Effective October 1, 2026, major SBA policy updates will make long-term real estate financing significantly more affordable for key North Dakota industries.
Targeted Relief for Priority Sectors
Under SBA Information Notice 5000-881796, the agency is completely waiving the 0.50% upfront guaranty fee and ongoing annual service fee for qualifying 504 loans approved through Fiscal Year 2027. These total fee waivers apply directly to:
Manufacturers: Operating under NAICS codes 31, 32, and 33.
Food Supply Chain Businesses: Including agricultural support, food wholesaling, cold storage, and specialized freight.
Rural Businesses: Small businesses located within designated rural communities across the state.
The waivers cover fixed-asset expansion, facility construction, and 504 debt refinancing. For all other standard 504 loans, the SBA is also lowering the annual service fee to 0.203%.
Opening the Door to Growth
This policy shift eliminates major upfront financial hurdles for local entrepreneurs expanding their footprint.
“By removing upfront costs, the SBA reduces effective interest rates and simplifies investing in permanent facilities,” says Derrick Becker, LCD Group Commercial Lending Director.
“If upfront loan costs have held you back from expanding, this new fee schedule creates a significant opportunity. Let’s review your project, determine your qualifications, and help you retain more capital.”
Explore More: SBA 504 Loan and all of LCD Group’s suite of business lending programs. Contact Derrick Becker at (701) 667-7622 or at derrick@lcdgroup.org.
