As your local U.S. Small Business Administration (SBA) Certified Development Company, Dakota BUSINESS Finance works with local banks to provide loans to small businesses to construct, purchase, renovate a building or install leasehold improvements, or to purchase a building or purchase long-term machinery and equipment. Typically, the banks will provide 50 percent of the financing; SBA/Dakota BUSINESS Finance 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.
SBA/Dakota BUSINESS Finance's portion of the project is a direct loan from 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.
Bank Loan (50%)
SBA Loan (40%)
Borrower Cash or Equity (10%)