SBA 504 Loan History
Bill Janklow, former Governor of South Dakota, saw enormous potential for both small businesses and primary lenders in South Dakota through the Small Business Administration (SBA) 504 program
. Recognizing the federal program was under-utilized in South Dakota, he worked with the private sector to help form the South Dakota Development Corporation (SDDC).
The SDDC took it from there and was certified under the Small Business Administration as a Certified Development Company on December 27, 1983. The GOED acts as the servicing agent for the SDDC and administers the loan packaging and servicing of the SBA 504 loans. A local law firm contracts with SDDC to provide the closing services associated with these loans.
The SDDC is one of four statewide CDCs and there is one other multi-state CDC in the southeastern portion of the state that serves two counties. There has been an increase in the number of inquiries about the program this past year and it appears this is due to the state of the economy and some of the lowest rates in the history of the program.
The program currently has $19.8 million in outstanding loans.