The South Dakota state Legislature approved a bill outlining how the state will allocate the remaining federal CARES Act funds last week. Part of the plan includes several grant programs to help support businesses and community health care providers whose operations have been impacted by COVID-19.

Applications for the Small Business COVID Interruption, Small Nonprofit COVID Interruption, Small Business Startup, Community Based Healthcare Providers, and Acute Care in Hospitals Programs opened on Oct. 13 and will close on Oct. 23.

The Application ProcessApplying for grant funding is the same for each grant offered. Businesses can submit online applications with all required documents at https://covid.sd.gov/smallbusiness-healthcaregrants.aspx before Oct. 23.

Applications will be reviewed after they are fully completed. Applicants will receive a notification indicating grant approval or denial, and if approved, the dollar amount of the grant. To be complete, the application must be submitted through the application portal with all requested documentation. Once the application has been initiated, the applicant will be provided with log-in credentials. The applicant may re-enter the application portal to access the application in order to complete the application and track its status once submitted. Once all applications for a program are received, final award amounts will be calculated on a pro-rata share of available funds. Awards will be issued to qualifying grant recipients.

The following is a brief summary of each grant program, how to determine eligibility, and how to apply. For more detailed information, visit https://covid.sd.gov/smallbusiness-healthcare-grants.aspx. Live virtual office hour times can also be accessed on the site. For questions and application assistance, call 605-937-7243 Monday through Friday, 8 a.m. to 5 p.m., email covid.bizgrants@state.sd.us or covid.healthcaregrants@state.sd.us.

Small Business COVID InterruptionFunding: $400 million, $100K per business maximum, awarded based on reduction in business

Purpose: Support South Dakota small businesses with under $38.5 million in gross revenue for 2019 that have been impacted by COVID-19

Eligibility: Must be physically located in South Dakota, meet financial criteria, provide certification that business is a going concern

Required documents: Secretary of State Registration; Department of Revenue sales & use tax license; W-9; contact information (phone, email, physical address); business tax ID number (SSN or EIN, if applicable); bank account information for electronic payment of funds; government-issued ID; if applicable, articles of incorporation or organization; and if applicable, Certificate of Good Standing from South Dakota Secretary of State.

For businesses with greater than $150,000 in 2019 revenue, provide your 2019 tax return and a detailed Profit/Loss Statement on a cash basis for March – August 2019 and March August 2020.

For businesses with less than $150,000 in 2019 revenue, provide your 2019 tax returns and 2020 income and expenses on a cash basis for March – August 2020.

Grant amount calculation: 2019 cash flow from operations — 2020 cash flow from operations — federal COVID-19 aid = eligible amount for “reduction in business”

Small Nonprofit COVID InterruptionFunding: $40 million, $100K per nonprofit maximum, awarded based on reduction in business

Purpose: Support small nonprofits in South Dakota with under $38.5 million in 2019 gross revenue that have been impacted by COVID-19

Eligibility: Must be physically located in South Dakota, meet financial criteria, provide certification that nonprofit is a going concern

Required documents: Same as Small Business COVID grant, IRS letter confirming nonprofit status, or the Secretary of State certification of nonprofit status, and the first page of 990 filing from 2019

Grant amount calculation: 2019 cash flow from operations — 2020 cash flow from operations — federal COVID-19 aid = eligible amount for “reduction in business”

Small Business Startup ProgramFunding: $10 million, $100K per business maximum, awarded by percentage of cash expenses

Purpose: Support small business startups in South Dakota established between Sept. 1, 2019 – June 1, 2020 that have been impacted by COVID-19

Eligibility: Must be physically located in South Dakota, meet financial criteria, provide certification that the business is a going concern, be a registered business between Sept. 1, 2019 — June 1, 2020, and be open and operating on the date of application. Eligibility can be calculated by either reduction in average monthly income OR net operating loss. Average monthly income from Mar. 1-Aug. 31 should be less than 1.2 times the average monthly income prior to Mar. 1. Net operating loss should demonstrate that the business operated at a net loss on a cash basis in at least three of the six months between Mar. 1 and Aug. 31, 2020.

Required documents: Same as Small Business COVID grant, small business startup calculation worksheet (located at https://covid.sd.gov/smallbusiness-healthcare-grants.aspx)

Grant amount calculation: 2020 cash expenses (March-August, not including depreciation, amortization and other non-cash expenses, capital expenditures may be included) — federal COVID-19 aid x 20% = maximum eligible amount. The final award will be based on a pro-rata share of available funding.

Community Based Healthcare ProvidersFunding: $115 million, awarded based on reduction in business

Purpose: Support community based health care providers funded by the state through Medicaid or other federal or state dollars, which can include nursing homes, assisted living facilities, residential treatment facilities, senior nutrition, in-home services, adult daycare, IDD providers, and behavioral health providers.

Eligibility: Must be licensed or otherwise authorized by the state and provide services funded by the state through Medicaid or other federal or state funding through DSS, DOC, or DHS. Other healthcare providers may be eligible to apply under the small business grant programs.

Required documents: Point of contact information (phone, email, physical address), TIN or EIN number, bank account information for electronic payment of funds, profit & loss statement for March through September 2019, profit & loss statement for March through September 2020, actual revenue and expense information (no estimated revenues or expenses), separate identification of all COVID-19 Federal Aid received through September 2020, and identification of any other planned or pending application to the federal government for COVID-19 relief.

Grant amount calculation: 2020 net (gross revenue — gross expenses for March-September 2020) — 2019 net (gross revenue — gross expenses for March-September 2019) + federal COVID-19 aid = eligible amount for “reduction in business.” The final award will be based on a pro-rata share of available funding.

Acute Care in HospitalsFunding: $15 million, awarded based on reduction in business

Purpose: Support acute care in hospitals, which can include PPS, CAH, and speciality hospitals and in-patient hospice that are licensed to provide acute care services in South Dakota who have been impacted by COVID-19.

Eligibility: Must be licensed or otherwise authorized by the state and provide services funded by the state through Medicaid or other federal or state funding through DSS, DOC, or DHS.

Required documents: same as Community Based Healthcare Providers grant

Grant amount calculation: same as Community Based Healthcare Providers grant

Load comments