South Dakota small business lenders offer the funding companies need to grow by providing access to capital.
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Biglaw Investor connects you with small business lenders who can help you expand your business, whether through working capital or via acquisition. A small business loan loan is a great way to grow your business—but it can be hard to know where to start. Our small business lenders offer an experience specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your business needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
South Dakota is named for the Lakota and Dakota Sioux Native American tribes and is a beautiful state in the north central region of the country. It’s known for many things, including its expansive natural landscape. It is home to Mount Rushmore, which is the largest tourism destination in the state. For those that live here, the area is best known for the Black Hills, the gold rush, and the area’s agricultural industry. The largest city is Sioux Falls, which is the largest metro area in the state as well. Pierre is the capital. With an overall population of under 900,000 people, South Dakota is mostly rural with wide open lands.
When it comes to its economy, a large component of it is dependent on tourism, but the largest industries are related to agriculture, including the growth of cattle, wheat, and hogs. The state also has a large service industry, including banking, retail, and healthcare industries. Though these large businesses are critical to the state, nearly 20% of the people of the population work for small businesses here. There are 90,274 small businesses within the state that provide jobs for 208,353 people in the state. They generate payroll for those employees of $8,045,521, according to the U.S. Small Business Administration. There is no doubt that many people are dependent on these small businesses.
There are a lot of benefits to starting and growing a business in South Dakota, but at the heart of the process is the state’s availability of small business loans. The U.S. Small Business Administration’s data shows that states there are 766 small business loans active in South Dakota, providing a total loan value of $456,461,160. The average loan size here is $595,902, which can be used for many needs, from the expansion of the company to purchasing equipment or hiring more employees.
A small business loan is one created for a smaller company, which is typically one that has under 100 employees. These loans are a type of capital infusion that many businesses need to help ensure they have the ability to expand, meet financial needs, market, or simply operate with the best equipment available. Small business lenders in South Dakota offer loans to companies based on their ability to repay the funds, often providing highly competitive loan offers. They are taking on risk in providing these loans, which is why lenders will require repayment of the borrowed amount with interest.
The amount of interest small business loans have depends on the amount of risk present, as well as other factors. Most often, South Dakota small business lenders will require borrowers to provide a great deal of information outlining the type of industry they are in, the business management and ownership structure, as well as a core look into the company’s financials. Lenders nearly always need to see profit and loss statements and balance sheets to determine how much they can lend based on how much revenue the company generates and has available to repay the loan.
Other factors can play a role in the cost owners pay for these loans. For example, there are numerous types of loan structures available, some of which are backed by the federal government, reducing their interest rates and making them a bit easier to obtain for qualified borrowers. Other loans are based on assets, such as equipment financing, which is used to help cover the cost of new equipment. For those owners or businesses with a strong credit history, lenders may offer a business line of credit as another option, providing ongoing borrowing power.
Some of the most common small business loans in South Dakota include:
In the early phases of your company, such as startup, you’ll probably need your own funds to get things started. Most lenders require that you’ve been in business for awhile, and even nonprofit grants want to see some proof of concept. Before digging in to business financing, most entrepreneurs see if they meet eligibility requirements for small business grants or credit cards. Of course, these funds are usually limited and may not be low-interest, especially in the case of credit cards. Your local office of economic development or small business development center may be able to recommend some other avenues to you, too in the state of South Dakota.
Small business lenders range widely themselves. Some are traditional banks and credit unions, while others are private lenders or specialized lenders. South Dakota business owners have a range of opportunities to work with well-qualified lenders who can offer flexible loan terms, generally between 5 and 10 years, and competitive interest rates on funds that can be used for many things.
| Rank | Bank Name | # of South Dakota Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | Black Hills Credit Union | 20 | 5.58% | $371,130 |
| 2 | The First National Bank in Sioux Falls | 20 | 5.20% | $151,375 |
| 3 | First National Bank | 15 | 4.73% | $193,007 |
| 4 | Highmark Credit Union | 12 | 5.18% | $109,058 |
| 5 | Red River State Bank | 8 | 4.63% | $1,077,700 |
| 6 | Wells Fargo Bank | 8 | 6.78% | $706,425 |
| 7 | Pioneer Bank & Trust | 7 | 5.61% | $196,814 |
| 8 | Byline Bank | 5 | 5.90% | $1,783,200 |
| 9 | First Interstate Bank | 5 | 4.55% | $680,740 |
| 10 | Minnwest Bank | 5 | 5.60% | $272,400 |
Black Hills Credit Union provides a number of services for its members in South Dakota from its 11 branch locations. Offering a number of products and services to help its customers meet their financial needs, Black Hills Credit Union helps with loans, savings, checking, and asset protection.
We reached out to Black Hills Credit Union to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Starting to serve the Sioux Falls area in 1885, First National Bank in Sioux Falls came into existence with the goal of serving the community through service, stability, and innovation. Now with 18 locations, First National Bank in Sioux Falls can meet the needs of its customers.
We reached out to First National Bank in Sioux Falls to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in Pierre, South Dakota, in 1934, First National Bank has been working with the community for over 100 years with 17 locations in South Dakota and Colorado. First National Bank is able to provide a number of products to its customers, including business and agriculture loans.
We reached out to First National Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Formed in 1940 in Rapid City High School, Highmark Credit Union started a credit union for the teachers out of a janitor’s closet. Since then, the Highmark Credit Union has grown to include all members of the Black Hills region of South Dakota to meet their banking needs.
We reached out to Highmark Credit Union to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Red River State bank started in 1887 as the First State Bank of Fertile in Minnesota. Now with two locations to meet the needs of its customers, Red River State Bank can provide products and services, including business and agricultural loans as well as personal banking products and services.
We reached out to Red River State Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
As a small business owner, it can be beneficial to have a trusted professional to talk to about your business concerns or guidance when making big financial decisions. There are some free resources for businesses in South Dakota worth checking out for this purpose.
The Small Business Administration in South Dakota is one of those resources. You can visit the actual locations throughout the state or use their website for training programs, help with federal contracting certification, get guidance on establishing a business, and even take some courses to help you financially manage your company.
Another free resource is SCORE, an organization that offers a way for small business owners in South Dakota to connect with successful company owners and other resources for advice and guidance. It is possible to be connected with mentors, for example, who can help with the building of the business by providing free advice. In addition to this, there are numerous workshops and organizational opportunities to grow your company with the support of experienced professionals.
If you want to find the best small business loans in other states, click on your state below.
Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
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