PARTNER WITH SEDC
Incorporated in 1979 by a group of Siouxland leaders in an attempt to help stimulate the tri-state region’s economy, organizers believed the SEDC could have a positive impact on the economy by assisting businesses in modernizing, diversifying, or expanding their operations, and by encouraging new business starts.
But their success starts with lending partners who believe in the power of small business. Want to work with us – fill out the form below.
CURRENT LOAN RATES
25-Year Fixed (Refinanced)
20-Year Fixed (Refinanced)
Upload Your Documents
Exhibit 10 – Schedule of Debt (Excel)
Exhibit 10 – Schedule of Debt (PDF)
Exhibit 11 – Previous Government Financing (Word)
Exhibit 11 – Previous Government Financing (PDF)
Exhibit 12 – Affiliates (Word)
Exhibit 12 – Affiliates (PDF)
Personal Financial Statement (PDF)
SBA Form 912 – Personal History (PDF)
Environmental Questionnaire (Word)
Environmental Questionnaire (PDF)
Assignment of Life Insurance (PDF)
Steps of the 504 Loan Process
There is an initial assessment conducted with the borrower and lender to discuss the project and the SBA loan parameters.The borrower shall complete and provide all documentation needed by SEDC.
SEDC Loan Committee Approval
The SEDC staff performs loan underwriting for the project and receives loan approval from the SEDC Loan Committee. This process takes approximately two weeks.
SBA Loan Approval
SEDC submits the loan application packet to the SBA Loan Processing Center in Sioux City, Iowa for final approval. Approval is usually received within one week.
SBA Written Commitment
The SBA issues a commitment entitled “Authorization for Debenture Guarantee.” This document outlines the terms and conditions which must be met in order to close the SBA loan. SEDC and the borrower review the Authorization for Debenture Guarantee and sign the document.
A copy of the Authorization for Debenture Guarantee is given to the lender. The lender provides the interim financing for the project. The lender must advance funds for both the first and second liens until such time that the SBA loan can be closed and funded.
SEDC will close the SBA loan once all construction and/or renovations have been completed. For projects that involve the purchase of an existing building, the closing will take place as soon as all of the Authorization for Debenture Guarantee requirements have been met. The borrower is responsible for all closing costs incurred by SEDC. This includes but is not limited to: title insurance premiums, recording fees, legal fees, flood determination fees, and courier services.
There is approximately a 45-60 day waiting period from the time the SBA loan closes until the SBA loan funds. The borrower is responsible to pay interim interest to the lender until the funding occurs. On the funding date, the lender receives a wire transfer, to reduce the interim note to the approved permanent note balance. Any excess funds must be paid by the borrower and not added into the 1st lien note. The interest rate for the SBA loan is determined when the SBA loan funds.
SBA Loan Payments
Beginning on the 1st of the month following the funding date, the borrower will begin to make payments on the SBA loan. The borrower will have a separate payment to the lender and to the SBA. The SBA payment is collected by Colson Services, the SBA servicing agent.
SBA Loan Servicing
SEDC requires that borrowers submit annual financial statements prepared by an independent accountant within 90 days of the business’s fiscal year end. SEDC also requires that all insurance remains current and the real estate taxes remain paid on all properties