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.
B & G Heating & Air Conditioning, Inc., dba Burhenn & Gruenig, located in Brandon, South Dakota, is one of First District Development Company’s most recent clients to take advantage of a low, fixed interest rate with an SBA 504 loan.
Lenders grow your customer base. When partnering with First District Development Company on an SBA 504 loan, lenders can assist their customers with larger projects, expand their lending limits and grow their portfolio.
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.