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USDA Business Loans in Rapid City, SD

Find lenders offering usda business loans in the Rapid City, including Box Elder, Sturgis, and surrounding areas. Compare rates, terms, and programs from 2 lenders.

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Lenders
2
Typical Rate
Fixed or variable, negotiated with lender
Down Payment
10% existing business, 20% new business
Term
7-30 years by use of proceeds
Closing Time
60-120 days

Which USDA lenders serve Rapid City?

2 lenders offering usda business loans in the Rapid City, SD area.

Live Oak Banking Company

SBA

WILMINGTON, NC

One of the nation's top SBA 7(a) lenders, specializing in lending to small businesses across healthcare, veterinary, beverage, self-storage, and other industries. Offers SBA loans, USDA loans, conventional business loans, and commercial real estate financing.

628 SBA loans
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Celtic Bank Corporation

SBA

SALT LAKE CITY, UT

Industrial bank and top SBA preferred lender headquartered in Salt Lake City. Specializes in SBA 7(a) lending for business acquisitions, partner buyouts, commercial real estate, and working capital. Also offers USDA business loans.

442 SBA loans
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What does the Rapid City commercial real estate market look like?

Rapid City's CRE market is shaped by its role as the gateway to the Black Hills, Mount Rushmore, and Badlands tourism economy, which drives demand for hospitality, retail, and seasonal commercial properties. Ellsworth Air Force Base, located nearby in Box Elder, is a major economic anchor that supports off-base retail, housing, and services — and the planned B-21 Raider bomber program is expected to bring additional personnel and investment. The North Maple Avenue corridor and East North Street serve as the primary commercial and retail arteries, while the Rushmore Crossing development has added big-box and national retail tenants. Healthcare demand from Monument Health, the largest hospital system in western South Dakota, generates steady medical office leasing.

Key Economic Drivers

  • ●Black Hills and Mount Rushmore tourism economy attracting millions of annual visitors
  • ●Ellsworth Air Force Base and the incoming B-21 Raider bomber mission expanding military personnel
  • ●Monument Health regional hospital system and its campus expansion in the metro
  • ●Sturgis Motorcycle Rally generating peak-season hospitality and retail demand in the region

Market Insight

The B-21 Raider bomber program at Ellsworth Air Force Base is expected to bring over 2,000 additional military and civilian personnel to the Rapid City area, creating significant new demand for housing, retail, and commercial services in the Box Elder and I-90 corridors.

How do usda business loans work in Rapid City, South Dakota?

USDA Business & Industry (B&I) loans are lender-made, government-guaranteed loans for businesses in eligible rural areas. They can cover real estate, equipment, business acquisition, and working capital, with terms tied to use of proceeds and underwriting that looks a lot like a bank loan plus USDA eligibility. In the Rapid City metro area, borrowers can access 2 lenders offering USDA financing, including Box Elder, Sturgis, and surrounding areas. Loan amounts typically range from $50K to $10M with rates from Fixed or variable, negotiated with lender.

Who should consider usda business loans?

  • Rural owner-user businesses
  • Food processing and manufacturing
  • Business acquisition in eligible rural areas
  • Equipment, real estate, and working capital needs

What are the key requirements?

  • Project generally in an eligible rural area outside cities or towns above 50,000
  • Tangible balance sheet equity typically at least 10% existing / 20% new business
  • Good credit history and repayment ability
  • Collateral and lender support strong enough for a USDA guarantee

Advantages

  • ✓FY2026 guarantee up to 85% on loans under $5M
  • ✓Long terms, up to 30 years on real estate
  • ✓Can cover real estate, equipment, acquisition, and working capital
  • ✓Rates are negotiated with the lender, not set by USDA

Considerations

  • •Project must be in an eligible rural area
  • •No lines of credit or rental housing
  • •Full lender underwriting plus USDA review
  • •Smaller lender pool than SBA

USDA Business Loans in Rapid City FAQ

How many USDA lenders serve Rapid City, SD? ▼
There are 2 lenders offering usda business loans in the Rapid City metro area. Loan amounts typically range from 50K to 10M with rates from Fixed or variable, negotiated with lender.
What are USDA loan rates in Rapid City? ▼
USDA loan rates in Rapid City typically range from Fixed or variable, negotiated with lender, though exact rates depend on factors like your credit score, the property's cash flow, and loan-to-value ratio. Down payments usually run 10% existing business, 20% new business, and closing can take 60-120 days. Compare multiple Rapid City-area lenders to find the best terms for your deal.
What qualifies as a rural area for USDA loans? ▼
USDA generally requires the project to be outside cities or towns above 50,000 population and outside adjacent urbanized areas. The safest move is to confirm the project address on the USDA eligibility map before you spend money on third-party reports.
Can USDA Business & Industry loans be used for working capital? ▼
Yes, in many cases. USDA says B&I proceeds can cover working capital, but term limits are shorter than for real estate or equipment, and the lender still has to show the deal cash flows.
What is the USDA guarantee percentage in 2026? ▼
USDA's FY2026 notice sets the standard B&I guarantee at 85% for loans under $5 million and 80% for loans from $5 million to $25 million, with a 90% tier for qualifying isolated rural Alaska projects. Separate USDA guidance says most single-borrower requests should still think in terms of a normal $10 million limit unless an exception is approved.
How long can a USDA business loan term run? ▼
The term depends on the use of proceeds. USDA training guidance allows up to 30 years for real estate, up to 15 years or useful life for machinery and equipment, and up to 7 years for working capital.

Where else can I find usda business loans in South Dakota?

Sioux Falls

Other loan types in Rapid City

🏛️

SBA 7(a) Loans in Rapid City

Rates from Prime + 1.5% to 3.75%. 10-20% down.

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SBA 504 Loans in Rapid City

Rates from Below market (CDC portion ~5-6%). 10% down.

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Commercial Mortgage in Rapid City

Rates from 6% - 8%. 20-30% down.

Related resources

USDA Business Loans in South Dakota

Browse all USDA lenders serving SD.

USDA Business Loans Overview

Rates, requirements, and how USDA loans work.

All South Dakota Lenders

Browse all commercial lenders serving SD.

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