Micro-Finance Loan

The DTSF Micro-Finance Program was established in 2017 to provide financial support for DTSF’s business members. The program offers loans ranging from $2,500 to $10,000.

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

  • Experienced loss of revenue due to external circumstances that has negatively impacted business operations.
  • Extended hours to 8:00pm for at least five days per week, showing a three-month track record.
  • Converted non-retail uses, such as office to retail.
  • Expanded the business retail floor area.

Conditions

  • Loans amounts range between $2,500 and $10,000.
  • Repayment terms shall be no longer than 24 months.
  • Payments are interest free for the first twelve months.
  • Interest accrues at the prime rate, as listed in the Wall Street Journal on the day the loan is approved for the second year of the loan.
  • Outstanding loan debt beyond the 24 month term will accrue at the prime rate plus 5%.
  • Regardless of the prime rate, all interest rates are capped at 12%.
  • Applicants must fulfill the terms of the DTSF Micro-Finance Program before becoming eligible to re-apply.

Ineligible Businesses

  • Tobacco shops, or related businesses;
  • Off-sale alcohol beverage establishments, as defined in Section 160.005, Code of Ordinances of Sioux Falls, South Dakota;
  • Adult uses, as defined in Section 160.005, Code of Ordinances of Sioux Falls, South Dakota;
  • Pawn shops;
  • Payday loan businesses;
  • Businesses deemed to be predatory or detrimental to the community.

Business Considerations

Please address the following issues in a separate document. Your will need to present this document to a SCORE counselor before you submit your application to DTSF. The final draft will need to incorporate the recommendations of SCORE counselor and any subsequent business consultations.

  1. Prepare a cost of goods sold analysis and an operating budget.
  2. Explain your current debt obligations.
  3. Explain your business’s sales history for the last year.
  4. Explain your sales goals for the next two years.
  5. Explain your cash flow projections for the next two years.
  6. Explain your marketing strategy.

For expanding businesses:

  1. How will you meet your business’s staffing requirements?
  2. What do you expect the management implications will be?
  3. For retail businesses, what is you visual merchandising strategy?

SCORE Consultation

Once you have prepared this document, make arrangements to meet with a SCORE counselor at the Small Business Administration office (605-330-4243), located at 2329 North Career Avenue,  #105.

A SCORE counselor will help you determine what further information is needed to vet your business’s
capacity for micro-financing. Subsequent steps may include:

  • An ongoing mentorship with a SCORE counselor,
  • The full development of a business plan,
  • Consultations with the small business development center or other like services.

This list is not an all-inclusive, however, each of these steps may not be necessary to complete your application either. Further steps to be taken will be determined by your SCORE counselor. The intent of this process is to perform a strength test on your business concept so that potential pitfalls can be avoided.

Additional Resources:

National SCORE registry of industry-specific counselors: www.score.org/find-mentor
SBA Business Plan Template: www.sba.gov/starting-business/write-your-business-plan

Review Process

The Business Development Committee will conduct the initial review on the third Monday of each month. Applicants will need to submit a completed application with signed checklists and a current business plan by the close of business on the second Monday of the month in order to be on the agenda for the Business Development Committee. Recommendations for approval will be forwarded to the DTSF Board of Directors for a formal decision. Conditions of this program are subject to change, as recommended by the Business Development Committee.

Application Requirements, Process, and Recommended Steps

  1. Review the application to see is your business would qualify. Contact the DTSF office at 605-338-4009 or info@dtsf.com if you are unsure.
  2. Prepare your application. Please note that qualifying businesses can have only the equivalent of eight or fewer full time employees, or 16,640 total hours worked for the entire year prior.
  3. Prepare a separate document that addresses the business considerations identified on the application. This must be completed before meeting with a SCORE counselor.
  4. Schedule your initial meeting with SCORE, in which a customized consultation with various business resources may be outlined.
  5. After you have concluded the recommended consultations, submit your completed application materials. Please include a revised document addressing the business considerations that you discussed with your SCORE counselor.
  6. DTSF will schedule a review with the Business Development Committee for the third Monday of the month. Final approval will be granted by the DTSF Board of Directors, which meets on the fourth Tuesday of each month.

Micro-Finance Loan Application

Micro-Finance Loan Application

SCORE Evaluation
Have your SCORE counselor complete the following information

SCORE Evaluation

Have your SCORE counselor complete the following information: