LCD Group has processed more than $4.2 million in SBA 504 loans so far this year

When he looks back on the last four months, Derrick Becker says: “It’s been kind of a blur.”

As Lewis & Clark Development Group’s loan officer, Becker has found himself in demand processing SBA 504 loans. LCD Group has funded ten projects so far this year. Nine of those projects have been funded in the last four months alone with more in the pipeline. 

LCD Group has processed SBA 504 loans in excess of $4.2 million for the following North Dakota businesses:

– Abra Auto Body & Glass – Bismarck
– Ellingson Plumbing & Heating – Dickinson
– Integrity Auto and Diesel Repair – Williston
– Legendary Meats – Center
– Midway Lanes – Mandan
– O. Theone Boutique – Tioga
– PAWZ Enrichment Center – Bismarck
– PRK Tools – Williston
– Pronghorn Well Service – Williston
– Visionary Eye Care – Dickinson

Historic Low Rates Fueling Demand — But That May Be Changing 

Becker says these small businesses have benefitted from low interest rates, which he says is the driving force behind demand. 

“I believe the low rates have been a key factor in the record success of the SBA 504 program over the last 12 to 18 months.”

But he notes that could be changing.  

“The twenty-year and twenty-five-year fixed rates rose above three percent in October for the first time since March and then went back down. I think it is best to assume rates will continue to rise,” says Becker.

“My advice to any small businesses looking to expand, renovate, and purchase long-term assets is now is the time to move. Start right away so you can lock in on low rates.”  

An Ideal Loan for Small Businesses

While this particular time may be right, the unique nature of the SBA 504 Loan program makes it really ideal for any time. 

The SBA 504 loan is arguably the most successful small business loan program of its kind, providing small businesses with fixed-rate financing for the purchase of long-term assets. Proceeds may be used for the purchase of land, buildings, and equipment as well as to finance eligible closing costs. 

The program works in conjunction with the Small Business Administration, a private lender, and a Certified Development Corporation (CDC). The borrower’s private lender provides a mortgage of up to 50 percent for a project cost.

Four Key Benefits for Small Businesses

Lewis & Clark Certified Development Company, which is part of Lewis & Clark Development Group, processes all SBA 504 loans. Over the years, SBA 504 clients have Clients have discovered the program offers them four key benefits…

Access to Large Loan Amount: SBA 504 loans can cover up to 90% of your project’s total costs, which is good news for small business owners because most lenders typically don’t lend small businesses large loans. The SBA may back 40 percent of the loan of the loan, and a lender will cover 50 percent. This often leaves the remaining 10 percent for the business, which can easily cover the remainder. For these reasons, the SBA 504 loan is the easiest and most effective way to finance capital-intensive business projects, such as expanding or upgrading facilities.

Fixed Interest Rates and Flexible Repayment Terms: The SBA 504 Loan’s fixed rates are favorable to most small business’ bottom lines since the borrower pays a fixed amount for the entire length of the loan period. This makes it very convenient to plan for monthly or annual payments. Another major advantage is SBA loans have longer repayment periods. 

SBA 504 Loans are More Affordable: When small businesses take into account the fixed interest rate, low down payments, and longer loan repayment periods, they quickly reach the conclusion that the SBA 504 loan is more affordable. As many of observed, it is almost impossible to find a bank loan with all the perks of an SBA 504 loan.

Assistance from a CDC: Finally, as all of LCD Group’s SBA 504 clients have found, you can’t put a price on assistance with paperwork. Becker, along with LCD Group’s Small Business Assistance Team, helps clients get all the applications in place, saving borrowers time and providing them with critical counsel.

“Borrowers and lenders realize they really can’t go wrong with the SBA 504 loan,” says Becker. “For this reason, I expect I’ll stay busy. I certainly hope I am busy as that means small businesses are growing and jobs are being created.”

For more information about the SBA 504 Loan, visit LCD Group’s website or contact Becker at (701) 667-7622 or at You can also contact LCD Group Senior Lending Director Ashley Hruby at (701) 667-7607 or email her at