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 »
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 »
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 »
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.