FDDC Blog

Timing and Teamwork

SBA’s current wait time for approval on 504 applications is approximately 20 business days so it is crucial to work together as a team with First District Development Company (FDDC), the small business owner, and the lender to ensure a smooth application. It’s always a great idea to have an initial meeting with your FDDC… Read more »


Reminder…SBA 504 Fee Waivers are in Effect Until September 30, 2021

In order to receive these fee eliminations, a new 504 loan needs to be approved prior to September 30, 2021. Since SBA is now at an approximate 20 business day turn around, it is not too early to get your 504 applications in to be processed. Approved applicants will receive fee elimination on two fees… Read more »


Color Outside the Lines

SBA 504 financing is so often associated with hotels, restaurants, and convenience stores/gas stations that it is easy to overlook other types of businesses that are able to utilize the long-term, fixed rate program. Find success outside the norm! SBA 504 can be used for many unique fixed asset projects, related to… Agri-Business (dairy facilities,… Read more »


First District Development Company Awards Julie Puetz 2020 Lender of the Year

Julie Puetz, BankStar Financial’s Chief Credit Officer, was recently recognized as the First District Development Company (FDDC) 2020 Lender of the Year.  Julie was chosen for her use of creative financing and her passion for helping business owners start or grow their business.  She has over 35 years of commercial lending experience and has partnered… Read more »


SBA 504 Fee Eliminations

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: · The 1.50% CDC Processing Fee charged to the Borrower as included in the debenture pricing. · The… Read more »


FDDC Awards Scholarships

As a partner to South Dakota’s small businesses, First District Development Company invests in economic development activities other than lending. This year FDDC offered five – $1,000 scholarships to students pursuing a post-secondary degree in a business/finance related field. Student applicants were evaluated based on their academic achievements, character references, a written essay, and involvement… Read more »


Feature 504: Valley Ag Supply, Inc., Gayville & Spink, SD

Valley Ag Supply, Inc. was founded in 1999 by the late, Greg Pirak, and Tara Pirak, husband and wife. Located in rural Gayville, South Dakota, Valley Ag Supply, Inc., is a four-time borrower of the SBA 504 loan program. Each 504 project has included a combined financing package with CorTrust Bank in Yankton, South Dakota,… Read more »


Do-It-Yourself Construction Under SBA 504

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 »


Interim Financing 504 Eligibility

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.


One-Time Refinance of Lender Loans with 504 Project

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.