The Southeast Development Foundation in Sioux Falls is getting a $500,000 grant from the federal Economic Development Administration.
The money will be used to replenish a revolving loan fund, which will provide new low-interest loans to businesses hurt by flooding in 2008.
The administration says the funding is expected to create 300 jobs and generate $8 million in private investment.
U.S. Senator Tim Johnson says the flooding presented an additional hardship for businesses already dealing with the economic downturn. The South Dakota Democrat says the infusion of money will help the region recover.