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Financing

Participating with local lenders and the South Dakota Governor’s Office of Economic Development, we can assist you in finding the appropriate financing to help you open or expand your company in Watertown, South Dakota.

South Dakota REDI Fund
We give new meaning to the phrase “ready, willing and able.” Our REDI (Revolving Economic Development and Initiative) Fund is designed to help promote job growth in South Dakota and can help your business as it grows. This low interest loan fund is available to not only start-up firms, but also businesses that are expanding or relocating and local economic development corporations.

How it Works
The REDI Fund provides financial assistance up to 45 percent of a project’s total cost financing for the purchase of land and associated site improvements, construction, acquisition, and renovations of buildings. It also can be used to help cover fees, services and other costs associated with construction.

Find out more at the South Dakota GOED website:

At a Glance:

  • Currently 2% interest
  • Amortized over useful life of asset
  • 5 year balloon payment

Companies should secure matching funds and be able to provide a 10% minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.

SBA 504
The SBA 504 loan program is another attractive financing tool. This program offers subordinated, fixed rate financing to healthy and expanding small businesses.

How it Works
This program offers long-term, fixed-rate financing and is available for fixed-asset purchases including land, buildings, new construction and equipment with a useful life of 10 years or more. Another benefit of this program is that the participating lender receives first mortgage on the project.

Find out more at the South Dakota GOED website:

At a Glance:

  • Long-term, fixed-rate financing
  • Available to for-profit businesses
  • Subordinated to first mortgage lenders

The SBA 504 recognizes the financial risk of start-up businesses and single purpose facilities. If you’re interested in participating in the SBA 504 loan program, an equity injection of ten to twenty percent may be required over and above the initial ten percent equity injection requirement.

MicroLOAN
The South Dakota MicroLOAN Program is a partnership with the Board of Economic Development, South Dakota Development Corporation, and Governor’s Office of Economic Development. These loans are made available to small businesses within the borders of South Dakota and South Dakota residents–including main street and retail operations–for working capital, equipment, real estate or other fixed-asset project costs.

Find out more at the South Dakota GOED website:

At a Glance:

  • Small Business Loans
  • Maximum of $50,000
  • 3% Interest

Request More Info

The Watertown Development Company is a non-profit organization established to own and operate buildings, lands and development areas for the economic benefit of Watertown. Use the form below to send a message to our executive team and we’ll be sure to respond as soon as we can.
  • You can call us directly at (605) 884-0340 or toll free at 1-888-898-6767