Livestock Nutrient Management Bond

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.

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.

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