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, 2022, during a virtual celebration on December 8, 2022, at 10:00 AM CST. The public is invited to join at http://ow.ly/jrEG50LgOKL.
“In Fiscal Year 2022, approximately $117 million of SBA guaranteed lending was made available to South Dakota businesses through the 504, 7(a), and Microloan programs,” said Jaime Wood, SBA South Dakota District Director. “The role our community banks, credit unions, and micro lender partners play in small business startup and growth is critical as we navigate the economy forward in a post-pandemic environment. The expanded interest and participation in SBA loan programs statewide is providing urban and rural small businesses from all backgrounds more access to needed capital.”
SBA SD 2022 Leadership in Lending Award recipients:
Highmark Federal Credit Union (shown above), Black Hills Federal Credit Union, and First National Bank tied for the highest number of SBA 7(a) loans; each lender made 12 7(a) loans:
In other news, First Bank & Trust achieved the highest dollar volume of SBA 7(a) lending in South Dakota making nine loans for $5.5 million. These loans supported 51 jobs in the arts, entertainment, and recreation; construction; agriculture, forestry, fishing and hunting industries.
Dakota Business Finance, an SBA Certified Development Corporation, made 52 SBA 504 loans across the state, totaling $44 million. The loans supported 465 jobs in the educational services, manufacturing, and wholesale industries.
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. For more information visit: sba.gov/district/south-dakota.
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