COVID Crisis Business Assistance Options
The recently created CARES Act established several new temporary programs to address the COVID-19 outbreak. In addition to traditional SBA funding programs there is the Paycheck Protection Program.
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. This program is for any small business with less than 500 employees (including sole proprietorship’s, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19. Read more about PPP from the US SBA. Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020. This loan has a maturity of 2 years and an interest rate of 1%.
Here is the Paycheck Protection Program Application.
The SBA’s Economic Injury Disaster Loan funds are now available in South Dakota. A basic requirement asks that you be a small for-profit or non-profit business as defined by SBA, but with less than 250 employees. Minimum loan $5000 with a max of $7500. 0% interest with no fees up to 60 months with no payments for 6 months. You can find all the info you need from the SD Governor’s Office of Economic Development website HERE.
Here is the GOED Loan Application.