Construction season is upon us! Now is the time to get your clients’ permanent financing in order. An SBA 504 loan is able to finance 30-40% of the total cost to construct a new building or remodel an existing building.
Congress recently passed the Small Business ACE Act which raises the appraisal threshold for 504 loans secured by commercial real estate to match the federal banking regulator appraisal threshold amount for commercial real estate transactions.
1. Contact FDDC – to discuss eligibility to receive SBA 504 financing and the best possible loan structure.
2. Submit an Application – the application form is available on our website: http://fddc.1stdistrict.org. A checklist of items that need to be attached are listed on the application.
This year FDDC offered five – $1,000 scholarships to students pursuing a post-secondary degree in a business/finance related field. Congratulations to these award winners who are being recognized for their hard work and determination! FDDC wishes them continued success in their future careers.
With an interest in serving their friends and neighbors, Kyle Waliezer and Jeff Halme decided to build a new convenience store and gas station, while capitalizing on the increased truck traffic in the Lake Norden area. The location carries a history of providing fuel and other services to U.S. Highway 81 traffic that dates back to 1936. Moving to the site when the highway was re-routed, the original station was built by Al and Emily Flakus and was called Alsville Service and Garage, Café and Modern Cabins. The Flakus family ran the business for 36 years and after other owners took over, the business eventually dissolved. With the historic name of “Alsville”, Waliezer and Halme opted to add “Crossing”, with the business now being known as Alsville Crossing.
SBA 504 financing through FDDC is a perfect choice for a wide variety of projects – no one size, one color, or one pattern fits all here! FDDC is able to spot deals that may have several quirks to them and work their way through the maze to get to the end result – a financed project.
The SBA 504 program is a business economic development loan program. SBA has defined a number of economic development criteria a small business applicant can meet in order to be eligible for 504 financing. One of these criteria, job creation and retention, has recently been changed by SBA… making it even easier for small businesses to be eligible for 504 financing.
The new law raises the SBA 504 appraisal threshold to match the federal banking regulator threshold, which is currently $500,000.
On December 11, 2018, First District Development Company (FDDC) hosted their Annual Celebration in conjunction with recognizing their 35th year anniversary of originating loans. Also, Jennifer Olson with MetaBank in Brookings, SD, was awarded with FDDC’s 2018 Lender of the Year Award.
Shelby Kraemer joined the FDDC team in December of 2018 as a Loan Officer.
Shelby received her Bachelor of Business Administration with a major in Finance from the University of South Dakota in Vermillion, South Dakota. Before coming to FDDC, she worked for the Federal Government, assisting small businesses, banks, and public entities with loans and grants.