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South Dakota’s Small Business Grant Program |
On October 5, the legislature passed funding authority for Governor Noem’s proposed $400 million Small Business Grant Program, designed to provide direct grants to businesses negatively impacted by COVID-19. The application process is slated to begin on October 13, 2020 and end on October 30, 2020*. Thousands of businesses are expected to apply, so it is extremely important that businesses are prepared for the application process.
Applications are no longer being accepted for this program.
South Dakota’s Small Business Grant Program | Governor's Office of Economic Development Q&A
SDRA has received questions from members who were turned down for the state’s Small Business Grant Program, or who thought they should have received a higher amount. The state received more than 8,500 applications and thus far has paid out more than $243 million in grants to businesses. About 1,400 applications are still in the “review” phase. Here’s what we’ve learned from The Governor’s Office of Economic Development (GOED):
Q: Is there an appeal process for businesses that were turned down for the state small business grant program or received less than expected?
A: GOED encourages applicants to review these links:
After reviewing the explanations, if you believe you should have received a different amount than awarded and wish to file an appeal or complaint, send an email [email protected] outlining why you’re appealing the award. GOED’s contractor will review your documentation and if appropriate, refer the application to the state with a recommendation to change the award. However, GOED advises that if the applicant was ineligible, the grant amount fell within the established guidelines, and no errors were made during the review process, it’s unlikely that the final award will be changed.
SDRA has received questions from members who were turned down for the state’s Small Business Grant Program, or who thought they should have received a higher amount. The state received more than 8,500 applications and thus far has paid out more than $243 million in grants to businesses. About 1,400 applications are still in the “review” phase. Here’s what we’ve learned from The Governor’s Office of Economic Development (GOED):
Q: Is there an appeal process for businesses that were turned down for the state small business grant program or received less than expected?
A: GOED encourages applicants to review these links:
- Small Business and Non Profit Grant Award Explanation
- Small Buiness Startup Grant Award Explanation
After reviewing the explanations, if you believe you should have received a different amount than awarded and wish to file an appeal or complaint, send an email [email protected] outlining why you’re appealing the award. GOED’s contractor will review your documentation and if appropriate, refer the application to the state with a recommendation to change the award. However, GOED advises that if the applicant was ineligible, the grant amount fell within the established guidelines, and no errors were made during the review process, it’s unlikely that the final award will be changed.
Q: I believe the decision on my Small Business Grant Application was based on outdated or incorrect information. Can I provide corrected, updated or supplemental information?
A: As part of the application, a business certifies that the application and all supplemental information is true and correct, so if an award determination has been made and a business is unhappy with the results but the award amount was accurately determined based on the information that was submitted in the application, it is unlikely to be changed.
GOED says if an applicant received an email that indicated that they did not qualify for funding, the applicant was allowed to review the application and request that it be returned to them to correct things such as typographical errors, etc. For example, GOED explains, a few businesses had inadvertently added an extra “zero” to their PPP award, which initially caused their award to be completely eliminated.
A: As part of the application, a business certifies that the application and all supplemental information is true and correct, so if an award determination has been made and a business is unhappy with the results but the award amount was accurately determined based on the information that was submitted in the application, it is unlikely to be changed.
GOED says if an applicant received an email that indicated that they did not qualify for funding, the applicant was allowed to review the application and request that it be returned to them to correct things such as typographical errors, etc. For example, GOED explains, a few businesses had inadvertently added an extra “zero” to their PPP award, which initially caused their award to be completely eliminated.
Q: If a business was approved for a grant but was unable to afford to keep going and permanently closed before the funding actually arrived, can they use the grant funds to pay bills incurred while they were open, or does the money have to be returned to the state?
A: GOED points out that applicants were required to certify that their business is a going concern and, among other things, that the beneficiary has no substantial doubt as to the business’s ability to continue as a going concern. Recipients will need to review the definitions in the certification to determine whether they have met all the criteria.
A: GOED points out that applicants were required to certify that their business is a going concern and, among other things, that the beneficiary has no substantial doubt as to the business’s ability to continue as a going concern. Recipients will need to review the definitions in the certification to determine whether they have met all the criteria.
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South Dakota Small Business Grant Overview
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South Dakota Small Business Grant Application Tips
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Program Details
$400,000,000 in federal funds for grants up to $500,000* (and no less than $500*) per qualifying business. Eligible businesses must be located in South Dakota; have a reduction in business of at least 15 percent*; and not have gross revenues exceeding $38.5 million.
Grant amounts are based on cash flow from operations March through August:
Grants will be made based on a pro-rata share of available funds. After applying, we anticipate that application review will take about a month before funds will be dispersed. Because the number of applicants is unknown, it is important to complete an application if you have any desire to access available funds, even if you don’t think you qualify.
Dispersal of funds:
All funds must be dispersed by December 30, 2020, so if there are limited applicants and funds remaining, the provisions of the program may be changed. That means only businesses that have submitted applications by the deadline would be eligible for additional funds, even if they were ineligible in the first round.
*Grant program changes as of October 22
$400,000,000 in federal funds for grants up to $500,000* (and no less than $500*) per qualifying business. Eligible businesses must be located in South Dakota; have a reduction in business of at least 15 percent*; and not have gross revenues exceeding $38.5 million.
Grant amounts are based on cash flow from operations March through August:
- “2019 cash flow from operations” is 2019 income (March through August) minus 2019 cash expenses (March through August, excluding depreciation, amortization, and noncash expenses) minus term debt principal payments (March through August);
- “2020 cash flow from operations” is 2020 income (March through August) minus 2020 cash expenses (March through August, excluding depreciation, amortization, and noncash expenses) minus term debt principal payments (March through August);
- “Federal aid” is any Paycheck Protection Program (PPP) funds or other federal COVID funding received by the business in 2020; and
- “Reduction in business” is 2020 cash flow from operations minus 2019 cash flow from operations plus Federal aid.
- Accrual, as well as cash-basis accounting, will now be accepted in the application*
Grants will be made based on a pro-rata share of available funds. After applying, we anticipate that application review will take about a month before funds will be dispersed. Because the number of applicants is unknown, it is important to complete an application if you have any desire to access available funds, even if you don’t think you qualify.
Dispersal of funds:
All funds must be dispersed by December 30, 2020, so if there are limited applicants and funds remaining, the provisions of the program may be changed. That means only businesses that have submitted applications by the deadline would be eligible for additional funds, even if they were ineligible in the first round.
*Grant program changes as of October 22
South Dakota’s Small Business Start-Up Grant Program
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On October 5, the legislature also passed funding authority for a $10 million Small Business Start-Up Grant Program, designed to provide direct grants to new businesses negatively impacted by COVID-19. The application process is slated to begin on October 12, 2020 and end on October 30*. This program is for businesses that registered with the Secretary of State or the Department of Revenue between September 1, 2019 and June 1, 2020. View the fact sheet for full details on this program.
Applications are no longer being accepted for this program.
For more information on the Grant Program, click here.
*Grant program changes as of October 22
Click here for SDRA compiled guidance on steps to take if you have an employee test positive for COVID-19.
HR Questions? Jackson Lewis prepared FAQ's to provide guidance for employers. Click here to view.
Keeping Your Employees Safe: How to protect your staff and business
To learn more visit the state's official website: covid.sd.gov
Center for Disease Control and Prevention
South Dakota Department of Labor COVID-19
HR Questions? Jackson Lewis prepared FAQ's to provide guidance for employers. Click here to view.
Keeping Your Employees Safe: How to protect your staff and business
- Wash hands for at least 20 seconds or use an alcohol-based hand sanitizer that contains 60- 95% alcohol.
- Avoid touching your eyes, nose, and mouth with unwashed hands.
- Clean and disinfect objects and surfaces that have been touched (counters, doorknobs, toilets, phones, menus, etc.).
- Make sure alcohol-based hand sanitizer is available for customers to use.
- Clean and sanitize any objects or surfaces that may have been touched.
To learn more visit the state's official website: covid.sd.gov
Center for Disease Control and Prevention
South Dakota Department of Labor COVID-19
Phase 1 Federal Legislation
Emergency supplemental funding signed into law on March 5. ($8.6 billion)
Phase 2 Federal Legislation | Families First Coronavirus Response Act
Phase 2 was signed into law by President Trump. ($100 billion). Among other things, this law requires health insurers to cover the costs of testing for and treatment of COVID-19 at no cost to policyholders, provides $1 billion for SNAP and other nutrition assistance programs, and includes two new paid leave mandates on private employers with less than 500 employees:
Updated 4-3 The Department of Labor (DOL) has promulgated temporary regulations to implement provisions of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act which were enacted as part of the Families First Coronavirus Response Act, Public Law 116-127 (FFCRA), in response to the COVID-19 pandemic. Click here to read a full summary from Jackson Lewis Law Firm.
Emergency supplemental funding signed into law on March 5. ($8.6 billion)
Phase 2 Federal Legislation | Families First Coronavirus Response Act
Phase 2 was signed into law by President Trump. ($100 billion). Among other things, this law requires health insurers to cover the costs of testing for and treatment of COVID-19 at no cost to policyholders, provides $1 billion for SNAP and other nutrition assistance programs, and includes two new paid leave mandates on private employers with less than 500 employees:
- Emergency Family and Medical Leave Act expansion: provides leave for an employee who is unable to work due to a need to care for the employee’s child if that child’s elementary or secondary school or place of care has been closed or the childcare provider is unavailable due to a public health emergency. The paid Family and Medical Leave and paid sick time mandates will sunset on December 31, 2020.
- Emergency Paid Sick Leave Act: 80 hours of paid sick leave for full-time employees for specific criteria related to COVID-19.
Updated 4-3 The Department of Labor (DOL) has promulgated temporary regulations to implement provisions of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act which were enacted as part of the Families First Coronavirus Response Act, Public Law 116-127 (FFCRA), in response to the COVID-19 pandemic. Click here to read a full summary from Jackson Lewis Law Firm.
Phase 3 Federal Legislation | CARES Act
The Senate passed the third COVID-19 economic relief package on March 26. The CARES (Coronavirus Aid, Relief, and Economic Security) Act will provide critical financial relief for American workers, families and small businesses impacted by the coronavirus outbreak. View highlights of the Act's provisions below from the National Retail Federation, click here to read the entire summary.
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Small Business “Paycheck Protection Program”
Provides $350 billion to support loans through a new Paycheck Protection Program for:
As of May 8, 20,315 South Dakota businesses received $1,676,714,573 in Paycheck Protection Program assistance! |
Loan Program and Credit Facility
$500 billion for loans and loan subsidies and support for Federal Reserve credit facilities. This means both direct and indirect lending. Unemployment Insurance Provisions The CARES Act includes assistance for unemployment as a result of COVID-19 for a broad swath of individuals. To be covered, an individual must not be eligible for regular compensation or extended benefits under state or federal law and cannot be receiving paid sick leave or other paid leave benefits. Business Tax Provisions The bill includes several tax provisions to provide retailers with additional liquidity and help offset the cost of retaining employees during this period of economic decline. Leave Provisions There are a few leave-related provisions in the CARES Act, primarily technical corrections to the COVID-II leave mandates for employers with fewer than 500 employees. |
Small Business Administration (Finally) Clarifies Paycheck Protection Program Necessity Certification
Provided by Jackson Lewis
Recent statements by Small Business Administration (SBA) and Treasury Department officials have confused many Paycheck Protection Program (PPP) borrowers and led many to return PPP funds or consider doing so. Finally, the SBA has issued FAQ 46, which should assuage many borrowers’ concerns.
Previously, the SBA notified borrowers through a number of pronouncements that they must consider “their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business” in determining whether their certification was made in good faith. This was a surprise as the certification in the PPP loan application that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant” did not appear problematic during the COVID-19 pandemic. This guidance, along with statements by Treasury officials (including Secretary Steven Mnuchin), led many employers to have serious reservations about their use of PPP funds.
Click here to read the full article. Click here to view the Treasury PPP FAQ.
Previously, the SBA notified borrowers through a number of pronouncements that they must consider “their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business” in determining whether their certification was made in good faith. This was a surprise as the certification in the PPP loan application that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant” did not appear problematic during the COVID-19 pandemic. This guidance, along with statements by Treasury officials (including Secretary Steven Mnuchin), led many employers to have serious reservations about their use of PPP funds.
Click here to read the full article. Click here to view the Treasury PPP FAQ.
Paycheck Protection Program (PPP) Flexibility Act
Both houses of Congress have passed the Paycheck Protection Program (PPP) Flexibility Act, and it was signed into law by President Trump making significant improvements. The legislation recognizes the gradual recovery for businesses over the coming months and reflects the flexibility that is needed to safely and successfully get back to normal. Click here to view a comparison of the current and proposed PPP restrictions from the National Restaurant Association.
How does this impact your PPP loan?
Both houses of Congress have passed the Paycheck Protection Program (PPP) Flexibility Act, and it was signed into law by President Trump making significant improvements. The legislation recognizes the gradual recovery for businesses over the coming months and reflects the flexibility that is needed to safely and successfully get back to normal. Click here to view a comparison of the current and proposed PPP restrictions from the National Restaurant Association.
How does this impact your PPP loan?
- "Covered Period" is now 24 weeks (originally 8 weeks), or until December 31, 2020.
- The required payroll ratio is lowered to 60% (from 75%).
- Up to 40% allowed for utilities, mortgage interest, etc. (from 25%).
- Removes forgiveness reduction for businesses that were unable to rehire employees or hire new employees to return to pre-disaster employment levels.
- Extends the loan term to 5 years at 1%.
- Borrowers have 10 months from the end of the covered period to submit a forgiveness application.
- Owners can receive PPP and are still allowed to defer payroll taxes.
SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less
On October 8, The U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.
SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020. SBA will continue to process all PPP forgiveness applications in an expeditious manner.
On October 8, The U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.
SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020. SBA will continue to process all PPP forgiveness applications in an expeditious manner.
- Click here to view the simpler loan forgiveness application.
- Click here to view the instructions for completing the simpler loan forgiveness application.
- Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.
Second Round of PPP
On Wednesday, January 6, The Small Business Administation (SBA) and Treasury released their official guidance on how the second round of PPP will work. The National Restaurant Association has distilled it into a seven-page “PPP User Manual”. Click here to view the document.
SBA announced that PPP will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
SBA announced that PPP will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
Phase 4 Federal Legislation | American Rescue Plan Act
On March 11, President Biden signed the American Rescue Plan Act into law, which provides additional relief for the nation’s small businesses and hard-hit industries. The new plan includes:
Note: An increase in the federal minimum wage to $15 was initially proposed in this legislation, but was removed before passage and did not go into effect.
On March 11, President Biden signed the American Rescue Plan Act into law, which provides additional relief for the nation’s small businesses and hard-hit industries. The new plan includes:
- $7.25 billion extra for the Paycheck Protection Program, including the expansion of eligibility to additional nonprofits and digital news services.
- Additional funds are allocated for the Shuttered Venue Operators Grant program and now allows businesses to apply for both a PPP loan after December 27, 2020, and the SVOG.
- $15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments, including NEW $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit.
- NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants. See more information below.
- NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
- NEW: 100 % COBRA Subsidy from April Through September Recoverable by Employers Through Tax Credits. Click here to read more information from Jackson Lewis.
Note: An increase in the federal minimum wage to $15 was initially proposed in this legislation, but was removed before passage and did not go into effect.
3 Things to Know About the Restaurant Revitalization Fund (RRF) From the U.S. Small Business Administration |
1. Get the program details.
Get the program details such as eligibility, funding amount, allowable use of funds and more. If you haven’t already, sign up for RRF email updates.
Get the program details such as eligibility, funding amount, allowable use of funds and more. If you haven’t already, sign up for RRF email updates.
2. How to prepare.
Currently, SBA is not accepting applications for RRF. However, you can prepare your application by reviewing the sample application, program guide and cross-program eligibility chart on SBA COVID-19 relief options. You will be able to apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.
Currently, SBA is not accepting applications for RRF. However, you can prepare your application by reviewing the sample application, program guide and cross-program eligibility chart on SBA COVID-19 relief options. You will be able to apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.
3. When to apply.
- Registration opens at 8:00 a.m. CT, Friday, April 30 at restaurants.sba.gov
- The Restaurant Revitalization Fund (RRF) begins accepting applications from eligible entities on Monday, May 3 at 11:00 p.m. CT.
USDA Publishes SNAP Online Purchasing Q&A for Retailers
The U.S. Department of Agriculture’s Food and Nutrition Service (FNS) has posted a document to its website containing technical questions and answers for retailers interested in participating in Supplemental Nutrition Assistance Program (SNAP) online purchasing. The document includes frequently-asked questions regarding SNAP online transactions, refunds, interoperability amongst states, and more. USDA opened up the application process to all retailers and states at the beginning of the COVID-19 pandemic, and almost all 50 states have launched to date.
The National Grocers Association is advocating for provisions that would make it more feasible for independents to participate in SNAP online purchasing to be included in the next COVID-19 bill that Congress is currently negotiating. Click here to read FNS’ SNAP online Q&As, which may be updated as additional technical questions are received.
The U.S. Department of Agriculture’s Food and Nutrition Service (FNS) has posted a document to its website containing technical questions and answers for retailers interested in participating in Supplemental Nutrition Assistance Program (SNAP) online purchasing. The document includes frequently-asked questions regarding SNAP online transactions, refunds, interoperability amongst states, and more. USDA opened up the application process to all retailers and states at the beginning of the COVID-19 pandemic, and almost all 50 states have launched to date.
The National Grocers Association is advocating for provisions that would make it more feasible for independents to participate in SNAP online purchasing to be included in the next COVID-19 bill that Congress is currently negotiating. Click here to read FNS’ SNAP online Q&As, which may be updated as additional technical questions are received.
SDA APPROVES SOUTH DAKOTA TO ACCEPT SNAP BENEFITS ONLINE
U.S. Secretary of Agriculture Sonny Perdue announced on June 5 the approval of a request from South Dakota to provide online purchasing of food to Supplemental Nutrition Assistance Program (SNAP) households.
This approval will allow South Dakota to expedite the implementation of online purchasing with currently authorized SNAP online retailers with a target start date to be announced at a later time. South Dakota’s SNAP participation is more than 75,000 individuals, more than 35,000 households, and totals $122 million annually in federal benefits.
Visit fns.usda.gov/snap/online-purchasing-pilot for updates and more information. Visit fns.usda.gov/snap/retailer-requirements-provide-online-purchasing to apply for the Online Purchasing Pilot.
U.S. Secretary of Agriculture Sonny Perdue announced on June 5 the approval of a request from South Dakota to provide online purchasing of food to Supplemental Nutrition Assistance Program (SNAP) households.
This approval will allow South Dakota to expedite the implementation of online purchasing with currently authorized SNAP online retailers with a target start date to be announced at a later time. South Dakota’s SNAP participation is more than 75,000 individuals, more than 35,000 households, and totals $122 million annually in federal benefits.
Visit fns.usda.gov/snap/online-purchasing-pilot for updates and more information. Visit fns.usda.gov/snap/retailer-requirements-provide-online-purchasing to apply for the Online Purchasing Pilot.
