The U.S. Small Business Administration South Dakota District Office is honoring four lenders for their commitment to small businesses in the fiscal year ending September 30, 2021, at a virtual celebration on February 17, 2022, at 10:00 AM CST. The public is invited to join at http://ow.ly/36x050HW1VV.
“SBA’s lender relationships are among the most important tools we have to help small businesses start, grow, and succeed,” said Jaime Wood, SBA South Dakota District Director. “SBA guarantees the loans, but ultimately it is the banks, the credit unions, and the community-based lenders, who put capital in the hands of business owners. Those dollars power small businesses to provide more consumer products and services, jobs, expanded facilities, and to create better communities.”
SBA SD 2021 Leadership in Lending Awards recipients:
- Black Hills Federal Credit Union and The First National Bank in Sioux Falls tied for the highest number of SBA 7(a) loans. Each lender made 20 7(a) loans:
- Black Hills FCU made 20 7(a) loans for $7.5 million. These loans supported 131 jobs across a variety of industries including construction, manufacturing, health care, and retail.
- First National Bank in Sioux Falls made 20 7(a) loans for $3 million. These loans were in industries as diverse as retail, information technology, wholesale, and transportation, and supported 121 jobs.
- Byline Bank, based in Illinois, achieved the highest dollar volume of SBA 7(a) lending in South Dakota making five loans for $8.9 million. These loans supported 47 jobs and included a $3 million 7(a) loan made in a Rural HUBZone and a $2.5 million loan, supporting $2 million in exports to Canada, Mexico, and Saudi Arabia.
- Dakota Business Finance, an SBA Certified Development Corporation, made 95 SBA 504 loans across 20 of the state’s 66 counties for a total of $65 million. The loans supported 880 jobs and included seven loans to veteran-owned businesses, 16 loans to rural businesses, and 29 loans to HUBZone businesses.
“Fiscal Year 2021 was an active year for SBA guaranteed lending in the state,” said Wood. “Approximately $182 million was made available to South Dakota businesses through the 504, 7(a), and Microloan programs.” Wood noted high utilization with seven Certified Development Companies, forty-three 7(a) lenders, and one microlender participating in the SBA guaranteed lending programs.
More information on SBA guaranteed lending:
The 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies, SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.
The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses and offers guarantees on loans to small businesses of up to $5 million on reasonable terms and conditions. SBA 7(a) loans are commonly used for acquiring land, purchasing equipment, or working capital.
The microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers. GROW South Dakota is SBA’s Microloan intermediary in South Dakota.
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