SBA loans in South Dakota: who lends, what gets bought, how it performs
Since FY2018, SBA lenders have approved 165 7(a) loans to buy an existing business in South Dakota, totaling $134M. The median loan was $480,000, 26% lower than the $645,250 national median for SBA-financed acquisitions. Volume fell 32% from FY2024 to FY2026.
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SBA lenders in South Dakota
The lenders that made the most SBA 7(a) acquisition loans in South Dakota, FY2018 to FY2026.
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First Bank & Trust | 24 | 14.5% | $26.4M | |
| 2 | The First National Bank in Sioux Falls | 21 | 12.7% | $10.1M | |
| 3 | First Interstate Bank | 20 | 12.1% | $18.2M | |
| 4 | Black Hills FCU | 8 | 4.8% | $7.8M | |
| 5 | Dacotah Bank | 8 | 4.8% | $7.4M | |
| 6 | Pioneer Bank & Trust | 8 | 4.8% | $2.5M | |
| 7 | Minnwest Bank | 6 | 3.6% | $3.8M | |
| 8 | Live Oak Banking Company | 5 | 3.0% | $8.2M | |
| 9 | First Dakota National Bank | 5 | 3.0% | $4.3M | |
| 10 | Wells Fargo Bank National Association | 5 | 3.0% | $2.4M |
What this tells a buyer
- Deal size band. Half of South Dakota acquisition loans fell between $212,000 and $866,000. The nationwide band is $283,000 to $1,465,000.
- Share of national volume. South Dakota accounts for 0.3% of all SBA acquisition loans and ranks number 42 of 54 states and territories by count.
- Industry concentration. Limited-Service Restaurants is the most financed business type here (11 loans, 7% of the state). The top three industries together are 15%.
- Lender concentration. First Bank & Trust made 15% of the state's acquisition loans. No single lender dominates, so there are several lenders with local acquisition experience.
- Franchise resales. 13% of acquisition loans in South Dakota involved a franchised brand; the most frequent is Subway (5 loans).
South Dakota acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 15 | $7M | $301,800 | |
| FY2019 | 12 | $8M | $515,000 | |
| FY2020 | 28 | $17.5M | $372,500 | |
| FY2021 | 21 | $12.7M | $295,700 | |
| FY2022 | 15 | $11.4M | $575,000 | |
| FY2023 | 20 | $17.3M | $680,200 | |
| FY2024 | 22 | $19.2M | $574,000 | |
| FY2025 | 17 | $25.3M | $830,000 | |
| FY2026 | 15 | $15.7M | $530,600 |
How often do these acquisition loans fail?
Of the 76 South Dakota acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 2.6% by loan count and 1.9% by dollars. 43 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so South Dakota is 25% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Top industries in South Dakota
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 11 | 6.7% | $10M | |
| 2 | Full-Service Restaurants | 8 | 4.8% | $3.8M | |
| 3 | General Automotive Repair | 6 | 3.6% | $4.1M | |
| 4 | Offices of Chiropractors | 6 | 3.6% | $803K | |
| 5 | Hotels (except Casino Hotels) and Motels | 5 | 3.0% | $12.7M | |
| 6 | Fitness and Recreational Sports Centers | 5 | 3.0% | $1M | |
| 7 | Gasoline Stations with Convenience Stores | 4 | 2.4% | $5.3M | |
| 8 | Poured Concrete Foundation and Structure Contractors | 4 | 2.4% | $4.5M | |
| 9 | Solid Waste Collection | 3 | 1.8% | $3.5M | |
| 10 | Other Building Material Dealers | 3 | 1.8% | $2.1M |
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Franchise brands bought in South Dakota
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Subway | 5 | 3.0% | $4.8M | |
| 2 | Best Western | 2 | 1.2% | $5.4M | |
| 3 | Little Caesars | 1 | 0.6% | $3.1M | |
| 4 | Americas Best Value Inn | 1 | 0.6% | $790K | |
| 5 | The UPS Store | 1 | 0.6% | $640K | |
| 6 | Farrell's eXtreme Bodyshaping | 1 | 0.6% | $610K | |
| 7 | Cold Stone Creamery | 1 | 0.6% | $600K | |
| 8 | Rainbow Restoration | 1 | 0.6% | $480K | |
| 9 | Meineke Car Care Center | 1 | 0.6% | $467K | |
| 10 | Pizza Ranch | 1 | 0.6% | $420K | |
| 11 | Do it Best | 1 | 0.6% | $285K |
Acquisitions by industry in South Dakota
The 1 industry with the most acquisition loans in South Dakota (minimum ten). Charge-off rates appear where at least 20 loans are old enough to measure.
| Industry | Loans | Median loan | Charge-off |
|---|---|---|---|
| Limited-Service Restaurants | 11 | $648,000 | n/a |
Questions buyers ask
How much do buyers borrow to buy a business in South Dakota?
The median SBA 7(a) acquisition loan in South Dakota was $480,000 across 165 loans (FY2018 to FY2026), 26% lower than the $645,250 national median. The middle half of loans ran from $212,000 to $866,000. A loan is not the purchase price: it is net of the buyer's equity injection and usually includes some working capital.
Which banks make the most SBA acquisition loans in South Dakota?
First Bank & Trust (24), The First National Bank in Sioux Falls (21), First Interstate Bank (20), Black Hills FCU (8), Dacotah Bank (8). First Bank & Trust alone accounts for 15% of South Dakota acquisition loans. See each lender page for industries and states served.
What kinds of businesses are bought with SBA loans in South Dakota?
Limited-Service Restaurants (11), Full-Service Restaurants (8), General Automotive Repair (6), Offices of Chiropractors (6), Hotels (except Casino Hotels) and Motels (5). The top three industries make up 15% of the state's acquisition loans.
How often do SBA acquisition loans fail in South Dakota?
In the seasoned cohort (FY2018 to FY2021), among 76 South Dakota acquisition loans: 2.6% charged off, 25% lower than the 3.5% national acquisition average.
How does South Dakota compare with other states?
South Dakota ranks number 42 of 54 states and territories by acquisition loan count, with 0.3% of national volume (165 of 48,902 loans) and $134M approved. Browse the full state ranking.
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Related
- Limited-Service Restaurants nationally
- Full-Service Restaurants nationally
- General Automotive Repair nationally
- First Bank & Trust
- First Interstate Bank
- Minnwest Bank
- All states
- Buyer's guide to the data
State is the project state recorded by the lender (where the acquired business operates), not the borrower's mailing state.