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SBA 504 Loans in Rapid City, SD

Find lenders offering sba 504 loans in the Rapid City, including Box Elder, Sturgis, and surrounding areas. Compare rates, terms, and programs from 6 lenders.

Lenders
6
Typical Rate
Below market (CDC portion ~5-6%)
Down Payment
10%
Term
10-25 years
Closing Time
45-90 days

SBA 504 Lenders Serving Rapid City

6 lenders offering sba 504 loans in the Rapid City, SD area.

Rapid City Commercial Real Estate Market

Rapid City's CRE market is shaped by its role as the gateway to the Black Hills, Mount Rushmore, and Badlands tourism economy, which drives demand for hospitality, retail, and seasonal commercial properties. Ellsworth Air Force Base, located nearby in Box Elder, is a major economic anchor that supports off-base retail, housing, and services — and the planned B-21 Raider bomber program is expected to bring additional personnel and investment. The North Maple Avenue corridor and East North Street serve as the primary commercial and retail arteries, while the Rushmore Crossing development has added big-box and national retail tenants. Healthcare demand from Monument Health, the largest hospital system in western South Dakota, generates steady medical office leasing.

Key Economic Drivers

  • Black Hills and Mount Rushmore tourism economy attracting millions of annual visitors
  • Ellsworth Air Force Base and the incoming B-21 Raider bomber mission expanding military personnel
  • Monument Health regional hospital system and its campus expansion in the metro
  • Sturgis Motorcycle Rally generating peak-season hospitality and retail demand in the region

Market Insight

The B-21 Raider bomber program at Ellsworth Air Force Base is expected to bring over 2,000 additional military and civilian personnel to the Rapid City area, creating significant new demand for housing, retail, and commercial services in the Box Elder and I-90 corridors.

SBA 504 Loans in Rapid City, South Dakota

SBA 504 loans provide long-term, fixed-rate financing for major fixed assets like commercial real estate and heavy equipment. The loan is split between a bank (50%), a Certified Development Company (40%), and your down payment (10%), resulting in below-market rates on the CDC portion. In the Rapid City metro area, borrowers can access 6 lenders offering SBA 504 financing, including Box Elder, Sturgis, and surrounding areas. Loan amounts typically range from $125K to $17M with rates from Below market (CDC portion ~5-6%).

Who Should Consider SBA 504 Loans?

  • Owner-occupied commercial real estate
  • Heavy equipment purchase
  • Business expansion
  • New construction

Key Requirements

  • For-profit business
  • Net worth under $15M
  • Average net income under $5M (after taxes) for prior 2 years
  • 51%+ owner occupancy
  • Create or retain jobs (1 per $90,000 CDC)

Advantages

  • Only 10% down payment
  • Below-market fixed rate on CDC portion
  • Long terms (20-25 years for RE)
  • No balloon payments

Considerations

  • Must be owner-occupied (51%+ for existing, 60%+ for new construction)
  • Cannot be used for working capital
  • Longer closing timeline
  • Two closings (bank + CDC)

SBA 504 Loans in Other South Dakota Cities

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