South Dakota Approves Business Expansion Funding for Rapid City, De Smet and Black Hills Projects

Northeast Radio SD News – South Dakota - The South Dakota Board of Economic Development has approved state financing for three business expansion, healthcare succession, and advanced manufacturing projects across South Dakota.

The funding, allocated through the state’s SD Works Program and South Dakota Jobs Program, is designed to support local business growth, retain critical rural services, and create new full-time jobs.

“In South Dakota, we continue to support businesses that are investing, growing, and creating opportunities for people across our state,” said Governor Larry Rhoden. “These projects strengthen local communities, support good-paying jobs, and build a strong, diverse economy that is Open for Opportunity."

High-Purity Ethanol Operations in Rapid City

The board approved a $300,000 SD Works loan for Chemistry Distilling to purchase and renovate an industrial facility in Rapid City. The site will house distilling equipment and be utilized to produce and store high-purity ethanol.

Founded in 2024, Chemistry Distilling commercializes technology that upgrades conventional fuel-grade ethanol into USP-grade and beverage-grade ethanol with exceptionally low impurity levels. The expansion project is expected to create seven full-time positions over the next five years.

Preserving Rural Healthcare in De Smet

In Kingsbury County, the board approved a $90,000 SD Works loan for Dakota Evergreen, LLC to support the purchase of a chiropractic clinic in De Smet.

The ownership transition ensures the clinic remains operational, protecting four full-time staff positions and preserving an essential healthcare service in the area. The facility is the only chiropractic provider within a 35-mile radius of De Smet, serving patients throughout South Dakota and neighboring states.

Defense Manufacturing Expansion in the Black Hills

A South Dakota Jobs Program grant of up to $91,199 was approved for Innovative Materials & Processes, Inc. to expand its Black Hills manufacturing operations. The company plans to construct a new building and acquire new manufacturing and warehouse equipment to keep pace with rising production orders.

Innovative Materials & Processes has supported U.S. Army and Navy defense programs for more than 25 years through the research, development, prototyping, and manufacturing of energetic and pyrotechnic materials. The facility expansion is projected to add 18 to 24 new positions.

Targeted Economic Tools

“South Dakota has a strong foundation in manufacturing, agriculture, and innovation, and we continue to advance opportunities that build on those strengths,” said Governor’s Office of Economic Development (GOED) Commissioner Bill Even. “These projects demonstrate the impact of targeted economic development tools, from helping a rural business transition to its next generation of ownership to supporting advanced manufacturing and national security industries in South Dakota.”

Both financing programs operate under state statutory requirements to provide capital incentives that encourage private investment and long-term economic stability statewide.

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