Best South Dakota SBA Lenders & Rates (2026)
2025 FOIA data: top lenders, rates, industries & loan types in South Dakota
SBA Loans in South Dakota
South Dakota businesses received $84.0M in SBA 7(a) loan approvals across 175 businesses in 2025, supporting 1,617 jobs. With 41 active SBA lenders competing for business in South Dakota, comparing offers is essential — rates vary significantly by lender.
The average SBA loan in South Dakota is $480K at 9.62%, which is 0.7% below the national average of 10.32%. The top lender in South Dakota is First Bank & Trust, with the most-funded industry being Hotels (except Casino Hotels) and Motels.
SBA Loans in South Dakota by Business Type
Whether you’re starting a business, buying one, or expanding an existing operation in South Dakota, here’s how SBA lending breaks down:
Startups represent 8% of South Dakota SBA loans (31 loans totaling $6.8M). Business acquisitions (change of ownership) account for 31% (18 loans, $25.8M). Existing businesses make up the largest share at 44% (84 loans). If you’re buying a business in South Dakota, acquisitions are a well-established use case for SBA 7(a) loans.
South Dakota vs. National Average
How does South Dakota’s SBA lending market compare to the national average in 2025?
South Dakota9.62%
National Avg10.32%
✅ South Dakota’s avg rate is 0.7% lower than the national average
South Dakota$480K
National Avg$478K
South Dakota’s avg loan is 1x the national average
A rate lower than the national average of 10.32% is significant context for South Dakota borrowers. Individual rates depend on your credit profile, deal structure, loan size, and the specific lender you work with — which is why comparing multiple offers from different banks is consistently the best strategy to get the lowest possible rate on your SBA loan.
Top SBA Lenders in South Dakota (2025 Data)
The table below ranks every SBA 7(a) lender active in South Dakota in 2025 by total dollar volume approved. This data comes directly from SBA FOIA records and represents actual funded loans — not pre-qualifications or applications received.
| # | Lender | Volume | Loans | Avg Rate |
|---|---|---|---|---|
| 1 | First Bank & Trust | $14.0M | 23 | 9.28% |
| 2 | The First National Bank in Sioux Falls | $11.2M | 22 | 8% |
| 3 | Live Oak Banking Company | $5.5M | 3 | 8.83% |
| 4 | Dacotah Bank | $5.3M | 2 | 7.47% |
| 5 | Titan Bank, National Association | $5.0M | 1 | 8% |
| 6 | American Bank and Trust | $4.9M | 2 | 8.5% |
| 7 | Everwise Credit Union | $3.8M | 1 | 10% |
| 8 | GBC International Bank | $3.0M | 1 | 8.75% |
| 9 | Northeast Bank | $2.9M | 20 | 11.04% |
| 10 | CorTrust Bank National Association | $2.8M | 1 | 9.5% |
| 11 | Farmers State Bank of Alto Pass, Illinois | $2.2M | 1 | 9.25% |
| 12 | Reliabank Dakota | $2.0M | 2 | 8.62% |
| 13 | VelocitySBA, LLC | $1.8M | 1 | 10.25% |
| 14 | First Dakota National Bank | $1.5M | 2 | 7.85% |
| 15 | First National Bank | $1.4M | 1 | 7.75% |
Pay close attention to the “Avg Rate” column — rates vary significantly between lenders operating in the same state. The spread between the lowest and highest rate in this table can represent tens of thousands of dollars over the life of your loan. The top lenders in South Dakota have funded the most deals locally, meaning their loan officers understand South Dakota’s commercial real estate values, industry mix, and economic conditions. This familiarity typically translates into faster underwriting and more competitive terms.
However, don’t limit your search to local banks alone. Many of the top national SBA lenders fund loans across all 50 states and may offer better rates or more experience with your specific industry. An SBA loan broker like GoSBA gives you access to both South Dakota-based lenders and national lenders with a single application — ensuring you get the most competitive offer available.
Get Matched with the Best SBA Lender in South Dakota
One 5-minute application. 41 lenders competing for your deal. GoSBA matches you to the best fit — free, no obligation.
Top Industries Funded in South Dakota
SBA lending in South Dakota reflects the state’s economic profile and business formation trends. The table below shows which industries received the most SBA 7(a) funding in South Dakota in 2025, ranked by total dollar volume:
| Industry | Loans | Volume |
|---|---|---|
| Hotels (except Casino Hotels) and Motels | 3 | $11.0M |
| Limited-Service Restaurants | 9 | $8.2M |
| Electrical Contractors | 4 | $6.0M |
| Solid Waste Collection | 1 | $4.8M |
| Veterinary Services | 2 | $4.4M |
| Meat and Meat Product Merchant Wholesalers | 1 | $3.0M |
| Industrial Building Construction | 1 | $2.8M |
| Snack and Nonalcoholic Beverage Bars | 9 | $2.6M |
| Poured Concrete Foundation and Structure Contractors | 1 | $2.1M |
| Financial Transactions Processing, Reserve, and Clearinghouse Activiti | 1 | $1.8M |
| RV (Recreational Vehicle) Parks and Campgrounds | 1 | $1.8M |
| Child Day Care Services | 2 | $1.3M |
| Drinking Places (Alcoholic Beverages) | 2 | $1.2M |
| Coin-Operated Laundries and Drycleaners | 1 | $1.1M |
| Other Building Equipment Contractors | 2 | $1.1M |
If your business operates in one of South Dakota’s top-funded industries, you’re in a strong position. Lenders who have funded dozens of similar businesses in your state understand the unit economics, seasonal revenue patterns, and typical margins for your sector. This familiarity translates into faster approvals, less documentation back-and-forth, and more accurate risk pricing — which typically means better terms for the borrower.
Even if your industry isn’t listed above, SBA 7(a) loans are available for nearly every legal business type. An SBA loan broker can identify which lenders have the most experience with your specific industry.
Top Cities for SBA Loans in South Dakota
SBA lending activity within South Dakota is concentrated in major metropolitan areas, but businesses in smaller cities and towns also receive significant funding. The table below shows where in South Dakota the most SBA 7(a) loans were funded in 2025:
| City | Loans | Volume |
|---|---|---|
| Sioux Falls | 63 | $27.1M |
| Brandon | 6 | $5.9M |
| Tea | 5 | $5.4M |
| Rapid City | 19 | $5.3M |
| Pierre | 2 | $5.1M |
| Deadwood | 1 | $5.0M |
| Aberdeen | 4 | $4.2M |
| Brookings | 9 | $4.1M |
| Spearfish | 13 | $4.1M |
| North Sioux City | 1 | $3.0M |
How to Get an SBA Loan in South Dakota
Option 1: Apply directly to one of the top South Dakota lenders above. You’ll get a single quote from one bank.
Option 2: Use an SBA loan broker (recommended). GoSBA Loans submits your application to multiple South Dakota-active lenders simultaneously, creating competition for your deal. Better rates, faster approvals — at no cost to you.
Frequently Asked Questions
How many SBA loans were funded in South Dakota in 2025?
What is the average SBA loan interest rate in South Dakota?
Can I get an SBA loan to start a business in South Dakota?
Who is the top SBA lender in South Dakota?
What industries get the most SBA loans in South Dakota?
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Data sourced from official SBA 7(a) FOIA loan approval records for Calendar Year 2025, published by the U.S. Small Business Administration. For official information, visit sba.gov.
