SIOUX FALLS, S.D. (KELO) — Potential help for small businesses and nonprofits hurt by the coronavirus could be on the way as South Dakota is now eligible for economic injury disaster loans from the Small Business Administration.
South Dakota Governor Kristi Noem announced in a news release today that small businesses and non-profit organizations in South Dakota that have been negatively impacted by the global COVID-19 virus are now eligible for economic assistance from the U.S. Small Business Administration (SBA). The news comes after Noem had formally made the required request for an economic injury disaster declaration from the SBA.
Noem asked businesses impacted is impacted by COVID-19, to contact the state’s Office of Economic Development GOED or the State Department of Tourism.
The following are additional details provided by the SBA that were included in the news release:
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue hey are experiencing.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
Small businesses can learn more about the program and apply for financial assistance at www.sba.gov/disaster or call the SBA at 1-800-659-2955.
Small businesses with questions about this SBA loan program or other assistance provided at the state-level can call 605-773-4633 to speak directly with a GOED representative. Businesses can also stay informed on news and guidance related to COVID-19 and its impact on South Dakota by visiting the state’s dedicated coronavirus website at COVID.sd.gov.