Financing & Incentives

Webster Area Development Corporation was created to facilitate economic growth in the Webster Area (Day County) by bringing new businesses to our area and working with existing businesses interested in expansion.

Currently, we work hand in hand with the Governor’s Office of Economic Development, Dakota Resources, North East Council of Governments, GROW South Dakota (also known as NESDCAP and NESDEC) and many other state, local and private groups to secure financing, business plans, structure and expansion for business wishing to start, relocate or expand in our area. 

WADC has its own revolving loan fund as well thanks to funding through USDA Rural Development. We can provide low-interest, long-term loans to new or exisiting businesses in Day County. Contact us for more information.

We believe the Webster Area is the best place to be in business and we look forward to working with you. Contact our office today at 605-345-3159 or email us.


Save Money

National surveys consistently show South Dakota as a location where companies save money in the cost of doing business. From lower taxes to among the lowest in workers compensation rates, Day County can add dollars to your bottom line. 

The business climate in Day County is ideal for growing your business. In addition to an extremely favorable mixture of low taxes with high-quality state and municipal services and facilities, you will pay:

NO State Corporate Income Tax
NO Business Inventory Tax
NO Personal Income Tax
NO Personal Property Tax
NO Inheritance Tax


Say "NO!" To Taxes and "YES!" to Webster Area!


Pro-Business Climate

Along with low and no taxes, South Dakota's business climate and ease of doing business puts you in touch with the state's leaders and helps you get things done by minimizing the red tape.

Our successes speak for themselves:


SubjectRankYearSourceLink

Tax Revenue -
Least Volatility


12017Pew Charitable Trustspewtrusts.org

Best States For Business -
Business Costs


12016Forbes Magazineforbes.com

Enterprising States - Business Climate

12015US Chamber of Commerce Foundationuschamberfoundation.org

American Dream Composite Index

12017Xavier Universityamericandreamcompositeindex.com

America's Top States for Business -
Business Friendliness


22016CNBCcnbc.com

Small Business
Policy Index


32017Small Business & Entrepreneurship Councilsbecouncil.org

Gallup-Healthways   Well-Being Index

32016Gallup-Healthwayshealthways.com

Tax Freedom Day

42016Tax Foundationtaxfoundation.org

Camelot Index 

62016State Policy Reports, FFISffis.org

Entrepreneurial
Activity Among
Small States


92016Kauffman Foundationkauffman.org



Property Tax Abatement

Day County has an ordinance that allows new industrial structures or additions to existing industrial structures to be taxed at a lower rate. This abatement ordinance results in a savings of property tax normally paid during the first five years following construction. The following chart illustrates the percentage of taxable value used through the first five years.
Years Following Construction
Percent of Taxable Value Used
1st
--
2nd
20
3rd
40
4th
60
5th
80
6th Plus
100


Work Opportunity Tax Credit (WOTC)

Designated as a Rural Renewal County by the U.S. Department of Labor and Regulation, Day County offers employers hiring workers that are between the ages of 18 but not yet 40 a Tax Credit of up to $2,400. This is a very important program that all employers need to be aware of and utilize for offsetting the costs of hiring, training and keeping new employees.


Resources & Finance Programs

At a Glance

REDI Fund: Revolving Economic Development & Initiative (REDI) Fund provides up to 45 percent of a project's total cost. Companies should secure interim (construction) financing, matching funds for permanent financing,  and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.

SD Capital Investment Fund: Dakota Resource's Capital Investment Fund (CIF) builds financial capacity of South Dakota's economic development corporations and revolving loan funds that finance local development projects.

NECOG: Northeast Council of Governments (NECOG) is an association of city and county governments formed to provide technical and professional assistance to promote and assist in the funding of small business start-ups, purchase of existing businesses, and expansion of businesses which, in all three instances, will create new or retain current jobs.

GROW SD: GROW South Dakota (also known as NESDCAP and NESDEC) provides affordable business financing to both new and existing businesses to purchase inventory, equipment or real estate. In addition, the state-wide organization provides home loans, home repairs, homeownership and financial education, weatherization, emergency services, and more.

EDFA Bond Financing - South Dakota's Economic Development Finance Authority (EDFA) offers a pooled loan program designed for more capital intensive projects, provides small businesses access to larger capital markets for tax-exempt or taxable bond issuances. 

SBA 504: The SBA 504 loan program offers subordinated, fixed rate financing to healthy and expanding small businesses. Long-term, fixed rate financing (10-20 years) and reasonable rates (near long-term U.S. Treasury bond rates), make the 504 Program an attractive and effective economic development financing tool.

APEX: The Agricultural Processing and Export (APEX) Loan Program is designed to assist companies in communities with a population of 25,000 or less, which add value to raw agricultural products through processing, or export a minimum of 75 percent of its product to entities outside the State of South Dakota or replace an import. The program is open to for-profit businesses and local economic development corporations.

MicroLOAN SD: The MicroLOAN South Dakota Loan Program is a partnership with the South Dakota Development Corporation, and Governor's Office of Economic Development. These loans are made available to small businesses within the borders of South Dakota and South Dakota residents, including main street and retail operations, for working capital, equipment, real estate or other fixed asset project costs.

Value-Added Ag Subfund: In 1999, a $3 million fund was created specifically to assist in funding feasibility and marketing studies for prospective value-added ag business. This Subfund of the REDI Fund is just one step toward improving value-added ag in South Dakota. By partnering with the Department of Agriculture, local communities, commodity organizations and others, the Governor's Office of Economic Development and will work with you to take your project from conception to completion. 

REED Fund: Rural Electric Economic Development (REED) Fund is a non-profit tax-exempt 501(c)(3) corporation, formed through the collaboration of rural electric cooperative members of East River Electric Power Cooperative, Inc. REED serves in eastern South Dakota and western Minnesota.The REED Fund offers financing for business development and for projects involving infrastructure and quality-of-life elements necessary to assist rural communities to retain, develop and attract businesses.

ITC REDI Fund: In 2000, Interstate Telecommunications Cooperative (ITC) established its Telecom Economic Development Revolving Loan Fund. This program provides low-interest loans to businesses and communities for the purpose of adding value, employment, and rural community opportunities. Proposals may include healthcare, environmental, educational and safety projects.

First Children's Finance Program: First Children’s Finance has designed a special loan program to help start, strengthen or expand child care center in homes, centers or schools. The program focuses on improving the quality, accessibility, and sustainability of the child care business through loans up to $125,000.


Ethanol Infrastructure Incentive Program: The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps. South Dakota Governor’s Office of Economic Development is now accepting applications for $960,000 in funding for the Ethanol Infrastructure Incentive Program for the 2013 fiscal year. 

Tourism Enhancement Program: The Tourism Enhancement Program is earmarked specifically for feasibility studies and marketing of value added tourism projects. This fund is another big step toward growing tourism in South Dakota.

SD Works: The South Dakota Works program provides business/commercial loans for businesses needing working capital. Eligible businesses or certified community development financial institutions can receive between $20,000 to $1 million during a 1-5 year term.

Workforce Development Program: This program offers access to dollars to help train new AND existing employees.

Proof of Concept Fund: The Proof of Concept Fund provides up to $25,000 investments for eligible applicants to conduct research demonstrating the technical and economic feasibility of an innovation significantly enhancing the likelihood of commercialization of the innovation. Eligible applications may include entrepreneurs, universities, existing South Dakota companies, or other entities committed to commercializing the results in South Dakota.

Reinvestment Payment Program: The Board of Economic Development may provide reinvestment payments to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.  The program allows for project owners to receive a reinvestment payment, not to exceed the South Dakota sales and use tax paid on project costs, for new or expanded facilities with project costs in excess of $20,000,000 or for equipment upgrades with project costs in excess of $2,000,000.

SD Jobs Grant Program
: The Board of Economic Development may provide grants to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.  The program allows for project owners to receive a South Dakota Jobs Grant for new or expanded facilities with project costs less than $20,000,000 or for equipment upgrades with project costs less than $2,000,000.

Dakota Seeds Program: The Dakota Seeds Program can provide 50% of the intern’s wages with a maximum of $2000 per intern. Internships must relate to a high need industry sector, including science, technology, engineering, mathematics, manufacturing, and accounting. Both high school and college students are eligible.

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