SBA COVID-19 Updates for SD Economic Ecosystem Partners
Since April 2020, the dynamic network of South Dakota SBA partner lenders has assisted SBA in successfully launching over 63,000 Paycheck Protection Program forgivable loans to SD small businesses and non-profits. The combined total of 2020 and 2021 PPP loans for SD is approximately $2.7 billion.
Last week, after over a year of operation and serving more than eight million small businesses across the U.S., funding for the bi-partisan Paycheck Protection Program has been exhausted.
Some of the questions we’re receiving include:
What does this mean for pending PPP applications?
- The SBA will continue funding outstanding approved PPP applications that may still exist in the processing queue.
- SBA continues to work with lenders to resolve hold codes on PPP loans still in the processing queue. Many will be resolved over the next few weeks. 30 June is currently the cutoff date for processing of loans still in the queue. SBA – including the SD District Office – is daily working with lenders to resolve PPP loans.
- PPP applications for loans over $2 Million (there are several!) are automatically undergoing an in-depth audit. Many of these loans will take a few weeks yet to resolve as they are undergoing review/audit by many internal SBA offices including a thorough legal review.
Are any applications still being taken at all for PPP?
- New qualifying applications will only be funded through Community Financial Institutions, financial lenders who serve underserved communities.
- In SD, currently, the participating CFI is Sentinel Federal Credit Union. I spoke with them on Friday and they are only accepting applications from members that are located in the counties that Sentinel FCU branches are located in. Please refer to their website for SD locations.
- Also, in the CFI family are Community Development Financial Institutions (CDFI). For a list of SD CDFIs, please visit: https://www.cdfifund.gov/awards/state-awards/state-results/South%20Dakota. We are not aware of SD CDFIs currently participating in PPP, although, any of them could register to provide PPP, if they see the program as a value add for their organization.
- Borrowers may leverage www.sba.gov/lendermatch to further identify participating CFIs
What are next steps for PPP?
- Borrowers and lenders should continue processing PPP Forgiveness applications.
- According to the SBA PPP data site, over 50% of 2020 PPP loans are already forgiven across the U.S.
- PPP Forgiveness information: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness
Now that this round of PPP is finished, what other economic resources are available to small businesses (especially, for some that did not get in on PPP)?
- Emergency Injury Disaster Loan (EIDL); 30 yr, fixed interest direct-from-government loan; 3.75% for small businesses / 2.75% for non-profits; no pre-payment penalty; apply directly at www.sba.gov/eidl OR www.sba.gov/disaster
- Shuttered Venue Operators Grant (SVOG) – a grant focused on the entertainment industry and venue operators. Thorough FAQ located at: www.sba.gov/svog. Does not need to be paid back.
- Restaurant Revitalization Fund (RRF) – this fund includes free money for restaurant and bar industry that can be spent by 11 March 2023. If funds are not fully spent by the deadline, they must be turned back (this is what makes a “fund” different than a “grant”). More details and application link: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund
- Targeted EIDL Advance and Supplemental EIDL Advance – this is a grant that is based off Census tracts data and an invitation for application was sent out to a select number of qualified applicants across the U.S., including SD. Eligible applicants should respond to instructions included in email invitation from SBA. https://www.sba.gov/sites/default/files/2021-04/Targeted%20and%20Supplemental%20Advance%20FAQ_FINAL-508.pdf
- Free business counseling: available through SBA Resource Partner Network – Small Business Development Centers (seven across SD), SD CEO Women’s Business Center, Veteran Business Outreach Center of the Dakotas, and SCORE. To find local assistance, visit: https://www.sba.gov/local-assistance
COMING SOON!! – Community Navigators funding opportunity. Through the Community Navigator Pilot Program, across the U.S. and territories, SBA will engage with states, local governments, SBA resource partners, and other organizations in targeted outreach for small businesses underserved communities. Recently, SBA issued an Information Notice with advice and guidance on best practices for adopting the community navigator model for use by SBA district offices, state and local government partners, Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), Veterans Business Outreach Centers (VBOCs), SCORE, and other resource partners. The Biden-Harris Administration and Congressional leaders supported a $100 million investment, as part of the American Rescue Plan, to establish Community Navigator Programs for individuals with disabilities and/or in minority, immigrant, rural, and other underserved communities across the country.