Opportunities for Funding

WDC’s relationships with local lenders and the South Dakota Governor’s Office of Economic Development means we can put together a finance package specific to your business needs. Whether you need help opening or expanding your company, we’re here for you. Keep reading to see opportunities.
South Dakota REDI Fund

South Dakota’s REDI (Revolving Economic Development and Initiative) Fund is South Dakota’s flagship financing tool. It is available to start-up firms, businesses that are expanding or relocating in South Dakota, as well as local economic development corporations.



The REDI Fund provides financial assistance up to 45 percent of a project’s total cost financing for the purchase of land and associated site improvements, construction, acquisition, and renovations of buildings. It also can be used to help cover fees, services and other costs associated with construction.

Companies should secure matching funds and be able to provide a 10% minimum equity contribution before applying to the Board of Economic Development for a REDI Fund Loan.



  • Currently set at 3% interest
  • Amortized over useful life of asset
  • Five-year balloon payment
South Dakota Works

The South Dakota Works program is a flexible loan program that offers business and commercial loans to companies in need of working capital, fixed assets, and interim construction financing. Uses for this loan include building construction, equipment purchases, real estate financing, and working capital.



  • Maximum of $500,000
  • 3% Interest
  • Maximum 20-year amortization; 5-year balloon
SBA 504

The SBA 504 Loan program was designed to foster economic growth by making affordable financing available for small businesses.

Through FDDC, loans are extended for terms of 10, 20 and 25 years at fixed, below-market interest rates to South Dakota businesses adding full time positions in the state. Loans are also available for businesses meeting public policy goals which include rural development, woman, minority or veteran ownership, expansion of exports, energy efficiency, labor surplus area or business district revitalization.



  • Long-term, fixed-rate financing
  • Available to for-profit businesses
  • Subordinated to first mortgage lenders
Property Tax Incentive

Codington County offers a five-year discretionary property tax on any new commercial or industrial construction over $30,000 as follows:

  • 1st Year: 0% of the assessed property value
  • 2nd Year: 0% of the assessed property value
  • 3rd Year: 0% of the assessed property value
  • 4th Year: 0% of the assessed property value
  • 5th Year: 0% of the assessed property value

The discretionary formula does not apply to existing buildings. The discretionary formula is applied in the first year following completion of the facility.

Additional Tax Incentives

Watertown, South Dakota, has the best tax incentives any business can ask for:

  • No corporate income tax
  • No personal income tax
  • No personal property tax
  • No business inventory tax
  • No inheritance tax