FDDC Blog

Each year First District Development Company selects an individual lender who frequently works with FDDC as their “Lender of the Year”. For 2019, FDDC awarded Josh Hogue of Reliabank in Watertown as the 2019 Lender of the Year.

We finally followed the advice we give our customers…own your building, invest in your future! For over 35 years, First District Development Company, along with First District Association of Local Governments—a regional planning district, have rented space for their offices in Watertown, South Dakota. We are excited to announce we have moved into our building and are enjoying our new accommodations. We welcome you to stop in and visit us at our new location— 418 18th Ave NE in Watertown.

DeGeest Steel Works Co is a third-generation family-owned business founded in 1976 by Clint and Glenyce DeGeest. Today, Scott DeGeest, Derek and Alicia DeGeest, and Matt DeGeest work in the company along with 40 plus employees. The company recently finished another major expansion with the help of financing from First Premier Bank in Sioux Falls and First District Development Company (FDDC) via the SBA 504 loan.

Happy Holidays! On October 1st, SBA announced a decrease to one of the ongoing monthly servicing fees paid to SBA – the ongoing guarantee fee is reduced from .368% to .3205% of the outstanding balance of the loan. December is the first month rates are reported showing this reduction to the ongoing servicing fees.

Can fixed assets already purchased on a short-term note be included in an SBA 504 project? Any loan short term in nature (maturity of less than three years) is considered an interim note and can be included as part of the SBA 504 project costs.

The SBA 504 loan program DOES permit refinance projects where cash out equity is received.
Here’s how it works…

SBA 504 financing is designed for owner-occupied commercial real estate (and equipment). However, leasing a portion of the commercial space is allowed. To be eligible, the borrower must meet SBA’s requirements below:

Check out this month’s SBA 20 year and 25 year fixed interest rates. These are the lowest interest rates the SBA 504 loan program has offered in years!
Benefits of working with FDDC and the SBA 504 Loan Program:

With SBA 504 rates dipping to new lows, your clients may benefit by locking in a fixed rate on existing commercial debt. Remember SBA 504 Debt Refinance is a permanent part of the program and pertains whether you have new or existing clients with qualified debt at least two years old. It is also eligible to take cash out to cover business operating expenses. See the requirements below.

At the Small Business Week Celebration held in May, 2019, First District Development Company (FDDC) was awarded the 2018 District Leadership Award as 504 Dollar Leader by the South Dakota Small Business Administration for the amount of SBA financing secured on behalf of small businesses in 2018.