SBA 504

About 504

The SBA 504 Loan program is designed to help start-ups and expanding small businesses thrive and create jobs. The program provides long-term, competitively priced fixed-rate loans for major fixed assets to businesses which have a high probability of success in the marketplace.

Working in conjunction with qualified lenders, a typical SBA 504 loan structure is:

  • 50% qualified lender in 1st lien position
  • 40% SBA 504 in 2nd lien position
  • 10% equity injection
  • New business or special purpose building requires 15% equity injection
  • New business and special purpose building requires 20% equity injection

June Effective Rates


Benefits of the SBA 504 Loan Program

Benefitting both Borrowers and Lenders

Who Is Eligible?

Check out the region’s commercial properties on our layered mapping tool that offers intuitive search functions including property sizes and proximity to assets like airports and incentive zones.

For-profit corporations, limited liability companies, partnerships or proprietorships with net worth not exceeding $20 million and average net income not exceeding $6.5 million in the past two years.

Occupancy: For new construction, the company must occupy at least 60% of the building immediately and 80% of the space by year 10. Only 20% of the total space may be rented out permanently. For the purchase of an existing building, the company must permanently occupy 51% of the building.

How To Apply

Complete the SBA 504 Application and email to and We’ve compiled a checklist of information you’ll need to start the application process. Lake Agassiz Development Group will work directly with you and your banker through every step of the process. A majority of the following information will be provided by your banker.

Pre-Application SBA 504 Loan Program Checklist
SBA 504 Application
Borrower Release & Consent


Lake Agassiz Development Group has been originating SBA 504 loans for small businesses across North Dakota since 2004.  The SBA 504 program is designed to help start-up and expanding small businesses create jobs and thrive within their communities. The program provides long-term, competitively priced fixed-rate loans for major fixed assets to businesses that have a high probability of success in the marketplace.

We reference the effective rate in the notifications of funding provided after your loan funds. To request another copy, please send an email to

Yes. SBA 504 loans are funded differently than conventional bank loans and feature unique payoff terms
and requirements:


    Full prepayments are accepted only on the 3rd of each month.


    Lake Agassiz must receive written notice 15 days in advance of the payoff date.


    Prepayment premiums may apply.

If you wish to pay off your outstanding balance or discuss the SBA 504 loan prepayment process, contact
us by email at or by phone at 701.365.0409.

You can check your current loan balance at any time by referencing the Amortization Schedule we provided you after your loan funded. To request another copy of the Amortization Schedule, please send an email to
Submitting annual financial statements and tax returns is part of your commitment to Lake Agassiz for your SBA loan. We will send you a request for updated financials annually and ask you to submit them no later than three months after your fiscal year-end.