FDDC has been a partner of small businesses for more than 35 years and its experienced staff works to customize a loan product for each of its customers. In addition to the SBA 504 program, First District Development Company offers financial assistance through our Revolving Loan Funds.
Mike Gruenwald recently and proudly changed his title from tenant to owner of commercial real estate. Aiding in the undertaking, were partner lenders—Reliabank in Watertown and First District Development Company via the SBA 504 loan program. Glacial Lakes Ag Supply—the business Mike owns—is now located in rural Clark County. Mike’s project involved the purchase of land, construction of a new building, and the purchase and installation of new equipment.
Focus…Clarity…Vision all come to mind for the new year of 2020. Small businesses are focused on affordable financing, preservation of working capital, and building equity. Partnering with FDDC provides clarity with SBA 504 financing as follows:
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:
