COVID-19: The Governor's Office of Economic Development is here to support you during these challenging and uncertain times. Learn More


South Dakota Works

Working Capital to Interim Construction Financing

South Dakota WORKS is a flexible loan program that offers business and commercial loans to companies in need of working capital and interim construction financing. The WORKS program can finance up to $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include startup costs, working capital, payroll and construction on new buildings.

How it Works

The borrower works with a participating lender to secure matching funds to be used in conjunction with an SD Works loan.

Use of Funds

South Dakota WORKS may be used for business purposes, including: start-up costs, working capital, inventory, and interim construction loans.

Ineligible uses of funds include:

  • Purchasing, constructing, renovating, or tenant improvements of an eligible place of business that is for passive real estate investment
  • Refinancing
  • Repaying delinquent federal or state income taxes
  • Repaying taxes held in trust or escrow


South Dakota WORKS can fund up to $1 million in a subordinated lien position. A bank or credit union must also participate. Loan terms are 1-5 years and there is a 1.5% origination fee. The GOED may take a second position on assets that banks or credit unions take as collateral.

South Dakota Governor’s Office of Economic Development

Return to Top