The Board of Economic Development is set to launch its four new economic development programs on July 1.
The programs are a result of SB 235, which was passed by the state legislature earlier this year. The new legislation, frequently referred to as the “Building South Dakota” legislation, focuses on education, housing, infrastructure, local economic development efforts, and large and small project needs.
“With the passing of SB 235, the board has created four new programs – the Economic Development Partnership Fund, the Local Infrastructure Improvement Grant Fund, the Reinvestment Payment Program, and the South Dakota Jobs Grant Program,” said Pat Costello, commissioner, Governor’s Office of Economic Development. “These programs are the direct result of bi-partisan efforts to boost economic development in South Dakota.”
The Economic Development Partnership Program provides for grants to non-profit development corporations, municipalities, counties, or other political subdivisions on a matching basis to fund new staff, elevate existing part-time staff, commence or replenish local revolving loan funds, and for equipment and training needs for the purpose of developing or expanding local, community, and economic development programs.
The Local Infrastructure Improvement Grant Program provides for grants to political subdivisions or local development corporations to construct or reconstruct infrastructure for the purpose of serving economic development projects.
Both of these programs will accept the first round of applications July 1-31.
The Reinvestment Payment Program, which will accept applications on an ongoing basis, provides for reinvestment payments to projects in excess of $20 million or with equipment upgrades in excess of $2 million.
The reinvestment payment awarded may not exceed the actual South Dakota sales/use tax paid on the project and awards are intended for projects that wouldn’t have occurred without the reinvestment payment.
The South Dakota Jobs Grant Program, which is funded by the 5 percent of the Building South Dakota Fund allocated to the Revolving Economic Development and Initiative Fund for projects less than $20 million will also accept application on an ongoing basis.
This program is the inverse of the Reinvestment Payment Program and provides for grants to projects less than $20 million or with equipment upgrades less than $2 million.
“These new programs are going to be great for economic development in South Dakota, said Costello. “We are looking forward to using these new tools to continue to create jobs and foster business development within the state.”
For more information on the programs, please visit www.sdreadytowork.com.