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The challenge for anyone wanting to open or expand a small business comes down to money, but a new Sioux Falls non-profit lending organization will make it easier for people to build a business and create jobs.
The Dakota Business Finance Certified Development Company will work with local banks to provide loans for small businesses that need to construct, purchase or renovate a building or purchase long-term machinery and equipment. Typically, the banks will provide 50 percent of the financing; Dakota Business Finance will provide 40 percent of the money; and the small business owner contributes the remaining 10 percent.
Dakota Business Finance's portion of the loan comes from the Small Business Administration (SBA), which sells notes on a national basis monthly to provide the financing. Loan participants must be for-profit businesses and meet standards set by the SBA. The benefits to the business owner are:
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