South Dakota WORKS: State Launches New Small Business Lending Program

PIERRE, S.D. – Gov. Dennis Daugaard announced today that South Dakota businesses have a new financial option to help them expand.

South Dakota WORKS is the newest financing program in the Governor’s Office of Economic Development (GOED).  The program, launched in collaboration with the U.S. Department of the Treasury, provides South Dakota businesses with working capital funds.

The Governor said South Dakota WORKS complements GOED’s existing fixed-asset lending portfolio.

“Economic concerns at the national level have made it difficult for our businesses to access the working capital they need to grow and expand,” Gov. Daugaard said. “South Dakota WORKS allows our businesses easier access to the working capital, startup funds, payroll and inventory money they need to realize their full potential.”

South Dakota WORKS is funded by a $13.2-million State Small Business Credit Initiative (SSBCI) grant approved by the U.S. Department of Treasury. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act signed into law last fall. South Dakota expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $13.2 million allocation is expected to support more than $132 million in new private lending.

"These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities," said Treasurer of the United States Rosie Rios. "This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs."

Gov. Daugaard said the new program will also provide an additional boost to South Dakota’s lending industry. 

“South Dakota WORKS is a great opportunity to partner with our state banking industry to offer additional business financing,” the Governor said. “By cooperating on loans for working capital, we’re spreading any potential risk between the federally-backed South Dakota WORKS program and the private lending industry.  That should make it easier for our healthy businesses to access the working capital they need.”

South Dakota WORKS funding can only be used for business and commercial loans. The program requires a minimum loan amount of $20,000 that must be used as new financing.  For additional information on South Dakota WORKS, including loan applications, visit sdreadytowork.com or contact your local lending agency.

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