504 Loan Service Area Map

An SBA 504 loan is a low down-payment, fixed interest rate, long-term loan to provide financing for fixed assets such as land, buildings, machinery, and equipment. It is one of the best financing options available to America’s small businesses. Black Hills Community Economic Development operates as a Certified Development Company (CDC), a non-profit corporation established to contribute to the economic development of the Black Hills of South Dakota and beyond. 

We work with lending partners to provide financing through the SBA 504 loan program featuring the following benefits to small businesses:

  • Down-payment can be as low as 10% with a maximum of 20%
  • Interest rate is fixed for 20 or 25 years (10 years for an equipment loan)
  • Project size is unlimited – SBA participation is limited to $5 million ($5.5 million if certain goals are met)


  • Are you a for-profit business?
  • Has your average net profit after taxes been less than $5 million during the previous two year’s tax returns?
  • Will this loan be used to finance the acquisition of a building, construction or renovation of real estate or the purchase of equipment? If the loan is used to purchase a building, will your business occupy at least 51% of the space?
  • If the loan will be used for ground-up construction, will your business occupy at least 60% of the building now and 80% long-term?
  • Are all owners of 20% or more of your business and a real estate holding company (if formed) willing to guarantee the loan?

Loan Structure

Financing is broken into three parts with 10%-20% provided by the borrower. A lending institution funds 50% of the project. The remaining 30%-40% is provided through a Certified Development Company (CDC), a local non-profit corporation which handles the SBA loan.

If you answered YES to all of these questions, you are likely eligible for a 504 loan. Contact us today to discuss if an SBA 504 loan is right for your business.