Signed by Governor Kristi Noem

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes the small business economic disaster relief subfund.

Highlights:

• Authorizes the Commissioner of the Governor’s Office of Economic Development to make loans from the disaster relief subfund to small businesses adversely affected by the COVID-19 state of emergency (Sec. 3).

• Establishes within the revolving economic development and initiative fund the small business economic disaster relief subfund, and specifies that any unexpended money and interest in the subfund to remain continuously appropriated to the Governor’s Office of Economic Development (Sec. 2).

• Defines “disaster relief subfund” as the small business economic disaster relief subfund (Sec. 1).

• Defines “small business” as a business enterprise with no more than 250 full-time equivalent employees (Sec. 1).

• Specifies that these small business loans shall meet the following criteria, including (Sec. 3):

• They do noot exceeding $75,000;

• The interest rate is not greater than zero percent; and

• They do not include any fee for processing, administering, or servicing of the loan, except in the case of a default by the borrower.

• Requires the Commissioner to provide a report at each regular meeting of the Board of Economic Development containing the following, including (Sec. 4):

• The name of each disaster relief borrower;

• The amount of the loan; and

• The maturity date of the loan.

• Specifies that this report shall be a public document that shall be posted on the Governor’s Office of Economic Development website (Sec. 4).

• Authorizes the state treasurer to transfer $7 million to the disaster relief subfund from the small business credit initiative fund (Sec. 6).

• Authorizes the state treasurer to transfer $1 million to the disaster relief subfund from the value-added agriculture subfund (Sec. 7).

• Authorizes the state treasurer to transfer $1 million to the disaster relief subfund from the Governor’s Office of Economic Development Special Revenue fund (Sec. 8).

• Authorizes the Economic Development Finance Authority to make grants or gifts of up to $2 million to the disaster relief subfund from the agriculture processing and revenue fund (Sec. 9).

• Repeals this act on July 1, 2025 (Sec. 10).

Full Bill Text