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.
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.
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.
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:
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.
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.
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…
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.
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.
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.