South Dakota Proof of Concept Program

The South Dakota Proof of Concept Program is a state-level innovation funding program administered by the South Dakota Governor's Office of Economic Development (GOED). It provides up to $25,000 to help entrepreneurs, universities, existing companies, and other entities demonstrate the technical and economic feasibility of an innovation before it moves toward commercialization in South Dakota.

This is not a standard cash grant. According to the program description, the funding is structured as a forgivable or convertible innovation investment — meaning it may be forgiven under certain conditions or converted into a repayment obligation. Applicants are also required to provide a 10% match toward the project. Small business owners and innovators considering this program should understand these structural details before applying, since the repayment terms differ from a typical no-strings grant.

Applications are accepted on a rolling basis rather than tied to a single annual deadline, and each application undergoes technical review by the state universities' Research Affairs Council. This review process suggests the program is geared toward projects with a genuine research or technical feasibility component, rather than general business expenses.

For a small business owner in South Dakota working on a new technology, product, or process, this program could serve as early-stage, pre-commercialization funding to test whether an idea is technically sound and economically viable. Because exact terms, current award amounts, and open application rounds can change, applicants should confirm the latest details directly on the GOED website before applying. As of 2026, the source notes that current award amounts, open rounds, and eligibility should be reconfirmed at the official site.