How Much Do I Need to Occupy?

SBA 504 is used to directly assist small businesses, which is the reason for SBA’s distinct occupancy guidelines. 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: For New ConstructionBorrower or operating company needs… Read more »

Christmas Wish Granted… SBA Fees Reduced

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 0.4517% to 0.2475% of the outstanding balance of the loan. December is the first month rates are reported showing this reduction to the ongoing servicing fees. For… Read more »


For your continued business and support this year. Small business success, your financial institution’s success, and FDDC’s success are truly an intertwining of lending instruments working in symphony so the entire network thrives. This past year we have all leaned on each other – and South Dakota’s economic network dove in headfirst to assist business… Read more »

Changes to… SBA 504 Debt REFINANCE Without Expansion

As of July 30, 2021,SBA implemented program changes that significantly affect the eligibility and requirements for the SBA 504 Debt Refinance program. These are permanent changes to the 504 program that make it less restrictive. Eligibility Requirements Recapped Original debt incurred not less than 6 months prior to SBA application 85% or more of the… Read more »

FDDC Celebrates with Open House

First District Development Company held a ribbon cutting and open house to celebrate their new building. Even though the move to the new location was almost two years ago, it was a great day to invite in our lending partners, customers, and the public to take a tour and enjoy refreshments. Thank you to all… Read more »

Feature 504: Nimble Wash, De Smet, SD

Nimble Wash in De Smet, SD, recently opened its doors with the help of an attractive financing package offered by the partnership of Bryant State Bank and FDDC via the SBA 504 loan program. Clinton and Brenda Efraimson, owners of Nimble Wash, were thrilled to utilize the SBA 504 loan program—locking in on a low,… Read more »

SBA 504 Project Approvals

SBA reviews four areas before a 504 loan is considered completely approved. It is highly recommended the participating lender wait before disbursing their loan proceeds until FDDC and SBA have reviewed and approved all four items listed below. Membership / Franchise Agreement ApprovalIf the SBA 504 loan applicant has signed a franchise, license, cooperative membership… Read more »

Howdy Partner!

Whether new construction, purchase, or refinance, First District Development Company is here to assist you with your commercial projects. FDDC experts will take the reins from beginning to end on the SBA 504 loan – making it a cinch. As our lending partner you can enjoy: Sharing the risk – with a first lien position… Read more »

504 Project Examples with 504 Refinance Changes

Examples of 504 Refinance projects below incorporate the new rules recently published and effective immediately. A reminder of the changes that were released follow the examples. Contact FDDC for assistance with structuring your specific 504 Refinance project.
504 Debt Refinance with Expansion

Senior Lien Refinancing

(One-Time Refinance of Lender Loan in a 504 Project) First District Development Company (FDDC) has been authorized by the U.S. Small Business Administration (SBA) to approve refinancing of the Third Party Lender (TPL) Loan on an existing SBA 504 project in an amount that, when combined with the outstanding balance on the subordinate 504 loan,… Read more »