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.
The latest Covid Relief bill includes a number of changes to SBA programs. All provisions of the new law are subject to Congressional appropriation and full SBA implementation. Additional details will be sent out as the provisions are rolled out by SBA. This post gives a brief outline of the areas that are affected…
SBA 504 Temporary Fee Eliminations
CARES Act Section 1112 Tax Implications
CARES Act Section 1112 Additional Debt Relief
Extension of Paycheck Protection Program
SBA 504 Debt Refinance Loan Programs
SBA 504 Express Loan Program
As of today, the South Dakota Small Business COVID Interruption and Start Up programs have re-opened for applications. Governor Kristi Noem announced up to $345 million in additional grants for small businesses, non-profit organizations, and healthcare providers dealing with the effects of the COVID-19 pandemic. Applications for the additional grant funds will be accepted starting December 14 through December 20, 2020.
Brittany Rost joined the FDDC team in October, 2020, as an Assistant Loan Officer. Brittany received her Associate of Applied Science degree in Financial Services from Lake Area Tech in 2010.
First District has obtained an additional $1.56 million in Revolving Loan Fund (RLF) assistance through the Economic Development Administration (EDA). These new loan funds (along with First District’s current RLF funds of approximately $2 million) are being offered at attractive terms to businesses in an eleven county region as shown to the left (including Brookings, Clark, Codington, Deuel, Grant, Hamlin, Kingsbury, Lake, Miner, Moody, and Roberts).
For all SBA 504 loans approved after October 1, 2020, the Ongoing Borrower Guarantee Fee has changed. This fee is added to the debenture rate each month and is included in the full term effective interest rate that is quoted for 504 loan rates.
Farmers and Merchants Bank—Branch of First National Bank in Huron, SD, and First District Development Company (FDDC) via the SBA 504 loan program joined forces to offer an attractive financing package to a newly formed entity to do business as MA’s Carwash. This new venture is owned by brothers who are Huron natives—Matt Rathjen and Adam Rathjen.
As the economics and leadership of our country are on the brink of change, so is the season. Both changes, make us at First District realize just how thankful we are for the steadiness of your commitment to small businesses and to FDDC. We truly appreciate all the conversations and applications that result in utilizing FDDC’s SBA 504 or Revolving Loan Fund programs.