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Are you looking for South Dakota’s best business loans & startup financing companies? For your small business in the Mt. Rushmore State, many banks, credit unions, and unconventional lenders are offering different loan types. After all, South Dakota ranks #1 in the list of America’s topmost states with family-owned businesses, showcasing its potential for entrepreneurship.

Understand the unique features and benefits of different loan types to empower your business. That’s how you can choose the best lender for your business. Keep in mind that different loan providers cater to the needs of more than 90,000 small firms in this US state.

Consider these 12 business loans & startup financing options in S. Dakota to get started:

1.  Swoop Funding

Swoop Funding is every South Dakota-based small company’s top startup financing option. It will offer entrepreneurs a range of funding solutions to meet their needs. You can access many loan types, including traditional term loans and innovative financing options with a simplified funding process. Swoop Funding is the #1 lender in both North Dakota and South Dakota.

2.  Highmark Credit Union

The interest rate here is 5.18% (on average). Also, the median loan amount approved by South Dakota’s premium lender is $109,000. Whether you need purchasing, financing, reconstructing, or something else, Highmark has your mark.

3.  Byline Bank

This lender offers you an interest rate of 5.90%, with the average payout amount being $1.783 million. However, they offer financing from $10k to $3 million to businesses in Illinois, Wisconsin, South Dakota, and other states. If you apply for express loans, you need at least a FICO score of 625+.

4.  First Western Bank & Trust

At First Western, you can get ample funding for various business loans. Whenever you’re faced with critical capital expenditures, you can utilize this lender’s services to cover all sudden expenses. This lender’s working capital loans will help you keep your business on track.

5.  First National Bank in Sioux Falls

You can get in touch with this lender to get an average sum of $151,000 as a loan. The interest rate is 5.20%. Also, the First National Bank in Sioux Falls offers you flexible terms, such as:

• Lower down payments
• Long-term fixed rates
• Longer term loans

6.  Black Hills Federal Credit Union

At Black Hills FCU, you can get a loan payout of $371,000 (on average) with an interest rate of 5.58%. So, BHFCU should be your go-to business loan & startup financing option if you run a business in South Dakota.

7.  First National Bank

The average interest rate of this lender is pretty low (4.73%). However, the approved amount is usually between $190k and $200k. You can utilize First National Bank’s SBA 7(a) loan program to get money for:

• Acquisition, expansion, renovation, or construction
• Purchase Equipment & Machinery
• Working Capital
• Business Acquisition

8. First Union Lending

This lender focuses on helping businesses situated in Rapid City, South Dakota. In the words used by First Union Lending on their webpage, they offer “short-term loans, lines of credit, long-term loans, commercial property loans, debt consolidation, bridge loans, credit card processing, health care provider, equipment financing, invoice factoring, and SBA loans among other financing solutions.” As a major tourist attraction close to Mount Rushmore, this city has a lot of business potential. So, First Union Lending helps local businesses get the financial support they need with minimal paperwork required.

9. Security Savings Bank

Here’s another lender that can help your business grow with hefty loans that come with local decisions, flexible terms, competitive rates, and various loan types. This way, you can stay ahead of the competition and make a meaningful impact in South Dakota’s business landscape.

At Security Savings Bank, you get term loans, SBA loans, commercial loans, etc. You may also open a new line of credit to make sure that you have access to the necessary funds for day-to-day business tasks. One branch of this lender is in Canton, SD, but SSB also has branches in other locations and even states throughout the US.

10. Security National Bank of South Dakota

As the name indicates, the Security National Bank of South Dakota helps local businesses get the necessary loan amount to pursue their entrepreneurial goals. The loan amount varies from $250k to $8 million depending on your creditworthiness and your startup’s financial projections. Terms oscillate between 12 and 180 months (depending on how big a loan you’re getting). Also, the interest rate goes from 1% to 15%. So, get in touch with this lender if you need a loan with very clear-cut terms & conditions.

11. Sentinel Credit Union

This lender empowers local businesses with the financial tools they need to thrive. Whether you need extra funds to manage day-to-day expenses or start a new company altogether, Sentinel Credit Union has your back. You can get commercial lending, agricultural lending, real estate loans, equipment financing, and much more via this lender. The services of this generous lender are available in multiple locations in South Dakota, such as Pennington, Lawrence, Meade, Custer, Lyman, Todd, Tripp, Gregory, and Mellette Counties.

12. West River Revolving Loan Fund

If you own a small business in Western South Dakota, then get in touch with the Western River Revolving Loan Fund’s services to get started. This lender focuses on helping the meat & poultry industries in South Dakota. Many small businesses in rural South Dakota aren’t eligible to get financing via traditional means. However, WRRLF makes sure that monetary restrictions don’t prevent the growth of rural development of South Dakotan businesses. So, WRRLF funds up to 75% of a project. Max $250,000. If you need more information, get in touch with them via their website or visit their Rapid City office.

South Dakota Government Resources

Check out these government resources about business grants/funding and startup financing options in S. Dakota:

• Business Startup Resources in Sioux Falls, South Dakota
• Rural Business Development Grants in South Dakota
• South Dakota – Governor’s Office Of Economic Development

Top Cities in South Dakota for Business Loans

Curious to know which cities, towns, municipalities, or census-designated places (CDPs) in S. Dakota are the best for business loans & startup financing? If you live in any of these 30 cities, then you can easily access SBA loans or other nontraditional financing means to embark on your entrepreneurial journey:

1. Sioux Falls
2. Rapid City
3. Aberdeen
4. Brookings
5. Mitchell
6. Pierre
7. Huron
8. Yankton
9. Watertown
10. Spearfish
11. Sturgis
12. Brandon
13. Deadwood
14. Lead
15. Box Elder
16. North Sioux City
17. Hill City
18. Custer
19. Vermillion
20. Madison
21. Martin
22. Flandreau
23. Winner
24. Belle Fourche
25. Plankinton
26. Canistota
27. Garretson
28. Parker
29. Chamberlain
30. Dell Rapids

Conclusion

Whether you’re a startup owner or founded a well-established business years ago, you have to choose the right financing partner and lender. That’s how you keep your business vessel afloat and key commercial operations running in Mount Rushmore State. Also, look into no-credit equipment financing options if you can’t get a business loan via traditional means.

Choose a reliable lender that offers you flexible loan terms and interest rates. Check their online reputation, customer service, interest rates, and other factors. If nothing makes sense, get in touch with us at Sophisticated Investor to understand how to get your entrepreneurial dreams funded quickly.