Delegation Urges SBA to Grant South Dakota’s Economic Loan Request

Pat Powers

Delegation Urges SBA to Grant South Dakota’s Economic Loan Request

Washington, D.C. – U.S. Representative Dusty Johnson (R-S.D.) and U.S. Sens. John Thune (R-S.D.) and Mike Rounds (R-S.D.) today urged the United States Small Business Administration to grant South Dakota Governor Kristi Noem’s request to activate the Economic Injury Disaster Loan (EIDL) program due to the COVID-19 pandemic.

“The State of South Dakota has taken strong, pro-active steps to mitigate the effects of this pandemic,” the delegation wrote. “Governor Noem declared a State of Emergency for South Dakota on March 13, 2020, recommended the closures of schools, and issued an executive order for non-essential employees to work remotely. Despite these efforts, South Dakota small businesses are experiencing significant economic hardships from COVID-19. More must be done to provide financial assistance during this trying time, therefore we ask for fair and immediate consideration of Governor Noem’s request.”

Full text of the letter below: 

The Honorable Jovita Carranza
Administrator
U.S. Small Business Administration
409 3rd Street, S.W.
Washington, D.C. 20416

Dear Ms. Carranza,

We write to share our support of South Dakota Governor Kristi Noem’s March 16, 2020, request for the U.S. Small Business Administration (SBA) to activate the Economic Injury Disaster Loan (EIDL) program in South Dakota resulting from the effects of the COVID-19 pandemic.

The State of South Dakota has taken strong, pro-active steps to mitigate the effects of this pandemic. Governor Noem declared a State of Emergency for South Dakota on March 13, 2020, recommended the closures of schools, and issued an executive order for non-essential employees to work remotely.

Despite these efforts, South Dakota small businesses are experiencing significant economic hardships from COVID-19. More must be done to provide financial assistance during this trying time, therefore we ask for fair and immediate consideration of Governor Noem’s request.

We are confident in the ability of our federal, state, and local officials to work together to protect our communities during this pandemic. We thank the administration in advance for its response and willingness to support small businesses.

Sincerely,

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4 thoughts on “Delegation Urges SBA to Grant South Dakota’s Economic Loan Request”

  1. https://disasterloan.sba.gov/ela/Information/EIDLLoans

    As a small business owner, this bit concerns me:

    “EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.”

    I mean, I’m sure several small businesses in South Dakota fall in that group, but the vast majority can just call up the bank… and pay more than 4% for operating capital. I’m not sure that loans do much good when what I really need is customers. I s’pose it helps me keep the door open… for awhile… but depending on how long this garbage continues, I’m not sure now is the time for taking on even more debt.

    Ugh.

    1. I am curious about this as well, as corporate debt is already at an all-time high given the cheap rates businesses were getting. Is the real solution being presented yet even more debt? At some point, these business are going to need to pay this back as interest gobbles up more of what’s left after the P&L.

    2. Rep Latterell why do you not support small business also what small business do you have

      1. Uh, I’m afraid you’ve confused me – not only with someone else, but with your assertion that I don’t support small business. FFS, it’s right there in the first sentence – “as a small business owner”. What would be your solution to “support” small businesses? Loans ain’t gonna do it. I’ve already got enough debt, and I sure as sh!t don’t want to take on more in uncertain conditions. Anecdotally, I’m fairly certain most other small business owners don’t want to either.

        Gimme some fat, juicy government contracts, yo.

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