Business loan program advances in LegislaturePIERRE — State government would open a new financing program that would help South Dakota businesses needing loans for working capital, under a measure passed Monday by the state Senate.
By: Bob Mercer, Republic Capitol Bureau
PIERRE — State government would open a new financing program that would help South Dakota businesses needing loans for working capital, under a measure passed Monday by the state Senate.
The money would originate from the federal government. South Dakota is due to receive a total of $13 million of federal aid over three years.
The money can be used to partner with banks on businesses’ financing, said Sen. Tom Nelson, R-Lead.
The program would be administered by the Governor’s Office of Economic Development. But it wouldn’t require any additional state funding, according to Nelson.
Senators voted 29-6 in favor of the legislation.
The federal aid was appropriated by Congress as part of the Small Business Jobs Act of 2010.
Sen. Stan Adelstein, R-Rapid City, tried to amend the bill to add the safeguard of an additional loan-review committee. Nelson argued that it was unnecessary. The amendment failed 24-11.
Adelstein also attempted to limit the loans to a maximum of 20 percent of the book value or net worth of the borrower’s business. That amendment failed 24-11, too.
The legislation, Senate Bill 11, was introduced on behalf of the Daugaard administration. The bill now moves to the House of Representatives for action.