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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:

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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.


Hungry for Knowledge? Attend FDDC’s Lunch & Learn!

Everything you need is on the menu at First District Development Company’s Lunch & Learn training: Refresh your SBA 504 loan knowledge and discover refinance options within the program. SBA Experts coming to your area! Check out the dates and locations…


FDDC Awarded 2017 Rural Lender Award

At the Small Business Week Celebration held in May, 2018, First District Development Company (FDDC) was awarded the 2017 Rural Lender Award by the South Dakota Small Business Administration due to the percent of SBA loans made in rural areas in South Dakota. FDDC was also recognized with the 2017 Leadership Circle Award for the amount of SBA financing secured on behalf of small businesses in 2017. At the same time, Paula Hulscher, Executive Vice President of FDDC, accepted the award as the 2018 Financial Services Advocate of the Year.


Feature 504: Mad Mary’s Steakhouse, Flandreau, SD

Mad Mary’s Steakhouse is located in Flandreau, South Dakota, and overlooks the Big Sioux River. Christina and Daniel Schmidt purchased Mad Mary’s in February, 2018, with the assistance of the SBA 504 program through First District Development Company (FDDC) and a commercial loan financed through Dacotah Bank in Brookings.


SBA 504 – 25 Year Debenture Debuts

Announced in April, today was the first sale of 25 year debentures (bonds) to fund SBA 504 projects. With the addition of the twenty-five year offering, the SBA 504 program has expanded…with terms from ten to twenty-five, options for refinance, all at or below market with fixed rates.

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We’re Looking for Relationships…

Could FDDC be your lending partner?

FDDC partners with lenders by utilizing the SBA 504 loan program for fixed asset projects. We can work with you to benefit your small business client on their new or expansion project.


SBA 504 Loan Benefits

There are a lot of reasons for small business owners to choose the SBA 504 Loan Program. Below you will find FDDC’s top five benefits of this type of commercial real estate financing…