With spring in the air, thoughts of construction are on many business owners’ minds. SBA’s guidelines allow a borrower to act as their own contractor on all or part of a 504 project where construction and/or installation of machinery and equipment are involved, if the following three criteria are met: The borrower/contractor is experienced in… Read more »
Some small business clients purchase assets, such as land, prior to beginning construction or before permanent financing can be completed. Any loan that is short-term in nature (maturity of less than 3 years) is considered an interim note and can be included as part of the SBA 504 project costs.
SBA recently authorized First District Development Company to allow refinancing of the Third Party Lender Loan on an existing SBA 504 project in an amount that, when combined with the outstanding balance on the subordinate 504 loan, is not more than 90 percent of the total loan to value.
Certain SBA 504 fees are temporarily eliminated as authorized by the Economic Aid Act enacted late December, 2020. Any 504 loan approved from December 27, 2020, through September 30, 2021, will receive fee elimination on two fees as follows:
Authorized through the Economic Aid Act
An additional stimulus package, the Economic Aid Act, was passed December 27, 2020. Congress appropriated $3.5 billion to carry out additional payment subsidies on SBA loans. Each SBA loan is eligible to receive payment subsidy based on SBA loan approval date and type of industry.
Here are the new general rules that apply to Payment Forgiveness authorized for both SBA 504 and 7a loans:
Samantha Jondahl joined the FDDC team in November, 2020, as an Assistant Loan Officer.
Sam received her Associate of Applied Science degree in Financial Services – Business Accounting from Lake Area Tech. Prior to working at FDDC, Sam worked at a local accounting firm for five years.
Christina Konechne fulfilled her lifelong dream of owning a long-term care facility by purchasing Whispering Winds Senior Living Center in Howard, SD. First PREMIER Bank in Madison, SD, and First District Development Company via the SBA 504 loan program, paired up to provide Christina and Marty Konechne with the necessary financing.
The latest Covid Relief bill includes a number of changes to SBA programs. All provisions of the new law are subject to Congressional appropriation and full SBA implementation. Additional details will be sent out as the provisions are rolled out by SBA. This post gives a brief outline of the areas that are affected…
SBA 504 Temporary Fee Eliminations
CARES Act Section 1112 Tax Implications
CARES Act Section 1112 Additional Debt Relief
Extension of Paycheck Protection Program
SBA 504 Debt Refinance Loan Programs
SBA 504 Express Loan Program
As of today, the South Dakota Small Business COVID Interruption and Start Up programs have re-opened for applications. Governor Kristi Noem announced up to $345 million in additional grants for small businesses, non-profit organizations, and healthcare providers dealing with the effects of the COVID-19 pandemic. Applications for the additional grant funds will be accepted starting December 14 through December 20, 2020.
Brittany Rost joined the FDDC team in October, 2020, as an Assistant Loan Officer. Brittany received her Associate of Applied Science degree in Financial Services from Lake Area Tech in 2010.