Incentives & Financing
Business Incentives and Financing Opportunities
Businesses investing in Pierre and Hughes County may be eligible for a variety of economic development incentives and financing programs designed to support growth and job creation. These programs help reduce startup costs, support expansion projects, and encourage long-term investment in the local economy.
PEDCO also works with businesses to identify available state and regional incentive programs that may include workforce training grants, tax incentives, development financing, and infrastructure assistance. These programs are designed to help businesses establish operations, create jobs, and expand within the community.
By connecting businesses with the right financial resources and economic development tools, PEDCO helps companies successfully invest and grow in the Pierre region.
Incentives
PEDCO has proven its ability to be as creative – and aggressive – as necessary to provide an incentive package that will create new jobs and investment in the Pierre area. In addition to the many financing tools below, new or expanding employers can get help with training, finding workers, site selection, zoning and regulations, permitting, and even application for applicable grants.
South Dakota REDI Fund
Up to 45 percent of a project’s total cost, requires matching funds and 10 percent minimum equity. Provides permanent financing for the purchase of land and associated site improvements, construction, acquisition, and renovations of buildings. Interest rates 3 percent, amortized up to 20 years on a building and 10 years on equipment, with a balloon payment due after five years.
Small Business Administration (SBA) 504
Long-term, fixed-rate financing for fixed asset purchases including land, buildings, new construction and equipment with a useful life of 10 years or more. Equity injection of 5 to 10 percent may be required.
South Dakota MicroLOAN
Made to small businesses within the borders of SD and SD residents, including main street and retail operations, for working capital, equipment, real estate or other fixed asset project costs. Max. loan $20,000.
USDA Business & Industry Guaranteed Loans
Guarantees up to 90 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing.
PEDCO Revolving Loan Fund
PEDCO’s loan fund is considered gap financing designed to allow local banks to share their risk while creating or retaining jobs and wealth in the community. Participation, rates and terms are at the discretion of the PEDCO Board of Directors.