Black Hills Community Economic Development made headlines this winter when the U.S. Small Business Administration announced it to be South Dakota’s leader in originating 504 Loans.
Small Business Administration 504 Loans provide long-term, fixed-rate, low-interest subordinate mortgage financing for businesses. The financing can be used for acquisition or renovation of capital assets, including land, buildings, and equipment.
BHCED led the state in originating these loans in fiscal year 2007, a twelve month period that ended last September 30. During that period, 20 loans totaling $6.5 million were issued through BHCED’s initiative. It was a busy year for South Dakota overall in terms of these loans. The SBA South Dakota District office reported a record 64 loans, totaling more than $23.3 million.
BHCED’s record years prior to 2007 were 2003 and 2004. In both of those years it originated 13 loans.
“We’re still busy,” said Fran White, who coordinates BHCED’s SBA Loan activity. “We’re still seeing a lot of variety in businesses that are applying, and we’re seeing a lot of applications from outlying communities in addition to Rapid City. For example, we’re working with an Edgemont business for the first time.”
White credits lending institutions, who must be part of an SBA 504 Loan package, for promoting the program. “Lenders have seen it’s not really a burden to do a 504 Loan,” she said. “It’s a good deal both for businesses seeking financing and local lenders.”
Last year was a good one for BHCED’s loan program in another way, too. The organization was approved by the SBA as a Certified Development Company two decades ago, but in 2007 it was approved as higher tier CDC nationally. It entered the Accredited Lender’s Program, allowing it to expedite loan approval and closing.
More information about any aspect of BHCED’s SBA 504 Loan program is available from Fran White, 605-394-1706.
