Big Stone Therapya300

Feature 504: Big Stone Therapies, Watertown, SD

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.


Government Shutdown – FDDC Still Operates

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.


It’s SNOW Joke – 504 Rates Dropped!

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.

IMED 300

IMED Mobility Wins National Award

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.

35th Anniversary 300

FDDC’s 35th Celebration

Please mark your calendar for Tuesday, December 11, 2018. From 4pm-6pm this day, First District Development Company welcomes you to join us in celebrating our 35th year anniversary of originating loans for small businesses throughout South Dakota.

Madison Lawn Care300

Feature 504: Madison Lawn Care of Sioux Falls

Nick and Angie Bahr are thrilled to be operating their business, Madison Lawn Care of Sioux Falls, out of their newly constructed building located in Sioux Falls, South Dakota. Prior to owning this location, the business rented space in Sioux Falls. Great Western Bank in Madison assisted the Bahr’s with a conventional loan and First District Development Company partnered with an SBA 504 loan.

fees reduced 300

Something to be thankful for: as of October 1st, fees have been reduced!

There have been a couple of changes to the SBA 504 loan fees and the overall effect is a reduction to the fees.

–> First, SBA is reinstating the upfront guaranty fee charged on 504 loans, which is financed into the 504 loan
This fee had been eliminated years ago. It is going from zero back to its previous 50 basis points.


Spice Up Your Portfolio!

When mulling over your clients’ small business fixed asset project, remember the SBA 504 program can be used to finance fixed asset projects such as the following:

Rocket Man300

Structuring an SBA 504 Project

Don’t worry, it’s not rocket science – structuring an SBA 504 project is as easy as 1-2-3! 1. Financial Institution enjoys first lien position on 50% of value.


Approvals Needed for an SBA 504 Project

SBA reviews four areas before a 504 loan is fully approved. It is highly recommended the participating lender wait before disbursing their loan proceeds until FDDC and SBA have reviewed and approved all four of the items listed below.