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SBA 504 Loans in Sioux Falls, SD

Find lenders offering sba 504 loans in the Sioux Falls, including Brandon, Harrisburg, Tea, 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 Sioux Falls

6 lenders offering sba 504 loans in the Sioux Falls, SD area.

Sioux Falls Commercial Real Estate Market

Sioux Falls is South Dakota's largest city and primary commercial center, with a CRE market buoyed by the state's lack of corporate or personal income tax, which has attracted financial services operations from Citibank, Wells Fargo, and numerous credit card processing companies. The Empire Mall area and the Western Avenue corridor are the established retail and office nodes, while the Foundation Park and northeast industrial areas have seen growing demand for warehouse and distribution space. Downtown Sioux Falls has experienced a redevelopment wave along the Big Sioux River, with the Falls Park area drawing hotels, restaurants, and mixed-use projects. The city's consistent population growth of roughly 2% annually has sustained absorption across all property types.

Key Economic Drivers

  • Financial services cluster including Citibank, Wells Fargo, and MetaBank credit card operations attracted by South Dakota's favorable banking laws
  • Sanford Health and Avera Health, two competing major hospital systems, driving medical campus expansions
  • Smithfield Foods' John Morrell pork processing plant and regional agricultural supply chain
  • South Dakota's zero state income tax and minimal regulatory environment attracting corporate relocations

Market Insight

South Dakota's banking-friendly usury laws have made Sioux Falls home to the credit card operations of some of the nation's largest banks, creating a unique concentration of financial services office demand that provides a stable, recession-resistant tenant base.

SBA 504 Loans in Sioux Falls, 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 Sioux Falls metro area, borrowers can access 6 lenders offering SBA 504 financing, including Brandon, Harrisburg, Tea, 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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