Compare Funding Options

Below is a snapshot of the funding options offered by FDDC. If you have questions about which small business financing program is best for your South Dakota project please give us a call.

SBA REAL 504 Revolving Loan Funds
Uses Land, facility or equipment purchases as well as construction or renovation costs. Generally fixed assets, in some cases inventory or working capital.
Maximum Amount 40% of project costs for $25,000 – $5 million. Up to $5.5 million is available for small manufacturers and energy reduction projects. 30-40% of project costs, depending on availability of funds, loan maximum of $250,000.
Rates Fixed, typically below market rates, set monthly. 5-7%, subject to FDDC Board approval.
Term 10 or 20 year term options available. Generally 20 years or less with flexible amortization.
Down Payment Minimum 10% cash or land equity, in some cases up to 20%. Minimum 10% equity required.
Typical Package 10-20% borrower, 30-40% FDDC, 50% participating lender. 10% borrower, balance through FDDC and participating lender.
Collateral This may include a mortgage on the land and building being financed, liens on machinery or equipment, lease assignments, life insurance assignments, and personal guarantees. The first lien position is given to the participating lender. Varies on a case-by-case basis, FDDC generally shares the first position on collateral with the participating lender, unless other security is provided.
Economic Development Criteria 1 FTE / $65,000 SBA dollars loaned, 1 FTE / $100,000 SBA dollars loaned for small manufacturers. If no jobs are created, the project must meet objectives of public policy goals. These include rural development, woman-owned, minority-owned, veteran-owned, expansion of exports, energy efficiency, labor surplus area, or business district revitalization. There are no specific requirements for FTE creation but the FDDC Board is looking for job creation and economic growth in South Dakota.
Eligible Businesses New or expanding for-profit businesses. For profit or non-profit businesses.
Restrictions Applicant business must have a net worth of $15 million or less and an average net income of $5 million or less in the last two years. Applicant business must be located in one of the following South Dakota counties: Brookings, Clark, Codington, Deuel, Grant, Hamlin, Kingsbury, Lake, Miner, Moody, and Roberts.