Feasibility Study Consultant in Sioux Falls, SD: SBA and USDA

A feasibility study in Sioux Falls is read by a lender or a Certified Development Company before anyone else. In fiscal year 2025 this metro recorded 95 SBA 7(a) approvals for $41,874,200, and its residents split South Dakota 96.9% and Minnesota 3.1% across a state line that changes the inputs. One rule a lender meets here: Sioux Falls municipal sales tax and gross receipts tax on food, lodging, alcohol and admissions.

The Sioux Falls, SD-MN metro is home to about 308,266 residents per the U.S. Census Bureau Population Estimates, led by Minnehaha County, SD at 208,639; Lincoln County, SD at 75,244; Rock County, MN at 9,525; Turner County, SD at 9,087. South Dakota counties hold 298,741 of them, 96.9% of the metro; Minnesota counties 9,525, 3.1%.

A national template prices this metro on its 308,266 residents and stops there. The rules below come from the South Dakota Department of Revenue, and each one changes a line of the model before a lender reads it.

Sioux Falls municipal sales tax and gross receipts tax on food, lodging, alcohol and admissions. The South Dakota Department of Revenue puts the state rate on sales and use at 4.2%. It also administers municipal tax, and its city table lists Sioux Falls at 2.00% with general code 330-2 and a 1.00% municipal gross receipts tax with code 330-1. The department explains that the 1% municipal gross receipts tax (MGRT) is in addition to the municipal sales tax, and the Sioux Falls row carries an X under each of the Lodging, Eating Establishments, Alcohol and Admissions columns. For a feasibility study of a hotel, restaurant, fitness center or other admissions-based use inside the City of Sioux Falls, the tax stack on guest and customer receipts should include the state rate, the municipal rate and the gross receipts tax, not the state rate alone. This page does not state the rates for other jurisdictions in the metro, so each site outside the city needs its own check.

Sioux Falls lodging tax listed as a separate tax code. On its municipal tax page the South Dakota Department of Revenue lists tax types that go in the City and Special Jurisdiction section of the return, and among them is Sioux Falls Lodging at 1% with code 800-1. The same page defines lodging accommodations for the municipal gross receipts tax as the lease or rental of hotel/motel rooms, campsites, or other lodging accommodations for periods of less than 28 consecutive days. In a feasibility model for a hotel or an RV park in Sioux Falls, stays shorter than 28 consecutive days sit inside that definition, so the model should carry the lodging line as its own tax code next to the sales and gross receipts lines instead of folding it into one blended rate. The page does not say how the Sioux Falls Lodging line interacts with the municipal gross receipts tax, so the stacking should be confirmed with the Department before a lender case is built.

Nationally, the U.S. Small Business Administration closed fiscal year 2025 having guaranteed 84,400 7(a) and 504 loans for $44.8 billion. This page computes the Sioux Falls share from the SBA's own 7(a) and 504 FOIA release, as of June 30, 2026, by member county rather than by district office: in fiscal year 2025 the metro's five counties recorded 95 SBA 7(a) approvals for $41,874,200 and 46 SBA 504 approvals for $39,366,000.

In fiscal year 2025 the 7(a) approvals here came from The First National Bank in Sioux Falls (22 loans, $10,813,600), Levo Federal Credit Union (17 loans, $1,020,500), and U.S. Bank, National Association (13 loans, $425,900), listed by approval count with the names as the SBA released them. The 504 approvals that year went through Dakota Business Finance (34 loans), South Dakota Development Corporation (9 loans), and Midwest Business Finance Corporation (2 loans). The SBA's district office field reads South Dakota District Office on 93 of the 95 fiscal year 2025 7(a) rows, 97.9%, and Minnesota District Office on 2.

Across fiscal years 2010 to 2026 disbursed, the ten asset classes tracked here account for 98 7(a) loans for $47,686,200 and 110 504 loans for $85,894,000 in this metro. In fiscal year 2025 alone those classes took 17 7(a) and 504 approvals for $16,607,200. The table sets out each class; a cell under five loans is not shown, and a charge-off rate is printed where 30 or more loans have resolved and left blank below that.

USDA Business and Industry and USDA Community Facilities credit runs on a statutory geography rather than on a county line. Under 7 U.S.C. 1991(a)(13)(A) the terms rural and rural area mean any area other than a city or town that has a population of greater than 50,000 inhabitants and any urbanized area contiguous and adjacent to such a city or town. The test turns on the subject address and the urbanized-area boundary around it, not on the name of a county or a metro. For a project in Sioux Falls the address decides it. The metro spans five counties in two states, from Minnehaha County, SD at 208,639 residents to McCook County, SD at 5,771, and an urbanized-area boundary follows the census map rather than any county line. MMCG checks the subject address against the USDA Rural Development eligibility map at intake, before work on the study begins, and this page names no town as eligible.

A hotel feasibility study in Sioux Falls starts from the metro's own SBA record. Across fiscal years 2010 to 2026 disbursed, hotels and motels account for 6 7(a) loans for $6,817,800 and 24 504 loans for $41,991,000 here, $48,808,800 in all. Full and limited service restaurants come to $37,201,800 over the same years.

For a hotel in this metro the publisher rules above are model lines rather than background: Sioux Falls municipal sales tax and gross receipts tax on food, lodging, alcohol and admissions (the South Dakota Department of Revenue); Sioux Falls lodging tax listed as a separate tax code (the South Dakota Department of Revenue).

These are the points an underwriter in Sioux Falls reads before the rest of the file. Each traces to a government publisher or to the SBA's own file.

MMCG starts from the project address, the asset class and the lender or Certified Development Company contact. The address settles the state, the county and the rules set out above; the asset class sets which part of the SBA record applies.

The report names its sources the way this page does: the South Dakota Department of Revenue, the SBA FOIA release, and the Census Bureau's population estimates. The method is set out in full in MMCG's feasibility study methodology.

MMCG Invest, LLC is a feasibility study consultancy that specializes in SBA and USDA feasibility studies for lenders, Certified Development Companies, USDA Rural Development guaranteed lenders and the borrowers they serve, with Sioux Falls among the markets it covers. The practice is led by Michal Mohelsky, J.D., FMVA, Practicing Affiliate of the Appraisal Institute. Reports are prepared under SBA SOP 50 10 8.1 for 7(a) and 504 files and under 7 CFR Part 5001 for USDA files, and each one states which schedule, rate and boundary it relied on so a credit officer can check the work. Pricing starts at $4,900, standard delivery runs 9 to 16 business days, a rush track delivers in 5 business days, and every inquiry receives a response within 12 business hours.