Do-it-Yourself Construction with SBA 504

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:


Meet FDDC’s Newest Board Member

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.

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SBA 504 Fee Reduction

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.

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Feature 504: Ohm’s Appliance Center, Brookings, SD

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.


Don’t Get Caught in a Web

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.


Large or Small FDDC Can Do it All

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 »


Benefits of SBA 504 via FDDC

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.

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Typical SBA 504 Financing Structure

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.

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Feature 504: Burhenn & Gruenig, Brandon, SD

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.