Corridor awarded grants by Dakota BUSINESS Finance
7 Sep 2022
News Release, News, Awards
Iowa Lakes Corridor Development Corporation awarded grants by Dakota BUSINESS Finance
Dakota BUSINESS Finance awarded Iowa Lakes Corridor Development Corporation 1st place for the City of Milford and 2nd place for the City of Spirit Lake for the number of SBA 504 loans approved in Iowa in 2021 with Dakota BUSINESS Finance by local lenders. Two SBA 504 loans were approved in Milford earning 1st place and $5,000. One SBA 504 loan was approved in the City of Spirit Lake earning 2nd place and $1,000.
Dakota BUSINESS Finance works with local lenders to provide loans to small businesses to construct, purchase, or renovate a building, install leasehold improvements or long-term machinery and equipment. Typically, the lender will provide 50 percent of the financing; SBA/Dakota BUSINESS Finance will provide 40 percent of the financing; and the small business owner will contribute the remaining 10 percent.
SBA/Dakota BUSINESS Finance's portion of the project is a direct loan from SBA, which sells the loans as bonds (or debentures) to investors on a monthly basis. Loan participants must be for-profit businesses and meet standards set by SBA.
Community lender awards were established in 2019 to give back to the communities in which Dakota BUSINESS Finance does loans. The prizes are awarded based on the number of loans approved in the Fiscal year per community. Only communities of less than 50,000 are eligible to participate. These grants are to put money back into these communities served, and to assist with local business development.
In 2021 Dakota BUSINESS Finance was the top Certified Development (CDC) in South Dakota for both dollar volume and loan volume, assisting 95 businesses and securing over $65 million in SBA 504 loan financing. Their service area includes South Dakota and Iowa and parts of Minnesota and the northeast corner of Nebraska.
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About the Iowa Lakes Corridor
The Iowa Lakes Corridor Development Corporation is the regional economic development agency for Buena Vista, Clay, Dickinson and Emmet counties. Its mission is to foster, encourage, aid, promote or otherwise assist in the economic growth and development of the region. For more information about the Iowa Lakes Corridor Development Corporation, call 712-264-3474 or visit www.lakescorridor.com