Today, U.S. Secretary of Commerce Wilbur Ross announced that the Department’s Economic Development Administration (EDA) is investing $3 million in the Rapid City Economic Development Foundation of Rapid City, South Dakota, to help build a new business incubator facility that will support the growth of sustainable manufacturing and technology-based businesses. The investment, to be located in a Tax Cuts and Jobs Act designated Opportunity Zone, will be matched with $4.5 million in local funds and is expected to help create more than 100 jobs.
“The Trump Administration is working diligently to support entrepreneurship and innovation, especially in the neglected areas of the country identified as Tax Cuts and Jobs Act Opportunity Zones,” said Secretary Ross. “This investment in a Rapid City business incubator will help provide the area’s fledgling manufacturing and tech businesses with the assistance they need to grow and thrive, and catalyze further investment in the area.”
“I’m pleased that the Economic Development Administration has awarded the community of Rapid City with a grant so they can start a tech and manufacturing business incubator,” said Senator Rounds. “Rapid City is a growing community and is home to the South Dakota School of Mines and Technology, where students graduate with the skills necessary to thrive in tech, science and engineering careers. We want to keep these young people in our state, and the incubator can help them and others in the area start their own businesses. This grant is available thanks to the Tax Cuts and Jobs Act, which seeks to spur economic development in ‘opportunity zones’ across the country.”
“Today’s news that the Economic Development Administration is investing in a new business incubator in Rapid City is another sign that the Tax Cuts and Jobs Act is working for middle-income Americans right here in our state,” said Senator Thune. “This new development is likely to spark economic growth in an area that has the potential to be a leader in technology manufacturing because of its proximity to the renowned South Dakota School of Mines and Technology.”
“Opportunity Zones are working for states like South Dakota,” said Representative Johnson. “Our state continues to see the benefits from the Tax Cuts and Jobs Act and this investment to the business incubator will further facilitate growth, opportunity, and more jobs to the people in the area.”
The project will construct a new incubator facility on the corner of East Main Street and East Boulevard in Rapid City, South Dakota as a second location in the Ascent Innovation Campus. The primary goal of this incubator will promote the formation of sustainable manufacturing and technology-based businesses. The incubator will have strong ties to the South Dakota School of Mines & Technology, renowned for its science, technology, engineering, and math programs, and will also benefit from its partnership with Western Dakota Tech. The project was made possible by the regional planning efforts led by the Black Hills Council of Local Governments. EDA funded the completion of the Black Hills Council of Local Governments Comprehensive Economic Development Strategy 2014-2019 to bring together the public and private sectors to create an economic development roadmap to strengthen the regional economy, support private capital investment and create jobs.
The funding announced today goes to a Tax Cuts and Jobs Act designated Opportunity Zone, which provides special incentives for further private sector participation and development. Created by President Donald J. Trump’s Tax Cuts and Jobs Act of 2017, Opportunity Zone designations spur economic development by giving tax incentives to investors in economically-distressed communities nationwide. To learn more about the Opportunity Zone program, see the Treasury Department resources page here. To learn more about the Department’s work in Opportunity Zones, read our blog post.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation’s regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.