Browse Ambrook’s collection of funding programs by South Dakota Governor's Office of Economic Development (SD GOED)

Complete the Agribusiness Bond Program Application (available from SDGOED). Contact the South Dakota Governor's Office of Economic Development.

The purpose of the Agribusiness Bond Program is to assist in the development and expansion of agricultural and business enterprises within the State of&#x2004;South Dakota. The South Dakota Economic Development Finance Authority issues tax-exempt bonds and/or notes which the borrower may sell and use the proceeds to finance qualified projects that meet state and federal requirements. The borrower pays the interest and principal directly back to the purchaser or Trustee. The program enables agricultural businesses involved in manufacturing, including ag processing, to save on interest by using federally tax-exempt bonds for up to $10 million. Use of funds: fixed assets.



The purpose of the Agribusiness Bond Program is to assist in the development and expansion of agricultural and business enterprises within the State of South Dakota. The South Dakota Economic Development Finance Authority issues tax-exempt bonds and/or notes which the borrower may sell and use the proceeds to finance qualified projects that meet state and federal requirements. The borrower pays the interest and principal directly back to the purchaser or Trustee. The program enables agricultural businesses involved in manufacturing, including ag processing, to save on interest by using federally tax-exempt bonds for up to $10 million. Use of funds: fixed assets.

Agricultural and business enterprises within the State of South Dakota, including agricultural businesses involved in manufacturing and ag processing. Projects must meet state and federal requirements. Use of funds: fixed assets.

A payment that must be returned to the provider following specified terms of repayment and interest rate.

Loan

Buildings

Construction

Fencing

Greenhouse

High Tunnel

HVAC

Irrigation

Lighting

Repairs

Storage

Business Plan

Cash Rent

Refinancing

Transition

Succession

What you get: Tax-exempt bond financing, not a grant. "The program enables agricultural businesses involved in manufacturing, including ag processing, to save on interest by using federally tax-exempt bonds for up to $10 million." The benefit to the borrower is the reduced interest rate that comes with the federal tax exemption on the bond interest.

Maximum: $10 million per project.

Use of funds: Fixed assets.

Rate and term: Not set by the state. "Bond purchaser, usually the lender, sets rates and terms." The South Dakota Economic Development Finance Authority issues the tax-exempt bonds and/or notes, and "[t]he borrower pays the interest and principal directly back to the purchaser or Trustee." So your interest rate, amortization and term are negotiated with your lender or bond purchaser, not published by SDGOED.

Conditions: Projects must be qualified projects meeting state and federal requirements (federal tax law governs what qualifies for tax-exempt financing). No issuance fee schedule, minimum bond size, or match requirement is published on the program page.

Complete the Beginning Farmer Bond Application (available from SDGOED); see the Beginning Farmer Bond Summary for details. Contact the South Dakota Governor's Office of Economic Development.

The South Dakota Beginning Farmer Bond Program (SDBFBP) is a tax-exempt bond program designed to assist Beginning Farmers in the state of South Dakota to acquire agricultural property at lower interest rates. It enables lenders, individuals, partnerships, corporations, and other entities (the "Bond Purchaser") to receive federally tax-exempt interest on a loan or contract sale made&#x2004;to Beginning Farmers. After arranging the loan or sales contract, the Bond Purchaser obtains from the South Dakota Economic Development Finance Authority a federally tax-exempt Private Activity Bond in the amount of the loan or unpaid balance. The program enables lenders and qualified beginning farmers to save on interest by using federally tax-exempt bonds on loan amounts up to $600,000. Use of funds: real estate, depreciable property, and breeding livestock. The bond purchaser, usually the lender, sets rates and terms.



The South Dakota Beginning Farmer Bond Program (SDBFBP) is a tax-exempt bond program designed to assist Beginning Farmers in the state of South Dakota to acquire agricultural property at lower interest rates. It enables lenders, individuals, partnerships, corporations, and other entities (the "Bond Purchaser") to receive federally tax-exempt interest on a loan or contract sale made to Beginning Farmers. After arranging the loan or sales contract, the Bond Purchaser obtains from the South Dakota Economic Development Finance Authority a federally tax-exempt Private Activity Bond in the amount of the loan or unpaid balance. The program enables lenders and qualified beginning farmers to save on interest by using federally tax-exempt bonds on loan amounts up to $600,000. Use of funds: real estate, depreciable property, and breeding livestock. The bond purchaser, usually the lender, sets rates and terms.

Beginning Farmers in the state of South Dakota. Use of funds is limited to real estate, depreciable property, and breeding livestock, on loan amounts up to $600,000.

Historically Underserved

Loan size: "The program enables lenders and qualified beginning farmers to save on interest by using federally tax-exempt bonds on loan amounts up to $600,000." Eligible uses: "Real Estate, depreciable property and breeding livestock."

Rates and repayment are NOT set by the state. "Bond purchaser, usually the lender, sets rates and terms; can also work with contract sellers that aren't parents/grandparents." The benefit reaching the farmer is a lower interest rate, because the lender's interest income on the loan is federally tax-exempt.

Fee: the current (January 2025) Beginning Farmer Bond Application states "A Bond issuance fee of 1.5 percent of the total bond amount will be due at closing."

The "Beginning Farmer Bond Summary" still linked from the page is the 2019 edition, and its figures are dated — treat them as indicative only and confirm with SDGOED. It states: "No more than an aggregate amount of $543,800 (for calendar year 2019) may be used for Agricultural Land, Agricultural Improvements and Depreciable Agricultural Property"; "Of the possible $543,800, no more than $250,000 can be for Depreciable Agricultural Property, of which no more than $62,500 can be for 'used' property"; "There is no minimum loan amount for the Program"; "The Beginning Farmer must have a net worth under $400,000"; and on fees, "a non-refundable $100 application fee (submitted with the Application). A loan fee equal to 1.5 percent of the amount of the bond, but not less than $500, must be submitted by the Beginning Farmer or Bond Purchaser at loan closing. The loan fee may be financed with bond proceeds." A $100 fee applies to any later modification of the bond's rate or terms. Other published limits: "No more than 5 percent of the bond proceeds can be used toward the purchase of the house," and "20-25% of the bond proceeds may be used to purchase CRP acres." Maturity is bounded by federal law — "the weighted average maturity of an Authority bond can be no more than 120% of the average reasonably expected economic life of the project being financed with the proceeds of the bond (except land)."

Complete the Livestock Loan Participation Application (available from SDGOED). Contact the South Dakota Governor's Office of Economic Development.

The Livestock Loan Participation Program is designed to enable farmers and ranchers of limited equity to procure livestock loans at rates and terms which the applicant can reasonably be expected to meet, and thereby utilize available feed, facilities, labor, and management skills. The program participates with banks and borrowers to assist financing 50% of livestock purchases, with a maximum loan of $200,000. Use of funds: livestock purchase. Terms: 3.5% fixed (2.5% fixed for small/beginning farmers); up to 7 year term; participation loan.



Farmers and ranchers of limited equity in South Dakota. Financing covers up to 50% of livestock purchases, with a maximum loan of $200,000.

A bank participation loan, fully priced on the SDGOED page. "The program participates with banks and borrowers to assist financing 50% of livestock purchases and a maximum loan of $200,000."

Rate and term, verbatim: "3.5% fixed (2.5% fixed for small/beginning farmers); Up to 7 year term; Participation loan." The lower 2.5 percent rate is the published break for small and beginning farmers.

Structure matters here: SDGOED does not fund the whole purchase. It participates alongside a bank on 50 percent of the livestock purchase, so the borrower still arranges the rest through their lender, and the state's share is capped at $200,000. Eligible use of funds is livestock purchase only.

No application fee, closing cost, origination fee, or match percentage beyond the 50 percent participation structure is published, and no cost-share or grant component is involved. The program is aimed at "farmers and ranchers of limited equity" so they can "procure livestock loans at rates and terms which the applicant can reasonably be expected to meet."

Contact the South Dakota Governor's Office of Economic Development to apply.

Tax-exempt industrial revenue bond financing for processing or manufacturing and qualified environmental facilities remains one of the most competitive financing options available for the acquisition or construction of facilities and equipment. The program assists financing capital expenditures associated with the handling and/or processing of byproducts and livestock nutrients by using federally tax-exempt bonds. Use of funds: solid waste disposal expenses. Bond purchaser, usually the lender, sets rates and terms.



Companies planning investment in certain environmental facilities who are otherwise capable of securing bank financing meet the basic eligibility requirements. For processing or manufacturing and qualified environmental facilities handling and/or processing byproducts and livestock nutrients.

Fertilizer

Waste & Manure Management

Weeds

Waste & Compost

Nutrient Management

No rate, fee, or bond-size ceiling is published for this program. The program page's entire Terms section reads: "Bond purchaser, usually the lender, sets rates and terms." The shared application form (SD Economic Development Finance Authority, used for both the Agri Business Bond Program and the Livestock Nutrient Management Bond) leaves "Amount of Bond Request," the fixed or variable interest rate, and the "Proposed Terms of Loan" years blank for the borrower and bond purchaser to fill in — it publishes no cap and no fee schedule.

What the borrower actually gets is federally tax-exempt (below-market) interest on financing for "capital expenditures associated with the handling and/or processing of byproducts and livestock nutrients," not a grant or cost share. Eligible use of funds is limited to "Solid waste disposal expenses."

Context from GOED's general Bond Financing page (sdgoed.com/program/bond-financing/, not from the LNMB page itself): "To qualify for tax-exempt financing, the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80% of new construction or purchase an existing building, and 75% of new equipment costs, with no greater than 25% of the bond proceeds being used for ancillary activities such as office or inventory space." Bonds issued through the Economic Development Finance Authority carry its "AA" S&P rating, which GOED says lets it "offer lower interest rates to borrowers."

Verified 2026-09-04.

Apply through a local lender using the Rural Development Ag Loan Participation Application (available from SDGOED). Contact the South Dakota Governor's Office of Economic Development.

The Loan Participation Program is intended to supplement, not replace, existing credit. Loans are administered and serviced through local lenders. The program participates with banks and borrowers to assist financing capital expenses associated with value-added production or processing projects, and can lend up to 80% of the total loan up to $500,000. Eligible participation loan costs include land needed for the project, buildings and improvements, and machinery and equipment. Terms: 3.5% fixed (2.5% fixed for small/beginning farmers); up to 10 year term based on collateral.



- Borrowers financing capital expenses for value-added agricultural production or processing projects, with a participating bank or local lender.
- Projects must be located in South Dakota.
- Projects must show potential to produce or add value to agricultural commodities and goods produced in South Dakota, or to develop agricultural alternatives, aquaculture, horticulture, or forestry products.
- Individual applicants must be South Dakota residents at the time of loan closing.
- Individual applicants must have their principal residence and the majority of their farm operation located in South Dakota.
- Individual applicants must be age 18 or older.
- Individual applicants must be farmers or ranchers who derived 60 percent of gross income in the last tax year from farming, unless a waiver is granted for extraordinary circumstances.
- Applicants must be creditworthy according to the standards of the participating lender.
- Applicants must be unable to finance the project from their own resources or from conventional sources at reasonable rates and terms.
- Cooperatives, corporations, partnerships, or other legal entities qualify if the majority of memberships and stock are owned by eligible farmers, or if the entity indirectly assists farmers, ranchers, or their family members.
- Applicants must provide a minimum equity contribution of 20 percent of total project costs.
- The participating lender must be subject to state or federal credit examination and supervision and in good standing with its licensing authority.

Infrastructure

Participation size. "The program can lend up to 80% of the total loan up to $500,000." Read carefully: SDGOED buys a participation alongside a local lender rather than making the whole loan, so $500,000 is the state's maximum share — not a cap on the total project loan.

Rate and term. "3.5% fixed (2.5% fixed for small/beginning farmers); Up to 10 year term based on collateral." The reduced 2.5% rate for small and beginning farmers is the main concession here.

Structure. "The Loan Participation Program is intended to supplement, not replace, existing credit" and "Loans are administered and serviced through local lenders" — the farmer applies through their own bank, which keeps servicing.

Eligible costs. "Facility, equipment in facility and land needed for the project," tied to "capital expenses associated with value-added production, or processing projects."

No application fee, origination fee, match requirement, or minimum loan size is published.

Verified 2026-09-04.

Complete the VASF Application (PDF, available from SDGOED). Contact the South Dakota Governor's Office of Economic Development.

The purpose of the Value Added Sub Fund (VASF) is to make loans for agricultural development, feasibility studies, or marketing studies for new innovative agricultural development projects. The program assists with financing feasibility or business studies that will encourage or enhance agricultural development. Use of funds: feasibility or business studies for ag development technology. Terms: 0% interest; flexible repayment.



- Applicants proposing new, innovative agricultural development projects.
- Projects must develop or promote value-added agriculture in South Dakota, such as the production, use, or processing of an agricultural commodity, product, or by-product in the state.
- Applicants may request a loan for no more than 45 percent of total project costs for study expenses.
- Applicants must provide an equity contribution of at least 10 percent of total project costs for the marketing or feasibility study.

Certification

Distribution

Diversification

Events

Trade Show

Certified Organic

Trade Relief

Legal & Finance

This is a loan, not a grant, and SDGOED publishes its headline terms as just two items: "0% Interest; Flexible Repayment." No repayment schedule, term length, origination fee, or collateral requirement is published, and no maximum or minimum loan amount in dollars is published anywhere on the program page.

Size is capped as a share of project cost rather than a dollar figure. The VASF application's evaluation criteria state: "An applicant may not apply for a loan for more than 45% of the total projects cost for study expenses."

Applicant equity requirement. "An applicant must provide an equity contribution of at least 10 percent of the total project costs for marketing or feasibility studies expenses."

What counts toward your match. "Matching funds may include cash spent, or in-kind services rendered, on behalf of this project by the applicant after board approval of the application" — note the timing: spending before board approval does not count.

Who decides, and on what. "only the REDI board may make an award from the program to an applicant." Because it is credit, the board weighs repayment capacity explicitly: "The capacity of the applicant to repay a loan if awarded, including the amount of the loan, the economic feasibility of the project or product; the ability of the applicant to service the debt from cash flow of operations, capital or collateral; the review of the financial status of the project, business plan, and applicant." It also considers "The terms and conditions of the loan, if awarded, and compatibility with the needs of the business of the fund," which means final terms are negotiated case by case rather than fixed.

What the money may fund. Feasibility or business studies for agricultural development technology — the loan finances the study, not construction or operations.

List of South Dakota Governor's Office of Economic Development (SD GOED) Funding Opportunities