Division of Banking

The State of South Dakota considers anyone engaged in the business of lending money including creating and holding or purchasing or acquiring retail installment contracts to be a Money Lender and subject to the licensing requirements of SDCL 54-4.

Payday and Title lenders are licensed as Money Lenders under SDCL 54-4.

Each location must be separately licensed. All licenses expire on June 30th of each year and the renewal application must be filed with our office by the June 15th deadline. The initial and annual renewal fees are set by rule under ARSD 20:07:20:01 and ARSD 20:07:20:02.

State law requires a surety bond in an amount not to exceed the total of ten thousand dollars ($10,000) for the first license and two thousand five hundred ($2,500) for each additional license. Proof of said surety bond needs to be submitted with the application for Money Lending License. The bond shall be issued by a surety company qualified to do business as a surety in South Dakota. The bond shall be in favor of the State of South Dakota for the use of this state.

South Dakota does not currently have any educational, net worth or physical presence requirements for money lenders.

If you are a foreign corporation, you will need to contact the Secretary of State’s office to determine if a Certificate of Authority is required for you to do business in South Dakota.

Money Lenders are subject to the South Dakota bank franchise tax. The bank franchise tax is a net income tax under SDCL 10-43. If you have questions about the bank franchise tax you may contact the Special Taxes Division at (605) 773-3311.

EXEMPTIONS:

Entities that are exempt from SDCL 54-4 are:

Any state bank and its subsidiary;
Any national bank and its subsidiary;
Any bank holding company and its subsidiary;
Any other federally insured financial institution, its holding company and subsidiary; and
Any South Dakota charted trust company.

Also, any person selling goods or services and providing financing for such goods or services are exempt from the licensing requirements of SDCL 54-4.

The State of South Dakota, any political subdivision of the state, and any quasi-governmental organization created by an executive order of the State of South Dakota and any subsidiary of such organization; any nonprofit corporation formed pursuant to chapter 47-22; any nonprofit United States Treasury Community Development Financial Institution, Small Business Administration Certified Development Company, or Regional Revolving Loan Fund; or any commercial club, chamber of commerce, or industrial development corporation formed pursuant to § 9-12-11 or 9-27- 37 is subject to this chapter but exempt from initial license fees, renewal fees, and surety bond requirements under this chapter.

Click HERE for the Money Lender License Application. All application material must be one-sided documents..

RENEWAL INFORMATION

All money lending licenses issued prior to April 1st of this year will expire on June 30th. Applications for renewal will be available on the Division’s website beginning April 1st. Renewal applications must be received by June 15th. Any application for renewal received after June 15 but before July 1 must be accompanied by a late fee of $150.00. All application material must be one-sided documents.

Renewal applications are processed in the order received. To help ensure that your renewal will be processed and approved before your current license expires, please submit a properly completed application as early as possible. If you wish to track your application, we recommend using a delivery method that provides that capability.

Before submitted your application, make sure that your application includes: complete responses to all questions, explanations where requested, attachments as necessary, and the renewal fee. Any application that is incomplete, unsigned, or not accompanied by the fee will be returned immediately. We do not hold incomplete applications.

License renewal certificates will be issued promptly upon approval and will be sent by regular mail to the contact and mailing address listed on the application.

If you have questions that are not answered by the instructions, please call our office at (605) 773-3421.


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	The State of South Dakota considers anyone engaged in the business of lending money including creating and holding or purchasing or acquiring retail installment contracts to be a Money Lender and subject to the licensing requirements of SDCL 54-4. Payday and Title lenders are licensed as Money Lenders under SDCL 54-4. Each location must be separately licensed. All licenses expire on June 30th of each year and the renewal application must be filed with our office by the June 15th deadline. The initial and annual renewal fees are set by rule under ARSD 20:07:20:01 and ARSD 20:07:20:02. State law requires a surety bond in an amount not to exceed the total of ten thousand dollars ($10,000) for the first license and two thousand five hundred ($2,500) for each additional license. Proof of said surety bond needs to be submitted with the application for Money Lending License. The bond shall be issued by a surety company qualified to do business as a surety in South Dakota. The bond shall be in favor of the State of South Dakota for the use of this state. South Dakota does not currently have any educational, net worth or physical presence requirements for money lenders. If you are a foreign corporation, you will need to contact the Secretary of State’s office to determine if a Certificate of Authority is required for you to do business in South Dakota. Money Lenders are subject to the South Dakota bank franchise tax. The bank franchise tax is a net income tax under SDCL 10-43. If you have questions about the bank franchise tax you may contact the Special Taxes Division at (605) 773-3311. EXEMPTIONS: Entities that are exempt from SDCL 54-4 are: Any state bank and its subsidiary; Any national bank and its subsidiary; Any bank holding company and its subsidiary; Any other federally insured financial institution, its holding company and subsidiary; and Any South Dakota charted trust company. Also, any person selling goods or services and providing financing for such goods or services are exempt from the licensing requirements of SDCL 54-4. The State of South Dakota, any political subdivision of the state, and any quasi-governmental organization created by an executive order of the State of South Dakota and any subsidiary of such organization; any nonprofit corporation formed pursuant to chapter 47-22; any nonprofit United States Treasury Community Development Financial Institution, Small Business Administration Certified Development Company, or Regional Revolving Loan Fund; or any commercial club, chamber of commerce, or industrial development corporation formed pursuant to § 9-12-11 or 9-27- 37 is subject to this chapter but exempt from initial license fees, renewal fees, and surety bond requirements under this chapter. Click HERE for the Money Lender License Application. All application material must be one-sided documents.. RENEWAL INFORMATION All money lending licenses issued prior to April 1st of this year will expire on June 30th. Applications for renewal will be available on the Division’s website beginning April 1st. Renewal applications must be received by June 15th. Any application for renewal received after June 15 but before July 1 must be accompanied by a late fee of $150.00. All application material must be one-sided documents. Renewal applications are processed in the order received. To help ensure that your renewal will be processed and approved before your current license expires, please submit a properly completed application as early as possible. If you wish to track your application, we recommend using a delivery method that provides that capability. Before submitted your application, make sure that your application includes: complete responses to all questions, explanations where requested, attachments as necessary, and the renewal fee. Any application that is incomplete, unsigned, or not accompanied by the fee will be returned immediately. We do not hold incomplete applications. License renewal certificates will be issued promptly upon approval and will be sent by regular mail to the contact and mailing address listed on the application. If you have questions that are not answered by the instructions, please call our office at (605) 773-3421.
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