There are a number of financial incentives available to companies expanding in Aberdeen, South Dakota, both at the state and local levels. The total funds available from each program varies but typically is based on overall project costs, the company’s participation, number of jobs created, usage of funds, financial review, etc. If you’d like to learn more about any of these programs and how they can be used to assist with your business expansion or relocation to Aberdeen, please contact us.
Aberdeen Revolving Loan Fund
3% to 5% interest rate with a 5-year balloon, exact terms set by the Aberdeen Development Corporation Board of Directors.
Business Start-Up Fund Program (BSFP)
The Aberdeen Downtown Business Start-Up Fund Program is to create a spirited business mix in downtown by sustaining new retail concepts. The program is only available to new businesses in the Business Improvement District (BID) that will be providing new and underserved products and/or services. Financial assistance is available to help with the first years rent.
State of South Dakota Revolving Economic Development Initiative Loan Fund (REDI)
Up to $10,000 per job or 45% of the total project costs, amortized over 20 years, 3% interest rate with a 5-year balloon, exact terms set by the South Dakota Board of Economic Development.
Rural Electric Economic Development Fund (REED)
10% to 50% of total project costs, 5% to 9% interest rate, and exact terms set by REED Board.
Northeast Council of Governments (NECOG)
$250,000 maximum, 4% to 5% interest rate, exact terms set by NECOG Board of Directors.
Northeast South Dakota Economic Corporation (NESDEC)
$150,000 maximum, 5% to 9% interest rate, exact terms set by NESDEC Board of Directors. Also known as GROW South Dakota.
Labor Training Cost Reimbursement
50% of actual training costs with minimum wage of $10.50 per hour, payment made after training occurs, exact terms set by the State of South Dakota.
Tax Increment Financing (TIF)
South Dakota Law provides for certain infrastructural improvements to be bonded up to 20 years for qualified TIF Districts. Future property tax payments are used to retire the bonds.
Discretionary Property Tax Relief
Brown County provides property tax relief for new industrial development. The relief is for 5 years and graduates the property taxes from 0% for the first year to 100% for the 5th year in 20% increments. This incentive CANNOT be used in conjunction with a TIF.