in its service area and actively pursues business development and expansion projects. In addition, NIPCO can provide land and building data, demographics for the area, and financial assistance.