The CDC/504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.
504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.
To be eligible for a 504 loan, your business must:
Operate as a for-profit company in the United States or its possessions;
Have a tangible net worth of less than $15 million; and
Have an average net income of less than $5 million after federal income taxes for the two years preceding your application.
Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character, and the ability to repay the loan.
When small businesses need a loan for working capital, equipment, real estate, or other fixed-asset project costs, the MicroLOAN South Dakota program is a great fit. This low-interest loan is available to South Dakota companies and residents and can finance amounts as little as $1,000 and as large as $100,000.
South Dakota's REDI (Revolving Economic Development and Initiative) Fund is South Dakota's flagship financing tool. It is available to start-up firms, businesses that are expanding or relocating to South Dakota, as well as local economic development corporations. This low-interest loan can provide up to 45% of a project's total cost and requires a 10% minimum equity contribution. Projects can include: land purchases; site improvements; construction, acquisition or renovation of a building; or to the purchase and installation of machinery and equipment.
South Dakota WORKS is a flexible loan program that offers business and commercial loans to companies in need of working capital and interim construction financing. The WORKS program can finance up to $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include startup costs, working capital, payroll, and construction on new buildings.