Local governments and community organizations in South Dakota focus on attracting and supporting the growth of small businesses. For example, SCORE, which is staffed by volunteer retired executives, has several chapters located throughout the state to provide mentoring to aspiring entrepreneurs. In addition, the SBA has local advisors from its Small Business Development Centers located in several counties throughout the Mount Rushmore state to provide mentoring and advice for small businesses owners. The state offers its own Economic Development Corporation to connect South Dakota businesses with state-sponsored resources and information.

The South Dakota Jobs Grant Program provides grants to finance projects for relocating or expanding operations and equipment. These grants are intended to fund projects that would not otherwise have come to fruition for lack of private financing.

South Dakota business owners can also search at Grants.gov to check for availability of federally-funded grants.

The first step is to decide on your business structure. You can start out as a sole proprietorship, and you’ll need to register the name of the business with the county of operation. If you decide on a corporation or a Limited Liability Corporation (LLC), you need to register your company with the South Dakota Secretary of State. You’ll also need to check local and state regulations to see if you need any specific permits or licenses.

After taking care of the paperwork, you need to prepare the documentation that lenders typically require. For instance, you’ll need a business plan, projections of financial statements, and cash flow projections. Your financial projections should show why you need the loan and how you intend to pay it back.

The type of loan you’ll need depends on its purpose. If you’re looking to buy a piece of equipment, you’ll want a term loan or equipment finance with payments spread out over several years. If you need to finance temporary build-ups in inventory, then a revolving line of credit would be best. Online platforms like Lendio help you do this in just a few minutes—and at no cost to you.

Banks and nonprofit organizations in South Dakota want to provide funds to small businesses that increase economic activity in their communities. Everyone gains when new businesses start up and existing businesses expand and add more employees. The availability of funds for small businesses to finance their operations is critical for the growth of local economies.