SBA 504 Program
A primary challenge for anyone wanting to open or expand a small business is finding low cost and long-term financing. As an SBA Certified Development Company, Dakota BUSINESS Finance works with local banks to provide loans to small businesses that need to construct, purchase or renovate a building or purchase long-term machinery and equipment. Typically, the banks will provide 50 percent of the financing; Dakota BUSINESS Finance (SBA) will provide 40 percent of the financing; and the small business owner will contribute the remaining 10 percent in the form of an equity or cash injection.
Dakota BUSINESS Finance's portion of the project is a direct loan from the Small Business Administration (SBA), which sells the loans as bonds (or debentures) to investors on a monthly basis. Loan participants must be for-profit businesses and meet standards set by SBA. The benefits to the business owner are: