Ally Dakota Development is proud to offer a variety of loan options to help you meet your specific financial needs. Whether you’re looking to start a business, expand, purchase new equipment, or refinance, our loan solutions will help you succeed.
| | SBA 504 | Revolving Loan Funds |
|---|---|---|
| Uses | Purchase of land, new building construction costs, purchase of equipment, and/or construction renovation costs. | Generally fixed assets, in some cases inventory or working capital. |
| Maximum Amount | 40% of project cost - ranging from a minimum loan amount of $25,000 and a maximum loan amount of $5 million. | 30-40% of project costs, depending on availability of funds, loan maximum of $250,000. |
| Rates | Fixed, typically below market rates, set monthly. | Subject to Ally Dakota Board approval. |
| Term | 10-, 20-, or 25-year term options available. | Generally 20 years or less with flexible amortization. |
| Down Payment | Minimum 10% cash or land equity injection, in some cases up to 20%. | Minimum 10% equity injection required. |
| Typical Package | 10-20% borrower, 30-40% Ally Dakota, 50% participating lender. | 10% borrower, balance through Ally Dakota and participating lender. |
| Collateral | This may include a mortgage on the land and building being financed, liens on machinery or equipment, lease assignments, life insurance assignments, and personal guarantees. The first lien position is given to the participating lender. | Varies on a case-by-case basis. |
| Economic Development Criteria | 1 FTE / $90,000 SBA dollars loaned, 1 FTE / $140,000 SBA dollars loaned for small manufacturers. If no jobs are created or retained, the project must meet other program objectives. | There are no specific requirements for FTE creation but the Ally Dakota Board is looking for job creation and economic growth in South Dakota. |
| Eligible Businesses | New or expanding for-profit businesses. | For-profit or non-profit businesses. |
| Restrictions | Applicant business must not have a tangible net worth of more than $20 million and average net income after the last two years must be less than $6.5 million. | N/A |
Take the first step towards achieving your business ambitions and apply today!
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