FDDC Blog

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SBA 504 Occupancy Requirements

SBA 504 financing is designed for owner-occupied commercial real estate (and equipment). However, leasing a portion of the commercial space is allowed. To be eligible, the borrower must meet SBA’s requirements below:


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How Low Can You Go?

Check out this month’s SBA 20 year and 25 year fixed interest rates. These are the lowest interest rates the SBA 504 loan program has offered in years!
Benefits of working with FDDC and the SBA 504 Loan Program:


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Refinance and Take Advantage of Low Rates

With SBA 504 rates dipping to new lows, your clients may benefit by locking in a fixed rate on existing commercial debt. Remember SBA 504 Debt Refinance is a permanent part of the program and pertains whether you have new or existing clients with qualified debt at least two years old. It is also eligible to take cash out to cover business operating expenses. See the requirements below.


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FDDC Awarded 2018 District Leadership Award

At the Small Business Week Celebration held in May, 2019, First District Development Company (FDDC) was awarded the 2018 District Leadership Award as 504 Dollar Leader by the South Dakota Small Business Administration for the amount of SBA financing secured on behalf of small businesses in 2018.


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Feature 504: Trav’s Outfitter, Watertown, SD

Trav’s Outfitter Incorporated, located in Watertown, South Dakota, is one of First District Development Company’s most recent clients to take advantage of a low, fixed interest rate SBA 504 loan. The 504 loan, in conjunction with a conventional loan offered by American Bank & Trust in Sioux Falls, provided Trav’s Outfitter an attractive financing package featuring manageable debt repayment requirements, which in turn put an ease on their cash flow. Loan proceeds from the 504 and American Bank & Trust were used to construct a new building in Watertown to house Trav’s Outfitter.


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Not Enough Cash? Check Out the 504’s Low Equity Requirements –

When using the 504 program through FDDC, small business owners may be able to get into a commercial fixed asset project with as little as 10% down. Financing is completed with a partner lender at 50% of project costs and FDDC/SBA 504 at 40% of project costs.


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Remember: Refinance is an SBA 504 Option

With SBA 504 rates dipping to new lows, your clients may benefit by locking in a fixed rate on existing commercial debt. Remember SBA 504 Debt Refinance is a permanent part of the program and pertains whether you have new or existing clients with qualified debt at least two years old.


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Bye-Bye Winter, Hello Construction

Construction season is upon us! Now is the time to get your clients’ permanent financing in order. An SBA 504 loan is able to finance 30-40% of the total cost to construct a new building or remodel an existing building.


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Appraisal Threshold Raised for SBA 504

Congress recently passed the Small Business ACE Act which raises the appraisal threshold for 504 loans secured by commercial real estate to match the federal banking regulator appraisal threshold amount for commercial real estate transactions.


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FDDC Makes the SBA 504 Process Easy

1. Contact FDDC – to discuss eligibility to receive SBA 504 financing and the best possible loan structure.
2. Submit an Application – the application form is available on our website: http://fddc.1stdistrict.org. A checklist of items that need to be attached are listed on the application.