Buying a Business in South Dakota
The Numbers
FY2025 Acquisition Loans
18
$25.8M approved
Median Loan
$500k
FY2020 through FY2025
Loans Since FY2020
131
$107M in total approvals
Share of U.S. Activity
0.4%
Of change-of-ownership loans
What the Data Says
South Dakota ranks 42nd of 53 states and territories for change-of-ownership SBA 7(a) lending: 131 loans since FY2020, 0.4% of the national total.
The typical deal runs small: its $500k median loan sits below the $650k midpoint across states, within reach on less equity.
Activity is cooling: FY2025's 18 loans ran behind the state's own ~22 a year pace since FY2020.
The most-financed target is limited-service restaurants (9 loans), and the 5 most active lenders wrote about 52% of the state's acquisitions, a concentrated lender field.
This is a thin market by national standards, so expect fewer local comparables and mostly out-of-state lenders; build the shortlist deliberately rather than relying on a nearby branch.
Most Active Acquisition Lenders in South Dakota
- 1. The First National Bank in Sioux Falls19 loans
- 2. First Bank & Trust17 loans
- 3. First Interstate Bank16 loans
- 4. Black Hills FCU8 loans
- 5. Pioneer Bank & Trust8 loans
A lender being active in South Dakota does not require a local branch; several top SBA lenders work nationally. Build a shortlist with Lenders.
What Gets Bought in South Dakota
- Limited-Service Restaurants9 loans
- General Automotive Repair6 loans
- Full-Service Restaurants5 loans
- Poured Concrete Foundation and Structure Contractors4 loans
- Offices of Chiropractors4 loans
Industry-specific pricing and diligence live in the Guides. How many buyable businesses South Dakota holds in each trade is in Where the Businesses Are.
Method & Source
Computed from the SBA 7(a) FOIA loan-level dataset (FY2020 through FY2025), filtered to approvals flagged change of ownership with a South Dakota project address. Approvals, not closings; excludes conventional and 504 financing.