Current Rates

SBA 504 Loan

Grow With One of the Best Small Business Financing Options Available

As an approved lender, Ally Dakota Development offers Small Business Administration (SBA) loans with lower down payments and longer repayment terms than traditional loans. Whether you’re a startup or want to expand your operations, SBA 504 loans provide affordable financing to fuel your business growth.

Benefits of SBA 504 Loans

  • Low Down Payment.
    With down payments as low as 10%, SBA 504 loans make it easier for small businesses to access financing while conserving working capital.
  • Long Term Loans.
    Terms range from 10 to 25 years, giving you the flexibility to repay the loan at a pace that fits your business’s needs.
  • Low, Fixed Rates.
    Lock in a low, fixed interest rate that will help maximize cash flow and allow you to more accurately predict future capital needs.
  • Significant Funding Capacity.
    SBA loans can be approved for up to $5 million ($5.5 million if certain goals are met).

Financing that Fits Your Needs

SBA 504 loans can be used for a variety of purposes, including:

BUILDING

Get a 20- or 25-year fixed-rate commercial building loan.

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EQUIPMENT

Buy your equipment with a 10- or 20-year fixed-rate loan.

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REFINANCING

Refinance your commercial loan with an SBA 504 Loan and lock in your rate.
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Agribusiness

Grow or expand your agricultural business with long-term, fixed rate financing.

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Current Rates

10-Year Rate

December 2024

6.52%

20-Year Rate

December 2024

6.20%

25-Year Rate

December 2024

6.13%

Eligibility

  • Eligible Uses.
    SBA 504 loans can be used for land, facilities, equipment purchases, construction, or renovation costs.
  • Eligible Businesses.
    New or expanding for-profit South Dakota businesses with a tangible net worth of $20 million or less and have average net income after the last two years of $6.5 million or less.
  • Maximum Loan Amount.
    Up to 40% of a project can be financed for $25,000 - $5 million. Small manufacturers or energy reduction projects are eligible for $5.5 million.
  • Economic Development Criteria.
    One full-time job must be created or retained per $90,000 of SBA dollars loaned. For small manufacturers or projects meeting SBA's energy public policy goal, one full-time job must be created or retained per $140,000 of SBA dollars loaned. Projects may also be eligible if they meet an SBA public policy goal, which include: rural development, woman-owned business, minority-owned business, veteran-owned business, expansion of exports, energy efficiency, labor surplus area, business district revitalization, or opportunity zone.
  • Service Area.
    Business must be located in South Dakota, northeast Wyoming, or northwest Nebraska.

Terms

  • Loan Structure.
    10-20% cash or land equity injection from borrower, 30-40% financing from Ally Dakota, and the remaining 50% from a private lender.
  • Fees.
    Processing fees total approximately 3% of the 504 portion of the loan and are financed in the loan. Monthly servicing fees total approximately 1.1% of the loan balance and are included in the full-term effective interest rate.
  • Collateral.
    This may include a mortgage on the land and building being financed, liens on machinery and equipment, lease assignments, life insurance assignments and/or personal guarantees. The participating lender will receive the first lien position.

Apply for a 504 SBA Loan

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Apply for an SBA 504 loan.

Apply Now

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