SBA 504 is a business economic development loan program. Economic development doesn’t always mean job creation.
When using the SBA 504 program, a borrower is required to inject a minimum of 10% equity into the project.
Q. What if my small business expansion includes creating work efficiencies to limit the number of jobs created? Can I still qualify for SBA 504?
A. Most small business projects involve the creation of jobs; however, some involve just a change of ownership, a business that is not labor intensive, or improved technology that eliminates the need for manpower. These situations are still eligible for SBA 504 if they meet one of SBA’s Public Policy goals of Rural Development, Woman/Minority/Veteran Ownership, Expansion of Exports, or Area Development.
FDDC prides themselves on being very organized with continual communication with the lender and the borrower throughout the process.
Facing challenges and problem solving is what Bob Lundin practices on a daily basis working at his company, IMED Mobility in Tea, South Dakota. In February, 2015, the IMED building, where they’ve been for the past 12 years, suffered a serious fire and had severe smoke and water damage due to an electrical surge in an unused office. Bob immediately took the steps necessary to temporarily relocate his business to rented space across the street and started working with his lender, Jeremy Keizer at Reliabank in Tea. Through a partnership of SBA 504 loan funds made available through First District Development Company and a conventional loan from Reliabank, IMED Mobility was able to move into its new and impressive building in Tea during the fall of 2016. In fact, the new building sits on the same ground where IMED’s first building once stood.
Construction season is upon us! Now is the time to get your clients’ permanent financing in order.
FDDC’s small business financing will help you save some “green” and lock in a rate for your business clients.
Small business financing is what we do. First District Development Company is dedicated to helping South Dakota small businesses succeed. Committed to job growth in our state, we offer financing available at terms that benefit borrowers and lenders.
First District Development Company and the SBA 504 Loan program assisted Terry and Amy Reilly with an attractive financing package to complete their purchase of this existing building.
First District Development Company has awarded Jeremy Keizer of Reliabank, Tea, SD, as its 2016 Lender of the Year.