New downtown microlending program aimed at existing businesses

From staff reports

Existing downtown businesses that have expanded hours, lost revenue because of external circumstances or expanded in other ways are eligible for a new microloan program.

The program from Downtown Sioux Falls Inc. will offer loans ranging from $2,500 to $10,000 for businesses that have been established for at least one year.

Existing downtown businesses that have experienced one or more of the following conditions will be considered for loan funding:

  • Experienced loss of revenue because of external circumstances that have negatively affected business operations.
  • Extended hours to 8 p.m. for at least five days a week, showing a three-month track record.
  • Converted nonretail uses, such as office to retail.
  • Expanded the retail floor area.

Before submitting an application, interested businesses are required to consult with a SCORE counselor for recommendation of a customized business plan, so that potential pitfalls can be avoided.

The microfinance loans are not available to off-sale alcohol beverage establishments, tobacco shops, payday loan businesses, pawn shops or other businesses deemed to be predatory or detrimental to the community.

Up to $100,000 has been allocated from the Downtown Economic Incentive Fund, which also supports the Retail Incubator Program. The incubator program provides subsidies for new retail concepts downtown and continues to grow strong interest, DTSF said in a statement.

“While the Retail Incubator Program does a fantastic job of attracting new businesses to downtown, the Micro-Finance Program will ensure that businesses have the financial support to stay downtown if needed,” said DTSF president Joe Batcheller.

Interested business members can download an application from the DTSF website at dtsf.com or call 338-4009.

 

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New downtown microlending program aimed at existing businesses

Existing downtown businesses that have expanded hours, lost revenue because of external circumstances or expanded in other ways are eligible for a new microloan program.

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