Small Business Lending In Grow South Dakota-Offering The Community A Voice
Wednesday, October 20, 2021
For a business to succeed, financing plays a huge role in the entrepreneurial landscape. GROW South Dakota was formed to provide housing, community, and economic development statewide. It has had a broad and lasting impact on the small business community. Through its business lending program, it continues to serve the communities of South Dakota by providing technical assistance and small business loans. Over the years, GROW South Dakota has deployed 2,298 business loans to 1,413 businesses, financing over $89.5 million.
Any new or existing business in the GROW South Dakota service area may qualify for a loan. With loan amounts ranging anywhere from $500 on up, the business loans can be used for a variety of purposes like investments in inventory, real estate, and equipment. As a statewide, low-interest lender, GROW South Dakota may consider the entire loan or may consider partnerships with banks. If approved, the business owner will receive loan capital to be paid back with regular payments and a fixed interest rate.
Valuable technical assistance to new and existing borrowers is offered during the lending process. Owners can gain expertise in the day-to-day running of the business with the training imparted in QuickBooks and Google. When applying, borrowers are required to submit their financial statements, business plans, and future projections. If they do not have these, they will be given the necessary resources to assist them.
An Excellent Loan Repayment Record
Low-interest rates coupled with a stream of technical assistance to both new and existing business owners have seen some excellent loan repayments over the years.
Once GROW South Dakota has received a completed loan application and the borrower has furnished any additional information that was requested, the process is quick and confidential. Loan officer and SBDC consultant, Mark Nelson, states that businesses can prove repayment ability by either providing historical financials or by generating cash flow projections. As for the average time frame for processing, from application to the final disbursement, Mark says that it would depend upon the size of the loan.
An Easy Process
As borrowers from the lending program, Casey and Jacque Cameron, who took over Jean’s Bridal, a one-stop bridal shop in 2019 are all praise for the experience. “The whole process was pretty easy and we found them helpful whenever we had a question,” says Jacque. “ They met us at the business and did a thorough walk-through with us, highlighting every step of the process. They also went through the financials with us to see if it’d be a good business venture before we jumped all in. Great to work with, a great attitude overall”, Jacque affirms.
Through business lending partnerships like these, an ecosystem for business Growth and expansion is created as members of the GROW South Dakota community get more involved and mutually benefit each other as they help their businesses and the economy to evolve and prosper.
For more information visit www.GROWsd.org/business-lending/faq.