The Best Business Grants in South Dakota

Securing capital is often the biggest hurdle for any founder. While loans and credit cards are common, they come with the weight of repayment and interest. Grants are the ideal alternative because they generally don't have to be paid back. However, there is a catch: grants are highly competitive and can be very difficult to find. We've built this guide to help you understand the grant landscape in South Dakota.

South Dakota's business grant landscape is pretty modest, reflecting the state's broader economic development philosophy of favoring tax incentives and revolving loans over direct grant funding. The South Dakota Office of Economic Development anchors state-level activity through two programs: the Proof of Concept Program, which awards up to $25,000 for research demonstrating the technical and economic feasibility of new innovations, and the Workforce Development Grant, which reimburses up to 50% of eligible training expenses for employees requiring additional skills. Rapid City complements these state programs with two distinctive small-dollar grants, including one of the country's first city-administered AI MicroGrants, providing up to $3,000 for small businesses implementing or integrating artificial intelligence into their operations. Award sizes range from $1,000 accessibility grants up to $25,000 for major proof-of-concept research projects, with all programs operating on rolling deadlines.

Beyond state agency grants, Rapid City is the only city in South Dakota with dedicated small business grant programs, running the AI MicroGrant and a Workplace Accessibility Grant supporting businesses making modifications for employees with disabilities. Businesses in Sioux Falls, Aberdeen, and other South Dakota communities will find fewer local options but can access the statewide programs above.

South Dakota businesses with international expansion goals should also explore the State Trade Expansion Program (STEP), the state-administered version of the federal STEP grant program. Administered by South Dakota Trade, STEP supports export development activities like trade missions, international marketing, and translation services for South Dakota-based small businesses pursuing overseas markets. STEP is one of the more meaningful funding options available to South Dakota businesses outside the dedicated state and local programs. For more information and details on where to apply, check out our grant page for the State Trade Expansion Program.

While South Dakota's state and local grant landscape is more limited than some larger states, South Dakota businesses are eligible for hundreds of national grant programs from federal agencies, corporations, and foundations that often offer larger award sizes and broader eligibility. Those programs aren't covered on this page, but you can search our complete grant database to see every state and national grant your business qualifies for. You can also join our free weekly newsletter to get new South Dakota grants delivered to your inbox as soon as they open.