South Dakota WORKS

Program Overview

• Business/commercial loans for businesses needing working capital

• Term of 1 to 3 years

• Loan amount up to $1 million with a minimum amount of $20,000

 Eligible Borrowers
Businesses seeking new financing
Certified development financial institutions
Meet US Treasury guidelines
Only have one WORKS loan program at a time for a company

Ineligible Borrowers

• Non-profits
• Speculative development
• Lending institutions, insurance companies
• Businesses engaged in pyramid sales
• Gambling concerns and private clubs
• Businesses engaged in activities prohibited by law

 Eligible Use of Funds
Business purposes including: start up costs, working capital, payroll, inventory needs and new construction loans

Ineligible Use of Funds

• Purchase, construction, renovation, or tenant improvements of an eligible place of a business that is for passive real estate investment purposes
• Refinancing purposes
• Repay delinquent federal or state income taxes
• Repay taxes held in trust or escrow
• Reimburse funds owed to any owner
• Purchase any ownership interest of any owner

 Structure
80% Bank or Private Debt
20% SD WORKS Loan

The Process
The application packet is submitted to GOED loan officer for review
SD WORKS loan review committee will meet to review the application once a month

Private Lender Participation
The bank or credit union must file all of the applicant’s documents they require, as well as all internal documents relating to the loan with the GOED, or the borrower needs to submit a SD WORKS application to the GOED

Collateral
Second on assets that banks or private lenders take as collateral

Fees
$100 application fee