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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 build the lender shortlist deliberately.

Most Active Acquisition Lenders in South Dakota

  1. 1. The First National Bank in Sioux Falls19 loans
  2. 2. First Bank & Trust17 loans
  3. 3. First Interstate Bank16 loans
  4. 4. Black Hills FCU8 loans
  5. 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. Where the buyable targets sit in South Dakota, by county, is in the South Dakota buying guide.

By Metro Area in South Dakota

  • Sioux Falls, SD-MN

    51 purchase loans, median $575k. Bought most: General Automotive Repair. Most active lender: The First National Bank in Sioux Falls (16).

  • Rapid City, SD

    26 purchase loans, median $313k. Bought most: Limited-Service Restaurants. Most active lender: Black Hills FCU (7).

Every metro area that drew 20 purchase loans, with three lenders each, is in the metro table.

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.