The commissioner may make loans from the disaster relief subfund to small businesses adversely affected by the COVID-19 state of emergency. The commissioner shall approve loans from the disaster relief subfund upon terms established by the commissioner. Loan proceeds may be used for business purposes as approved by the commissioner. A loan from the disaster relief subfund under this section must meet each of the following criteria:

(1) The loan may not exceed seventy-five thousand dollars;

Terms Used In South Dakota Codified Laws 1-16G-87

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC

(2) The interest rate on the loan must not be at a rate greater than zero percent; and

(3) The loan may not include any fee for processing, administering, or servicing of the loan, except in the case of a default by the borrower.

Source: SL 2020, ch 3, § 3, eff. Mar. 31, 2020.

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