Established in 1982, the Foundation was endowed by the SDBA to provide financial support for a Chair of Banking at the University of South Dakota School of Business in Vermillion. Dr. Leon Korte serves as the Chair of Banking.

In 1992, the SDBA undertook a major fund drive to further capitalize the foundation in order to provide ag lending internships, scholarships and special educational programs and award at both the secondary and post-secondary levels.