SBA 504 financing through FDDC is a perfect choice for a wide variety of projects – no one size, one color, or one pattern fits all here! FDDC is able to spot deals that may have several quirks to them and work their way through the maze to get to the end result – a financed project.
The SBA 504 program is a business economic development loan program. SBA has defined a number of economic development criteria a small business applicant can meet in order to be eligible for 504 financing. One of these criteria, job creation and retention, has recently been changed by SBA… making it even easier for small businesses to be eligible for 504 financing.
The new law raises the SBA 504 appraisal threshold to match the federal banking regulator threshold, which is currently $500,000.
On December 11, 2018, First District Development Company (FDDC) hosted their Annual Celebration in conjunction with recognizing their 35th year anniversary of originating loans. Also, Jennifer Olson with MetaBank in Brookings, SD, was awarded with FDDC’s 2018 Lender of the Year Award.
Shelby Kraemer joined the FDDC team in December of 2018 as a Loan Officer.
Shelby received her Bachelor of Business Administration with a major in Finance from the University of South Dakota in Vermillion, South Dakota. Before coming to FDDC, she worked for the Federal Government, assisting small businesses, banks, and public entities with loans and grants.
The White House cabinet member and head of the U.S. Small Business Administration, Linda McMahon, visited FDDC/SBA’s client as part of her national Ignite Tour. DeGeest Steel Works was the first business she visited as part of her first trip to South Dakota.
Physical Therapists, Wade Fligge and Trisha Rieffenberger, who were former tenants are now proud commercial real estate owners. By utilizing the dual loan structure of a conventional loan through Reliabank in Watertown and an SBA 504 loan through FDDC, Wade and Trisha were able to lock in a stabilized debt repayment in their quest to convert from renting to owning their current location.
The SBA continues to be shutdown as part of the larger, partial Federal government shutdown due to a lapse in appropriations. Only SBA employees deemed “essential” report for work on limited capacities.
December’s funding brings wonderful news for the 504 loan program – this month’s rates dropped significantly marking the largest rate decline in the program since February 2016. The 20 and 25 year SBA 504 debenture rates each declined 33 basis points.
Amongst numerous nominees, IMED Mobility was chosen for the 504 Rural Loan Diamond Award. This national award was presented by the National Association of Development Companies (NADCO) recognizing a small business that has made an impact.