Good news! Beginning October 1, 2017, a key component of what determines the SBA 504 effective rate was reduced!
SBA’s guidelines allow a borrower to act as their own contractor on a 504 project where construction and/or installation of machinery and equipment are involved, if the following three criteria are met:
First District Development Company’s Board of Directors is made up of eleven individuals from various walks of life. In addition to making decisions on small business loan applications, the FDDC Board is responsible for the day-to-day operations of the Certified Development Company. We’d like to introduce you to our newest Board member—Paul Moore.
Paul Moore, Business Banking Manager at Great Western Bank in Watertown, South Dakota, grew up near Estelline, South Dakota, where he attended high school.
For all SBA 504 loans approved after October 1, 2017, the Ongoing Borrower Guarantee Fee has decreased. This fee is added to the debenture rate each month and is included in the full term effective interest rate that is quoted for 504 loan rates.
BankStar Financial, Brookings, SD, and First District Development Company (FDDC) were able to combine a commercial bank loan and an SBA 504 loan to offer an attractive financing package to Michael and Tanya Smith. The Smiths purchased the building they were renting for their business, Ohm’s Appliance Center, which is located on South Main Avenue in Brookings.
We know as a small business lender how important it is to get the details straight from the onset of the project. Too many times lenders and/or small business owners see the big picture in their heads and details get overlooked or not communicated.
Have a small project, but it is too risky for your organization’s lending guidelines? Or have you met your lending limits with a certain customer? When you partner with FDDC on an SBA 504 loan you open the door for not only your client, but also yourself to consider lending for larger projects to one… Read more »
FDDC Experts take the lead from beginning to end on the SBA 504 loan to ensure it is approved, closed, funded and serviced for the life of the 10 or 20 year loan. Day in, day out – the SBA 504 loan is FDDC’s focus.
It’s as easy as 1 – 2 – 3…
A bank or other private lender typically finances 50% of the project cost and takes a first lien position on the assets financed.
At the South Dakota SBA Small Business Week celebration in May, Beth Hanna of Building Blocks Childcare and Learning Center, LLC, was honored as the 2017 South Dakota Small Business Person of the Year. Building Blocks Childcare & Learning Center, LLC, in Brandon, South Dakota, is owned and operated by Beth Hanna.