Dakota Resources believes that a thriving rural community is possible when passionate people work together. Sunrise Banks is one of the organization’s newest supporters in its mission to connect capital and capacity to empower rural communities.

The organization formed in 1996 when a group of leaders recognized a deficit in funding opportunities for economic development in rural communities. They came together to pool capital from banks, corporations and other funding sources, then re-lend it to local economic development organizations.

“When this work began, it came from a number of banks who realized that they couldn’t lend to these economic development corporations because either they didn’t have the assets they needed or their projects were too risky,” says Joe Bartmann, president of Dakota Resources.

Once Dakota Resources formed, it started making loans to economic development corporations to retain and expand local businesses. That is still one of Dakota Resources’ primary uses of the funding today, along with building houses, creating infrastructure, and renovating buildings within underserved rural communities.

“Because they’re able to access these very flexible loans, they’re able to get projects done that they otherwise wouldn’t be able to do,” Bartmann explains. “We’re willing to make those loans that are too risky for banks.”

Far-Reaching Impact

To date, Dakota Resources – a certified Community Development Financial Institution (CDFI) based in Renner, SD, just north of Sioux Falls – has helped more than 100 communities.

“We’ve had such a big impact,” says Bartmann. “In the early years, it was mostly the bigger towns in South Dakota – with populations of 10,000 or larger. Over the last 10 years, we’ve focused on smaller communities, all the way down to communities of 700 people.”

Approximately two-thirds of borrowers are from very small communities. But Dakota Resources does more for these communities than write a check – the organization is invested in the broader success of the people who live there.

In addition to supporting community development by providing financial support, Dakota Resources offers a wide range of outreach services and programs – including training, technical assistance, board development, and supporting leadership networks.

Investing in Growth

Through its Thriverr Learning Network, Dakota Resources connects communities with economic development leaders. In addition, the organization’s New Markets Tax Credit program provides critical capital to help low-income communities flourish and offers financial tools to empower growth.

Bartmann says Dakota Resources maximizes its impact on communities through these extensive outreach services. He credits their focus on helping borrowers improve lending policies and practices with their overall success.

“Because we do so much leadership and organizational development work with organizations that borrow from us – and those who haven’t borrowed from us yet – we’ve been able to put out over $57 million over the years without one single default,” Bartmann says. “That’s an impact that is only possible because we are working so closely with them.”

Shared Vision and Values with Sunrise Banks

Damon Sehr started at Sunrise Banks in March 2024 as Market President for Sioux Falls, where the bank had just opened a retail branch. While this marked a new retail opportunity for Sunrise Banks, Sioux Falls was already home to its financial technology (fintech) and national products divisions.
About two weeks into his new role, Sehr met Bartmann.

“I was looking for organizations with synergy and shared values, and I came to find Dakota Resources,” Sehr explains. “I really looked at shared focus on innovation, sustainability, community impact, and the opportunity to serve underserved areas.”

With Sunrise Banks looking to expand its reach into rural communities, a partnership with Dakota Resources was a natural alignment. By July, Sehr received leadership approval to make an investment into the Dakota Resources’s community loan fund – the first expansion outside of the Twin Cities market for Sunrise Banks.

With this partnership, Sunrise Banks will significantly and immediately impact multiple communities in its target and extended trade area, demonstrating its dedication to fostering local economic development and building strong community relationships.

“At Sunrise Banks, we have been predominantly focused on urban development,” Sehr says. “Partnering with Dakota Resources is an opportunity for us to expand into rural communities with an organization that prioritizes the same values that we do.”

Perfect Timing

Bartmann says that the investment from Sunrise Banks comes at an important time for Dakota Resources in their ongoing efforts to raise money.

“At that time, we didn’t have any capital available to lend so we had a backlog of organizations looking for funding,” he explains. “The investment from Sunrise Banks enabled us to fund several of those small communities that otherwise wouldn’t have that help.”

Bartmann says the fact that both Dakota Resources and Sunrise Banks are both CDFIs is a big deal – but even more important is their shared mission.

“It’s that shared spirit and shared philosophies,” he says. “We serve the community, not just make money. Sunrise Banks is there to help the community and that’s what we do. That’s what makes us a great fit.”

As the two groups explore other opportunities to collaborate, Bartmann recently joined the advisory board for Sunrise Banks. He says it is a way for him to give back to Sunrise Banks and to strengthen the relationship in the long term.

“There will continue to be other opportunities for us to help Sunrise Banks get its footing in South Dakota,” he says. “We will keep spreading their story of a CDFI bank. That philosophy of community first is easy for us to translate.”

Collaborating Across Communities

Looking toward the future, Bartmann sees Dakota Resources becoming more focused on the collaboration of many communities working together to help each other thrive.

“Honestly, I think that means those communities will need less and less of our direct touch,” Bartmann explains. “I think they’ll need more of our capital, but less of our community engagement efforts. The comprehensive programming that Dakota Resources offerings because they are learning to do that themselves.”

Bartmann says that doesn’t mean the work Dakota Resources does will wind down anytime soon.
“It just means that we will be able to focus on the communities who haven’t started this process yet,” Bartmann says. “It means we will continue expanding our reach and doing what we can for a thriving rural.”

Bartmann says part of this shift toward more extensive and effective collaboration across rural South Dakota is that communities have stopped seeing each other as threats and started building trust and opportunities across the state.

“We feel like our work has been central to making that possible,” Bartmann explains. “It’s not just about money. It’s about building the confidence and skills of development corporations so they are better able to use our funds and other funds to do the kinds of projects that will transform communities.”

Learn more about our business financing options at www.sunrisebanks.com.

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Nicole Rothstein is a freelance writer based in Cleveland, Ohio.