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

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