Legislative Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer
10/14/2020

I hope everyone is having a great week! With the election less than a month away, partisan politics appear to be at an all-time high. We are still awaiting an agreement regarding the next wave of pandemic relief legislation between House Democrats and President Trump that can also gain enough GOP support in the Senate. We continue to advocate for the inclusion Senator Cramer’s (R-ND) Paycheck Protection Small Business Forgiveness Act in this next wave, which offers forgiveness for PPP loans of $150,000 or less if the borrower submits a simple, one-page attestation form to the lender. However, if you have paid attention to the media this week you know Senate floor time is consumed with the confirmation hearings for Amy Coney Barrett, President Trump’s Supreme Court Justice nominee to replace the late Ruth Bader Ginsburg.

Trump Administration Simplifies PPP Forgiveness for Loans of $50,000 or Less. 

While Senator Cramer’s forgiveness legislation is stuck in partisan limbo, the U.S. Small Business Administration (SBA), working with Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less late last week. 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.

We appreciate President Trump and Secretary Steven Mnuchin for their leadership and support in taking this huge first step toward simplifying the PPP forgiveness process. SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020. SBA has stated it will continue to process all PPP forgiveness applications in an expeditious manner. You can view the full press release from the SBA here.

Governor Noem Announces Small Business and Healthcare Provider Relief Program. 

Also late last week, SD Governor Kristi Noem announced the launch of the Small Business and Healthcare Provider Relief Program, which will utilize up to $580 million in Coronavirus Relief Fund (CRF) dollars to assist small businesses, community-based healthcare providers, and non-profits negatively impacted by the COVID-19 pandemic.

There are five components of this program:

  • The Small Business COVID Interruption program will provide up to $400 million to help eligible South Dakota small businesses who experienced a reduction in business as a result of the pandemic. Specifics can be found here.
  • The Small Business Startup program will provide up to $10 million in direct grants to recently started eligible South Dakota businesses whose growth has been impacted as a result of the pandemic. Specifics can be found here.
  • The Acute Care in Hospitals program will provide up to $15 million to eligible hospitals that are licensed by the state to provide acute inpatient care. Specifics can be found here.
  • The Small Nonprofit COVID Interruption program will provide up to $40 million to eligible South Dakota small nonprofits who have experienced negative impact as a result of the pandemic. Specifics can be found here.
  • The Community Based Healthcare Providers program will provide up to $115 million for eligible community providers who have experienced a reduction in business as a result of the pandemic. Specifics can be found here.

Eligible businesses and organizations will be able to apply for these various grants from October 13-23, 2020. For assistance, please contact the state’s call center from 8:00 am to 5:00 pm Monday through Friday at 605-937-7243. You can also email covid.bizgrants@state.sd.us or covid.healthcaregrants@state.sd.us.

Have a great week, stay well, and don’t hesitate to contact me with any questions.

 

 

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