Regulatory Alerts2020-01-01
South Dakota Division of Banking Memorandum on Senate Bill 166 Business-to-Business Lending Exemption
The South Dakota Division of Banking issued a memorandum to money lenders explaining Senate Bill 166, which creates a business-to-business lending exemption from rate limitations established by Initiated Measure 21. The bill defines this exemption as applying only to loans of at least five thousand dollars made to borrowers with federal employer identification numbers for commercial purposes. The Division clarifies that unfunded commitments do not count toward the minimum loan amount, meaning only actually extended funds qualify for the exemption.
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