SD Development

The South Dakota Development Corporation (SDDC) was founded in 1983 with a simple mission: to help small businesses and industries in South Dakota flourish. Our organization was born out of a recognition that the Small Business Administration's (SBA) 504 loan program was underutilized in our state, and we aimed to change that. With the support of former Governor Bill Janklow, we became certified as a Certified Development Company (CDC) by the SBA and have been proudly serving our community ever since.

Our Services

At SDDC, we specialize in the SBA 504 loan program, which provides low-interest, fixed-rate small business loans to eligible borrowers. Our loans offer flexible repayment terms of 10, 20, or 25 years, with loan amounts ranging from $100,000 to $5 million. We understand that every business is unique, which is why we offer a range of loan options to fit your specific needs.

The SBA 504 Loan Structure

Our SBA 504 loans typically follow a 50-40-10 structure:

• 50% is financed by a regulated lender, receiving a first mortgage position on all project collateral.
• 40% is provided by the South Dakota Development Corporation, with a debenture guarantee by the SBA and a subordinated collateral position.
• 10% is provided by the borrower as a cash equity injection, representing the minimum equity contribution. In some cases, we may require a larger contribution depending on the project and personal available resources.

Our Expertise

Our Board of Directors is comprised of dedicated individuals from across South Dakota, all committed to helping the state's small businesses thrive. As a certified CDC, we work closely with our borrowers to understand their unique needs and goals. We strive to provide exceptional customer service, ensuring that our clients receive the financing they need to achieve their business aspirations.

Why Choose the SDDC?

By partnering with the South Dakota Development Corporation, you can benefit from:

• Low interest rates and fixed rates
• Flexible repayment terms
• Loan amounts up to $5 million
• Takeout financing and refinancing options
• A dedicated team of experts committed to your success

Get Started Today

If you're interested in learning more about the SBA 504 loan program or applying for a loan, we invite you to explore our website and contact us today.