SBA 504 Loan

One of the best

Small Business financing

An SBA 504 loan provides financing for fixed assets such as land, buildings, machinery, and equipment.


Down-payment can be as low as 10% with a maximum of 20%

fixed interest

Interest rate is fixed for 20 or 25 years (10 years for an equipment loan)

Long term Loan

Loans are extended for terms of 10, 20, and 25 years

unlimited Project size

SBA participation is limited to $5 million ($5.5 million if certain goals are met)

our service area

BHCED was established to contribute to the economic development of the Black Hills and beyond. We serve the state of South Dakota and parts of Wyoming and Nebraska.


If these criteria describe your business, you are likely eligible for a 504 loan. Contact us today to discuss if an SBA 504 loan is right for your business.


Must be a for-profit business.

net profit

Average net profit after taxes must be less than $5 million during the previous two years' tax returns.


All owners of 20% or more of your business and a real estate holding company (if formed) must be willing to guarantee the loan.


Loan must be used to finance acquisition of a building, construction or renovation of real estate, or purchase of equipment. If used to purchase a building, your business must occupy at least 51% of the space.


If loan will be used for ground-up construction, your business must occupy at least 60% of the building now and 80% long-term.

Loan Application Process

Meet with a BHCED representative to review the details of your project.

The BHCED representative will guide you through the application process, including which forms and documentation are required to be submitted with your application.

After your application is received, BHCED will review your application and present your loan request to the BHCED Board of Directors for approval.

After the BHCED Board of Directors’ approval, the loan is submitted to SBA’s central processing center for final approval.

Closing will be scheduled following the purchase of all assets or the completion of all project construction, which will include both the SBA 504 loan and the participating lender loan.

Funding occurs after the loan closing. Funds are wire transferred directly to the participating lender, reducing the interim loan amount to the agreed lender portion. The rate on the SBA 504 loan is established at the time of funding.

Talk to us

Have any questions? We are always open to talk about your business, new projects, creative opportunities and how we can help you.