FDDC Blog

Needleworks Sewing Center has found a new home at 216 East Kemp in Watertown, South Dakota, with the assistance of First District’s Intermediary Relending Program Loan Funds (IRP).

At First District Development Company’s Annual Celebration held on November 30, 2017, Mike Kluck of Dacotah Bank in Watertown, was the recipient of the 2017 Lender of the Year award.

While exploring the need to expand his business, owner of Fiberglass Specialties in Watertown, South Dakota, Bob Snell, avoided a new construction project and solved his problem when the building next door came up for sale.

Lenders and CDCs will no longer have to review franchise documentation or undergo a pre-application franchise review by SBA. Effective January 1, 2018, SBA has a new SBA Franchise Directory of all franchise and other brands reviewed by SBA that are eligible for SBA financial assistance.

Good news! Beginning October 1, 2017, a key component of what determines the SBA 504 effective rate was reduced!

SBA’s guidelines allow a borrower to act as their own contractor on a 504 project where construction and/or installation of machinery and equipment are involved, if the following three criteria are met:

First District Development Company’s Board of Directors is made up of eleven individuals from various walks of life. In addition to making decisions on small business loan applications, the FDDC Board is responsible for the day-to-day operations of the Certified Development Company. We’d like to introduce you to our newest Board member—Paul Moore.

Paul Moore, Business Banking Manager at Great Western Bank in Watertown, South Dakota, grew up near Estelline, South Dakota, where he attended high school.

For all SBA 504 loans approved after October 1, 2017, the Ongoing Borrower Guarantee Fee has decreased. 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.

BankStar Financial, Brookings, SD, and First District Development Company (FDDC) were able to combine a commercial bank loan and an SBA 504 loan to offer an attractive financing package to Michael and Tanya Smith. The Smiths purchased the building they were renting for their business, Ohm’s Appliance Center, which is located on South Main Avenue in Brookings.

We know as a small business lender how important it is to get the details straight from the onset of the project. Too many times lenders and/or small business owners see the big picture in their heads and details get overlooked or not communicated.