FDDC Blog

Are you working through crisis mode with your clients, who need to relieve the stress of continued expenses with irregular revenue? Consider FDDC’s small business refinance possibilities through the SBA 504 program while fixed rates are low. Two options offered for refinancing under the SBA 504 program include: (1) Refinance existing debt along with an expansion of the project property or (2) Refinance only existing debt with no expansion costs (this option allows for some cash out for eligible operating expenses).

Here are more details for each type of 504 refinance…

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 in community, school, extra-curricular, volunteer, and special interest activities.

Congratulations to these award winners who are being recognized for their hard work and determination! FDDC wishes them continued success in their future careers.

Prior to the novel coronavirus (COVID-19) outbreak, small businesses were increasing in number and net job creation. Today, South Dakota small businesses are facing an unprecedented economic disruption and historic challenges due to the pandemic crisis. Cities have implemented mandatory closures of public spaces to ensure social distancing to prevent the spread of the virus, so those difficulties have only increased. With economic conditions changing rapidly, so are business resources and loan programs. In trying to keep up with the changing economic environment, First District Development Company (FDDC) has provided numerous emails and updates to lenders and clients. A collection of programs and resources are assembled on FDDC’s website on the events page: http://fddc.1stdistrict.org/events.

Here is a summary of programs that may interest you…

Like First District Development Company, businesses, educators, students, and families are experiencing life in new ways. Businesses in the hospitality industry have seen sales drop off, while businesses that provide video conferencing capabilities are experiencing skyrocketing sales.
Most businesses have adapted through alternative staffing schedules, limited services, or utilizing a remote workforce.

With rates at historical lows, it is a good time to consider utilizing an SBA 504 loan. We’re still processing small business loans for expansion, purchase, or to refinance existing real estate loans.

You will – with the lowest fixed rates in the history of the SBA 504 program!

Both lenders and small business customers benefit from working with FDDC
and the SBA 504 Loan…

Purchase or construction of mini warehouses and self-storage units are an eligible use of SBA 504 loan funds. Even better, they are not considered a special purpose property by SBA. This means the small business applicant would be able to get their project underway with the minimum of 10% equity injection, if they are an existing business or have sufficient experience.

The table below outlines a comparison between financing options available to small business clients. While SBA financing traditionally involves fees, because of the long term, low fixed rate of the SBA 504 loan, small businesses can save over a period of time.

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.