Funding options for small businesses
RAPID CITY, S.D. — Throughout the pandemic, paycheck protection program funds were distributed to businesses, allowing them to pay employees, but those funds have dried up, and some small businesses are still in need of resources for the upcoming year.
Although PPP funds will no longer be distributed, there are a number of programs, loans and grants businesses can use to stay afloat if necessary. Through the SBA, there is the Economic Injury Disaster Loan and Shuttered Venue Operators Grant for music venues and museums.
With record growth in major industries across the state, many South Dakota businesses are now moving past survival, and trying to grow and fully staff their businesses.
“This is creating some significant wage pressure, and pressure for affordable housing in our whole region,” said SD Market President of First Interstate Bank, Shawn Rost. “And all those items are making it harder for us to find employees to bring into our area to hire.”
Looking ahead, Elevate Rapid City has started an employee relocation grant, that would provide between $500 and $2,000 per employee, but pay and lifestyle play also play a role. Expectations are that there will continue to be a rise in remote employees, as well as people opting out of the workforce and low wage jobs.
“Are you being competitive in your pay and benefits with your employees,” said Rost. “There’s a war on talent right now. Every business needs to hire more people. Take care of your employees, there’s been a paradigm shift in this economy and there’s so much demand for labor right now and wage pressure that it’s making all businesses look at how their pricing and staffing.”
Although most industries in the state are thriving, agriculture has been hit hard by the drought.
“There is some declarations for drought in some of our counties, and I expect more to come under that drought designation, which will open up funding for them through the federal and possible state levels,” said Rost. “So I think there will be more help coming in that regard as the summer progresses if this drought holds.”
Regardless of the situation, for those looking to expand and grow their businesses it is recommended to talk with a banker to create a plan moving forward.