South Dakota Small Business Grants 2026: What's Open Now

South Dakota small business grants open or recurring in 2026

Three South Dakota programs offered grant money a for-profit company could apply for on October 18, 2026, and all three are run by GOED. None has a fixed 2026 deadline, but each one pays for a defined cost, and two of the three pay you back after you spend. That's a short list, and Grantsights would rather say so than pad it.

These are loans, investments, and free help, not grants. For most South Dakota owners, this table matters more than the one above:

Left out on purpose: the South Dakota STEP export grant, because its grant period ended September 29, 2026 and no new period was posted; the Community Based Child Care Grant, which GOED calls "a one-time funding opportunity" that's now closed; the Reinvestment Payment Program, which only covers projects over $20 million or equipment upgrades over $2 million; the E15 tax refund, which only fuel marketers can claim; South Dakota Department of Labor apprenticeship grants, since the only figures Grantsights found were 2018 to 2021 rounds; and city programs in Sioux Falls and Rapid City, which Grantsights couldn't confirm on a current official page.

Last updated: 2026-10-18

To see which South Dakota programs fit your county, industry, and size, run the free eligibility checker, or browse current listings in the Grantsights grant database. The small business grants by state hub compares South Dakota with every other state, and the South Dakota grants guide covers nonprofit and community funding.

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Workforce Development and the Jobs Program: GOED's two business grants

The Workforce Development Program pays up to 50% of eligible training costs, and its rules are more specific than most owners expect. All training must be technical. New-hire training only counts when the jobs come from company growth, not from replacing people who left. Every trainee must earn at least $19.50 an hour before training begins, and current employees must get a raise tied to the new skills. You also have to offer health insurance that the company pays at least part of.

The money comes after the work. GOED pays per trainee on a reimbursement basis, 85% when it receives the initial report and the last 15% after the follow-up report. The application, with a budget and program narrative, has to reach GOED at least three weeks before the first class.

For example, one manufacturer in Sioux Falls spending $30,000 to certify six new machinists on CNC equipment, each starting at $21 an hour, could recover up to $15,000, paid mostly after the training ends and the first report goes in.

The South Dakota Jobs Program is the bigger but less predictable grant. The Board of Economic Development can award it to help offset the upfront cost of relocating, expanding, or upgrading equipment, for facility projects under $20 million or equipment projects under $2 million. GOED's page doesn't publish an award amount, and the board asks whether the project would have happened anyway. If it would, expect a no. Retail stores selling to consumers, hotels, housing, and health care buildings are excluded outright, which rules out most Main Street businesses.

The verdict: Workforce Development is the best grant in the state for a growing company that hires skilled staff, because the bar is wages and training, not dozens of new jobs. The Jobs Program is worth a call only if you're building or buying major equipment and can honestly show the project depends on it.

Proof of Concept: South Dakota's grant for testing an idea

Proof of Concept offers up to $25,000 to show that an innovation works technically and can make money before it reaches the market. GOED's page says applications can come in at any time, and staff screen each one and send it to reviewers within 10 days. The Research Affairs Council, made up of the six public universities, does a technical review, and a group of private investors and incubator managers does a business review.

Three details matter. You need a 10% match in cash or in kind. The money can pay consultants, materials, South Dakota employee salaries, and feasibility or marketing studies, but not the founders' or lead researchers' own salaries, incorporation fees, or general operating costs. And when you file the final report, GOED decides whether the award is forgiven or whether repayment or investment terms apply, which is why GOED's own menu labels the program a grant and loan. Treat it as money that might come back with strings.

The same page links application forms for SBIR Phase 0 and SBIR supplements, but it doesn't state amounts or deadlines for either, so ask GOED before you plan around them.

SD Works, REDI, and other South Dakota loans

According to Treasury's SSBCI program summary, South Dakota put its entire $60.0 million SSBCI allocation into one program, SD Works, run by GOED. Treasury expects an average companion loan of about $250,000, with no minimum and a $5 million ceiling.

SD Works can sit behind the bank in a subordinated position, which is what makes it useful: it fills the gap a bank won't cover. It can't refinance existing debt, repay delinquent taxes, or fund passive real estate. The REDI Fund is GOED's older flagship loan, open to start-ups and to local development corporations, and its 3% base rate matches SD Works.

The microloan route is thin. The SBA's microlender list shows one South Dakota intermediary, Northeast South Dakota Economic Corp. in Sisseton. SBA caps microloans at $50,000 and says the average is about $13,000.

Which federal grants reached South Dakota small businesses in FY2025

South Dakota small businesses received $4.60 million in federal grant obligations in FY2025, across 15 awards to 9 recipients, according to USAspending.gov data. That figure comes from a Grantsights analysis of USAspending.gov (opens in a new tab) FY2025 grant awards to small-business recipients in South Dakota, pulled from the public USAspending.gov API (opens in a new tab) on October 18, 2026 (grant award types only, October 1, 2024 through September 30, 2025, recipient type "small business").

That's a small and lopsided total. One energy research company accounts for about 40% of it, and three recipients account for about 78%. Nearly all the rest is research money through SBIR-type programs, plus one education center grant that has nothing to do with running a typical business.

The one line an ordinary business could copy is the Veterinary Services Grant Program. According to USDA's VSGP page (opens in a new tab), its rural practice grants help veterinarians start or expand practices in shortage areas, and a single South Dakota practice received $125,000 in FY2025. For research-based companies, the SBIR grants guide walks through the federal competitions.

Two limits apply. Each recipient picks the "small business" label in its own SAM.gov registration (opens in a new tab), which is how a family engagement center lands in this list. And USAspending reports obligations, which are commitments that can later shrink, not cash paid.

What GOED's website doesn't tell you about South Dakota small business grants

GOED's financing page lists more than a dozen programs, and the honest count of grants an ordinary small business can use is three. Most of the menu is loans, bonds for manufacturers, and incentives for large projects.

The Reinvestment Payment Program isn't for small businesses. It covers projects over $20 million or equipment upgrades over $2 million, you must apply within 90 days of starting construction, and you must pay the project's taxes before any payment arrives. Owners who read about it first often underestimate how high that bar is.

Most money is reimbursement. Workforce Development pays after training, in two parts. STEP, when it's funded, reimburses after the trade show or export activity, usually within a month of your claim. Plan to front the cash.

The wage floor screens out many jobs. Workforce Development's $19.50 an hour minimum before training applies to every trainee. That excludes many entry-level retail, food service, and hospitality jobs, and the application on GOED's page is still the 2023 form, so confirm the current floor with GOED before you apply.

Loans need a partner. SD Works requires another lender to match at least 1:1, and REDI needs 10% equity. A common mistake is to call GOED before talking to your bank. Start with the bank.

Watch for grant scams. South Dakota has no general grant for opening a business, so anyone selling access to "South Dakota business grants" for a fee is a red flag. According to the Federal Trade Commission, the government won't contact you out of the blue about a grant, and it won't charge a fee to get one. The free federal list is at Grants.gov (opens in a new tab).

How to apply, step by step

1. Match the cost to a program. Skilled hires or upskilling point to Workforce Development; a prototype or feasibility study points to Proof of Concept; a building or major equipment points to the Jobs Program; everything else probably points to a loan.
2. Apply before you spend. Workforce Development needs three weeks' lead time, and the Jobs Program asks whether the project depends on the grant.
3. Bring your bank in early. SD Works and REDI both work alongside a lender and need equity.
4. Get free help. The South Dakota SBDC says it handles about 1,200 projects a year, and its consultants can help with projections and loan packages at no cost.
5. Watch for STEP's next round if you export, and keep your SAM.gov registration current for any federal award.

Owners near the borders can compare. The Minnesota small business grants guide covers the state to the east, and the Iowa small business grants guide covers the neighbor to the southeast.

Sources

• GOED Workforce Development (opens in a new tab)
• GOED Proof of Concept (opens in a new tab)
• GOED South Dakota Jobs Program (opens in a new tab)
• GOED Reinvestment Payment Program (opens in a new tab)
• GOED SD Works (opens in a new tab)
• GOED REDI Fund (opens in a new tab)
• South Dakota Trade STEP grant (opens in a new tab)
• Treasury SSBCI capital program summaries (opens in a new tab)
• SBA microloans (opens in a new tab)
• South Dakota SBDC (opens in a new tab)
• Four Bands Community Fund (opens in a new tab)
• South Dakota Enterprise Institute (opens in a new tab)
• USDA NIFA Veterinary Services Grant Program (opens in a new tab)
• USAspending.gov API (opens in a new tab)