From October 2023 through September 2026, South Dakota businesses received 387 SBA 7(a) loans totaling $188M, net of cancellations. That ranks 49th of 52 by number of loans and 48th by dollars. The median loan was $154K at a median starting rate of 9.00%. In FY2026 alone, lenders approved 115 South Dakota loans for $60.7M before cancellations.
What stands out in South Dakota
Lower rates than average
The median starting rate on South Dakota 7(a) loans was 9.00%, against 10.25% nationally, and 41.9% of loans carried a fixed rate (13.6% nationally). SBA caps the spread a lender can charge over the base rate, and smaller loans are allowed higher spreads, so a state's loan-size mix moves its median rate.
Heavy use of SBA 504
South Dakota had 225 SBA 504 loans, 0.58 for every 7(a) loan, against 0.10 nationally. The 504 program finances owner-occupied real estate and long-life equipment through a certified development company; in South Dakota the most active was Dakota Business Finance (116 loans).
More startup lending
Loans to open a new business made up 24.3% of South Dakota's 7(a) loans, against 16.1% nationally; counting businesses two years old or younger, the share is 46.3%.
Lots of business purchases
14.0% of South Dakota 7(a) loans financed a change of ownership, that is, buying an existing business, against 10.9% nationally. If you are planning an acquisition, South Dakota lenders see this kind of deal often.
What a typical South Dakota SBA loan looks like
| FY2024-FY2026, not cancelled | South Dakota | United States |
|---|---|---|
| Median loan | $154K | $175K |
| Average loan | $486K | $508K |
| Median starting rate | 9.00% | 10.25% |
| Variable-rate loans | 58.1% | 86.4% |
| Median term | 120 months | 120 months |
| Loans of $150K or less | 49.9% | 49.0% |
| Loans of $500K or less | 75.2% | 76.9% |
| Loans of $1M or more | 12.4% | 13.6% |
| Startups (loan opens the business) | 24.3% | 16.1% |
| Startups and businesses 2 years old or less | 46.3% | 32.0% |
| Change of ownership (buying a business) | 14.0% | 10.9% |
| Franchise businesses | 11.9% | 11.0% |
| SBA Express loans | 31.3% | 35.8% |
| Jobs supported (reported at approval) | 3,474 | 1,733,816 |
SBA 504 loans in South Dakota
The SBA 504 program finances owner-occupied real estate and long-life equipment. A certified development company (CDC) lends up to 40% of the project with an SBA-backed debenture, a bank typically lends about 50%, and the business puts in the rest. The amounts below are the CDC portion.
| South Dakota | United States | |
|---|---|---|
| 504 loans, FY2024-FY2026 (not cancelled) | 225 | 18,076 |
| 504 dollars | $189M | $20.82B |
| Median 504 loan | $537K | $742K |
| Jobs supported (reported at approval) | 1,931 | 190,338 |
| Most active CDCs | 504 loans |
|---|---|
| Dakota Business Finance | 116 |
| South Dakota Development Corporation | 54 |
| Ally Dakota Development, Inc. | 50 |
South Dakota SBA 7(a) loans by fiscal year
SBA fiscal years run October to September, so FY2026 covers October 2025 through September 2026. "Approved" counts every loan SBA guaranteed, the basis of SBA's own published totals; "not cancelled" drops loans that were later cancelled before or after funding. FY2026 loans are recent, so some of them may still be cancelled.
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| Loans approved | 151 | 175 | 115 |
| Dollars approved | $62.1M | $84.0M | $60.7M |
| Loans not cancelled | 139 | 144 | 104 |
| Median loan | $133K | $150K | $257K |
| Median rate | 10.00% | 9.12% | 8.25% |
| Loans of $150K or less | 55.4% | 51.4% | 40.4% |
| SBA Express share | 32.4% | 34.0% | 26.0% |
FY2026 approvals in South Dakota changed by −34.3% from FY2025; nationally the change was −28.1%. See why SBA lending fell in FY2026.
Top SBA 7(a) lenders in South Dakota
| Lender | Loans | Share of state |
|---|---|---|
| 1. The First National Bank in Sioux Falls | 57 | 14.7% |
| 2. First Bank & Trust | 54 | 14.0% |
| 3. U.S. Bank, National Association | 39 | 10.1% |
| 4. Black Hills FCU | 28 | 7.2% |
| 5. Levo Federal Credit Union | 21 | 5.4% |
| 6. First Interstate Bank | 17 | 4.4% |
| 7. Northeast Bank | 13 | 3.4% |
| 8. Wells Fargo Bank National Association | 11 | 2.8% |
| 9. Pioneer Bank & Trust | 11 | 2.8% |
Industries that borrow most in South Dakota
| Sector | Loans | Share | Median loan | Median rate |
|---|---|---|---|---|
| Restaurants and hotels | 64 | 16.5% | $260K | 9.00% |
| Construction | 53 | 13.7% | $80K | 9.50% |
| Retail | 49 | 12.7% | $231K | 9.50% |
| Other services (repair, personal care) | 42 | 10.9% | $190K | 8.75% |
| Health care | 29 | 7.5% | – | – |
| Administrative and support services | 24 | 6.2% | – | – |
| Transportation and trucking | 24 | 6.2% | – | – |
| Manufacturing | 20 | 5.2% | – | – |
Where in South Dakota the loans go
| County | Loans |
|---|---|
| Minnehaha | 131 |
| Lincoln | 58 |
| Pennington | 57 |
| Brookings | 22 |
| Lawrence | 17 |
| Codington | 16 |
| City | Loans |
|---|---|
| Sioux Falls | 133 |
| Rapid City | 52 |
| Brookings | 20 |
| Tea | 18 |
| Watertown | 16 |
| Spearfish | 14 |
| Brandon | 11 |
Counts only, and only places with at least 10 loans. No individual businesses are listed.
How older loans performed
Of the 292 SBA 7(a) loans approved for South Dakota businesses in FY2020 and FY2021 (not cancelled), 11 had been charged off by September 30, 2026: 3.8% by count and 1.3% of dollars approved. The national figures are 3.7% and 1.0%. Loans from these years have had five to seven years to season, so they say more about losses than recent loans do.
SBA district office for South Dakota
South Dakota loans are overseen by the SBA South Dakota District Office. District offices do not make loans; they support lenders and borrowers and point businesses to local resource partners. Contact details are on SBA's local assistance page.
Comparing SBA and other funding in South Dakota
An SBA loan is often the cheapest long-term money a small business can get, but approval takes weeks and the 2025 and 2026 rule changes narrowed who qualifies. FSE (Funding Solutions Experts) is an independent commercial finance brokerage. We are not an SBA lender and are not affiliated with the U.S. Small Business Administration; one application lets us compare SBA and non-SBA options from our funding partners side by side.
- No fee to your business: we are paid a commission by the funding partner.
- No credit check to apply.
- To be considered, a business generally needs at least 1 year in business and $10,000 or more in monthly revenue.
Read what an SBA loan is and how the programs work or our SBA and term loans guide.
Frequently asked questions
How many SBA loans were made in South Dakota?
Lenders approved 151 SBA 7(a) loans for South Dakota businesses in FY2024, 175 in FY2025 and 115 in FY2026, before cancellations. Net of cancelled loans, the three years total 387 loans worth $188M, plus 225 SBA 504 loans worth $189M.
Which banks make the most SBA loans in South Dakota?
In FY2024 to FY2026 the most active 7(a) lenders in South Dakota were The First National Bank in Sioux Falls (57 loans, 14.7%), First Bank & Trust (54 loans, 14.0%), U.S. Bank, National Association (39 loans, 10.1%).
What is the typical SBA loan size and rate in South Dakota?
The median 7(a) loan in South Dakota was $154K and the average was $486K. The median starting interest rate was 9.00%, 58.1% of loans had a variable rate, and the median term was 120 months.
Source and method
Figures come from the U.S. Small Business Administration's 7(a) and 504 FOIA loan files (as of September 30, 2026), aggregated by FSE. Loans are assigned to South Dakota by project state. Profile figures cover FY2024-FY2026 loans that were not cancelled. We publish aggregates only: no borrower names or addresses, and no figure based on fewer than 10 loans. Full details are in the methodology, and every state's figures can be downloaded as CSV.
Compare nearby states by volume: Vermont, District of Columbia, North Dakota, Wyoming, or see all states.