Business financing in Kingsbury County.

Business financing is money you borrow — or receive — to start, run, or grow a business. It is different from a personal loan because the funds are meant for business purposes: buying equipment, covering payroll, purchasing real estate, remodeling a storefront, or building up working capital so you can take on bigger jobs.

The most common forms of business financing include:

• **Term loans** — A lump sum you repay over a set period, usually with a fixed or variable interest rate.

• **Lines of credit** — A revolving pool of money you draw from when needed and repay as you go, similar to a business credit card but usually with better rates.

• **SBA-backed loans** — Loans made by a local lender but partially guaranteed by the U.S. Small Business Administration. Because the government shares the risk, lenders are often willing to offer better terms to small businesses that might not qualify for conventional financing.

• **Microloans** — Small loans, often under $50,000, made by nonprofit lenders called CDFIs (Community Development Financial Institutions). These are especially useful for very new or very small businesses.

• **Equipment financing** — A loan specifically tied to a piece of equipment, which serves as collateral.

• **Real-estate loans** — Loans used to purchase or improve commercial or investment property.

None of these require you to give up ownership of your business. Equity financing — selling shares — is a separate path and is rarely the right first step for a small, locally rooted business in a rural county like Kingsbury.

Kingsbury County is a rural, agriculturally rooted county in eastern South Dakota. The county seat is De Smet, and the overall population is small — roughly 4,500 to 5,000 residents. The local economy is anchored by farming (corn, soybeans, cattle, and hogs), small retail, healthcare, and construction trades.

**What lenders look at:**

• **Time in business** — Most conventional lenders want to see at least one to two years of business history. Newer businesses may need to start with a microloan or a CDFI.

• **Credit score** — A score of 650 or above opens more doors, but some CDFIs and ITIN-friendly lenders work with people who have thin or imperfect credit histories.

• **Revenue or income** — Lenders want to see that your business generates enough cash to cover loan payments. Even informal records — invoices, bank statements, tax returns — help.

• **Collateral** — Rural property, equipment, or vehicles can serve as collateral, which helps in a county where real estate values are modest.

• **ITIN borrowers** — If you do not have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN), you can still qualify with certain lenders. This is common for immigrant-owned businesses in the region, including agricultural contractors and trade workers.

**Who this guide is most useful for:**

— A solo electrician or plumber operating in or around De Smet

— A small landlord with one or two rental properties

— An agricultural supply business or farm-related service

— A restaurant, daycare, or home-based business in a small Kingsbury County town

— An immigrant worker or family wanting to formalize their business and access credit

Gathering documents before you talk to a lender saves time and shows you are prepared. The exact list varies by lender and loan type, but most will ask for some combination of the following:

**For your business:**

• Two to three years of business tax returns (or as many as you have)

• Recent profit-and-loss statement (your accountant or bookkeeper can prepare this)

• Recent bank statements — typically the last three to six months

• A simple business plan or a written explanation of what you will use the money for

• Business licenses or registrations from the State of South Dakota

• Any existing lease agreements if you rent your business space

**For you personally:**

• Two years of personal tax returns

• Photo ID (a passport, consular ID card, or driver's license is acceptable at many lenders)

• Your ITIN letter from the IRS if you do not have a Social Security Number

• A personal financial statement listing your assets and debts

**For real estate or equipment loans:**

• Property address and description, or equipment make, model, and estimated value

• Any existing mortgage or lien information

**Tip:** If your records are informal or incomplete, a CDFI or nonprofit business advisor can help you organize them before you apply anywhere. This is not embarrassing — it is smart.