Mount Rushmore
April 9, 2020


PIERRE - The Governor’s Office of Economic Development (GOED) understands that during these uncertain and challenging times in our world history, working capital is an issue. Governor Noem’s Small Business Relief Fund is now available to South Dakota businesses that need assistance to help make ends meet.

Appropriate Eligibility Requirements:

  1. Be a small for-profit or non-profit business as defined by SBA, but with less than 250 employees
  2. Physical presence in South Dakota
  3. Established prior to March 2020
  4. Provide a written acknowledgement from a South Dakota bank and/or certified public accountant that the applicant has made statements or otherwise provided information or evidence that supports applicant’s claim that applicant’s business has suffered a material negative impact from the COVID-19 pandemic.
  5. Have a personal credit with a minimum score of 650; lower requires a special exception
  6. Demonstrate 1:1 debt coverage ratio with the new debt factored under normal circumstances

Loan Details:

  1. Amount:
    • Min: $5,000
    • Max: $75,000
    • Maximum of 3 months operating expenses
  2. Terms:
    • Interest rate: 0%
    • Fees: none
  3. Amortization:
    • No payments for initial 6 months
    • Maximum term of 60 months (prefer shorter term for smaller loans)
    • Automatic Payment Required
    • No pre-payment penalty
  4. Security:
    • Personal guaranties for any owner with at least a 20% share of the business
    • A blanket security agreement
    • Loan over $25,000 may require additional collateral (mortgage, etc)
    • Loans will be made directly to small businesses

Loan Agreement Terms:

  • Proceeds from the loan must be held in a separate bank account at a bank in South Dakota.
  • Applicant must provide regular expenditure reports to GOED documenting that the use of proceeds were used for normal recurring operating expenses.
  • Any funds remaining in the account after 3 month period will be paid back to GOED.
  • Proceeds may not be used for any distributions or dividends to owners.
  • GOED makes no assurances as to how approval or denial of this application will impact the applicant’s ability to pursue other financing from the SBA or any other source.
  • As a subfund of REDI, these loans will be subject to annual audit by Department of Legislative Audit
  • Board of Economic Development will review Eligibility Requirements and Loan Terms; a public monthly report will be provided to them on loan activity.
  • Loans will be approved by the Commissioner of the Governor’s Office of Economic Development*
  • All application materials are confidential. Name of all loan recipients will be a public record.

GOED expects high demand for these loans, and applications will be evaluated on a “first come, first served” basis.

*after consultation with the Credit Review Committee

To apply, or for more information, click