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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, fixed assets, and interim construction financing. The Works program typically targets loans less than $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include building construction, equipment purchases, real estate financing, and working capital.

For additional information and to learn more about this recently expanded program, contact a business development representative at (605) 773-4633 or

How It Works

The borrower works with a participating lender to secure matching funds to be used in conjunction with a South Dakota 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


  • Minimum 1:1 match with another lender
  • 3% fixed interest rate
  • 10% equity required
  • 1% origination fee
  • Amortization matched to a useful asset life
  • Maximum 20-year amortization; 5 year balloon
  • True gap financing

South Dakota Governor’s Office of Economic Development

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