New Business Financing

INCENTIVES In Hill City


When the time comes to take your dream business, build a foundation for it to rest on, and turn it into a reality, who do you want to have your back?  The Heart of the Hills Economic Development Corporation (HOHEDC) has forged many long and lasting partnerships with organizations and financial institutions that can help you realize your dream. Each is trusted and time-honored with its own individual approach to financing.

Highly qualified and experienced professional loan officers, financial packagers, and development specialists are at your disposal when you decide to turn your blueprints and business plans into bricks and mortar, clients, customers, and sales. The HOHEDC understands that available financing is critical for your company to take hold, grow, and prosper. Likewise, our business financing programs and incentives are designed with you and your business in mind. Check out these programs, from revolving loan funds to workforce development grants. There may be one that's right for you.

RURAL BUSINESS AND COMMUNITY DEVELOPMENT

The USDA rural development program provides much needed loans and grants to businesses and community programs in rural areas. Under this program, the USDA provides financial assistance for business loans and grants that are aimed to stimulate rural economies by creating businesses, jobs, community facilities and partnerships.

Loans can be obtained for the development of hospitals, libraries, schools, fire and police stations, and community centers. The USDA also offers much needed assistance to rural public utility programs helping companies provide rural areas with essential utilities, such as water, electricity, waste management, and telecommunications. The USDA is committed to the development and economic prosperity of rural areas across the United States, and assuring that rural communities receive the same financial assistance as larger towns and cities across the United States.

SOME OF THE AVAILABLE PROGRAMS


  • Renewable Energy systems & Energy Efficiency improvements program (reap)


    Provides financial assistance in the form of grants and guaranteed loans to agricultural producers and rural small businesses for purchasing and installing renewable energy systems and making  energy efficiency improvements.


  • Value-Added Producer program


    The VAPG program helps agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program. You may receive priority if you are a beginning farmer or rancher, a socially-disadvantaged farmer or rancher, a small or medium-sized farm or ranch structured as a family farm, a farmer or rancher cooperative, or are proposing a mid-tier value chain. Grants are awarded through a national competition. Each fiscal year, applications are requested through a notice published in the Federal Register and through an announcement posted on Grants.gov.

Tax Incentives

Our per capita state taxes are some of the lowest in the country. We also have one of the lowest rates for unemployment insurance and worker's comp insurance.

South Dakota has many tax advantages including:


  • No Personal Income Tax
  • No Corporate Income Tax
  • No Personal Property Tax
  • No Business Inventory Tax
  • No Inheritance Tax

Corporate Income Tax


South Dakota has long held the stance that you should be able to keep the money you make. In keeping with that philosophy, South Dakota does not tax corporate or personal income.

Personal Income Tax


South Dakota's business climate favors both employer and employee alike. And the small business owner finds the South Dakota business climate unequalled anywhere else. Just as South Dakota does not tax corporate income, South Dakota does not tax personal income.

Tax Refund


A tax refund (sales, use and contractors' excise taxes) is available for new and expanding businesses with project costs exceeding $10 million.

A refund of retail sales and service tax, use tax, and contractors' excise taxes is also available for taxes attributed to the construction of a new or expanded facility, constructed for the processing of any form of agricultural commodity, product or by-product. Project costs must be a minimum of $4.5 million.

Overall State per Capita Taxation


South Dakota has the lowest state per capita taxes in the nation.

Business Inventory Tax


South Dakota does not tax business inventories. South Dakota does not impose a state property tax. In addition, South Dakota has not taxed personal property since 1979.

Personal Property Tax


South Dakota has not taxed personal property since 1979. In South Dakota, the only property taxes you pay are local taxes on real property, land and buildings.

Excise Income Tax


$0-$400,000,000 6%
$400,000,000-$425,000,000 5%
$425,000,000-$450,000,000 4%
$450,000,000-$475,000,000 3%
$475,000,000-$500,000,000 2%
$500,000,000-$600,000,000 1%
$600,000,000-$1,200,000,000 0.5%

Other Incentives for New Business

Unionization


Companies moving to South Dakota experience an increase in productivity, a decline in personnel problems and an unprecedented dedication and loyalty to business. South Dakota has the 7th lowest unionization membership in the nation.

Unemployment Insurance


Unemployment insurance rates are compared for 2007/2008. South Dakota has the lowest unemployment rate in the nation, so there is little impact on the unemployment insurance fund and no demand for cost increases here.

Educational Attainment


Quality schools that produce quality workers is a trademark of South Dakota. The state boasts a 79.9% graduation rate.

Student per Computer Ratio


Preparing students for today's world of work means giving them a technological advantage. South Dakota is building its workforce for today and tomorrow. South Dakota leads the nation in the student-to-computer ratio.

Index Crimes per 100,000 Population


A comparison of crime rates in all 50 states reveals that South Dakota had the lowest property crime rate and the 5th lowest violent crime rate in the nation in 2006.

Read more about the Hill City Advantage

West River Business Service Center The West River Business Service Center (WRBSC)


WRBSC is the Heart of the Hills Economic Development’s  (HOHEDC) direct connection for success in  community development in both planning and execution. As economic development specialists for the region, the WRBSC provides professional and confidential one-on-one business consulting at no cost to entrepreneurs in western South Dakota. The WRBSC also has information on current loan opportunities available from many sources.  They work with state representatives from the USDA Rural Development.


Looking for Financing?


HOHEDC was awarded a Rural Business Enterprise Grant that provides loan money for rural projects that finance and facilitate development of small and emerging rural businesses. Interested businesses with sound viable business plans and development ideas in the Hill City area are encouraged to speak to our leadership about opportunities and sources of funding that might be available.

“This institution is an equal opportunity provider, employer and lender.”

“If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.aser.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form.  You may also write a letter containing all of the information requested in the form.  Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, DC 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov.”

Rural Development Equal Opportunity


USDA prohibits discrimination on the basis of race, color, religion, sex, age, national origin, marital status, sexual orientation, familial status, disability, limited English proficiency, or because all or part of an individual’s income is derived from a public assistance program.  In programs that receive Federal financial assistance from USDA, discrimination is prohibited on the basis of race, color, religious creed, sex, political beliefs, age, national origin, or limited English proficiency. (Not all bases apply to all programs.) Reprisal is prohibited based on prior civil rights activity.”

“This institution is an equal opportunity provider, employer and lender.”

 

International Symbol of Access