Feature 504: Glacial Lakes Ag Supply, Clark, SD

Mike Gruenwald recently and proudly changed his title from tenant to owner of commercial real estate. Aiding in the undertaking, were partner lenders—Reliabank in Watertown and First District Development Company via the SBA 504 loan program. Glacial Lakes Ag Supply—the business Mike owns—is now located in rural Clark County. Mike’s project involved the purchase of land, construction of a new building, and the purchase and installation of new equipment.

Focus on the Future with 504

Focus…Clarity…Vision all come to mind for the new year of 2020. Small businesses are focused on affordable financing, preservation of working capital, and building equity. Partnering with FDDC provides clarity with SBA 504 financing as follows:

FDDC on the Move

We finally followed the advice we give our customers…own your building, invest in your future! For over 35 years, First District Development Company, along with First District Association of Local Governments—a regional planning district, have rented space for their offices in Watertown, South Dakota. We are excited to announce we have moved into our building and are enjoying our new accommodations. We welcome you to stop in and visit us at our new location— 418 18th Ave NE in Watertown.

Feature 504: DeGeest Steel Works Co, Tea, SD

DeGeest Steel Works Co is a third-generation family-owned business founded in 1976 by Clint and Glenyce DeGeest. Today, Scott DeGeest, Derek and Alicia DeGeest, and Matt DeGeest work in the company along with 40 plus employees. The company recently finished another major expansion with the help of financing from First Premier Bank in Sioux Falls and First District Development Company (FDDC) via the SBA 504 loan.

504 Ongoing Guarantee Fee Reduced

Happy Holidays! On October 1st, SBA announced a decrease to one of the ongoing monthly servicing fees paid to SBA – the ongoing guarantee fee is reduced from .368% to .3205% of the outstanding balance of the loan. December is the first month rates are reported showing this reduction to the ongoing servicing fees.

504 FAQ: Interim Financing

Can fixed assets already purchased on a short-term note be included in an SBA 504 project? Any loan short term in nature (maturity of less than three years) is considered an interim note and can be included as part of the SBA 504 project costs.

SBA 504 Occupancy Requirements

SBA 504 financing is designed for owner-occupied commercial real estate (and equipment). However, leasing a portion of the commercial space is allowed. To be eligible, the borrower must meet SBA’s requirements below:

How Low Can You Go?

Check out this month’s SBA 20 year and 25 year fixed interest rates. These are the lowest interest rates the SBA 504 loan program has offered in years!
Benefits of working with FDDC and the SBA 504 Loan Program: