April 29, 2026

This piece is sponsored by Dakota Business Finance.

When Engineered Truss Systems Inc. set out to build a state-of-the-art manufacturing facility, an element of the financing for the project helped bring it to reality.

The $23.6 million project included a new building for the Brandon-based company — which was acquired by Lloyd Cos. in 2022 — as well as a lumberyard, rail line and supporting facilities.

“The 504 program allowed us to maximize the leverage and made the whole package appealing to our lenders, operations team and ownership,” said Jake Quasney, chief operating officer of Lloyd Cos.

Working with Dakota Business Finance, Engineered Truss Systems was able to utilize a 504 loan through the U.S. Small Business Administration in partnership with local lenders. These loans are available to for-profit businesses that want to purchase, construct or improve owner-occupied commercial real estate or acquire long-term equipment.

“Dakota Business Finance was an incredible partner on the project,” Quasney said.

“They made it easy to get through and synthesize our complex organizational structure into the application process that the SBA dictates.”

Manufacturers now have even more reasons to consider the program. Last fall, the SBA began offering a fee waiver and reduced interest rates for manufacturing projects.

“Essentially, the SBA is making an effort to increase its exposure with manufacturing programs,” said Erik Barnes, senior vice president and senior loan officer at Dakota Business Finance.

“Whether you’re a manufacturer pursuing a new project or considering refinancing existing debt, this becomes an increasingly attractive option.”

Many manufacturers find that the timing for the added incentive is fortunate as their five-year balloon approaches and means a rate reset.

“This is a great way for manufacturers to get their rate into the mid-5s and help cash flow,” Barnes said.

Here’s a look at current rates and a calculation of what the savings can mean over the life of the loan:

The overall SBA 504 loan program provides fixed-rate, long-term financing for major fixed assets such as land, buildings and equipment for all industries. It typically is structured as:

• Bank portion: 50 percent of the project cost
• SBA portion through Dakota Business Finance: Up to 40 percent
• Borrower equity: Typically 10 percent

Because the SBA-backed portion carries a long-term, fixed interest rate — often 20 to 25 years — it helps businesses reduce exposure to rising rates while preserving working capital.

“To qualify for the manufacturing special pricing, the business needs to operate within certain NAICS codes (31-33),” Barnes said. “This can be for new projects or to refinance existing debt. Additionally, an upfront guarantee fee is waived, and the interest rate is reduced by approximately 0.21 percent.”

Dakota Business Finance also can help businesses evaluate opportunities to refinance existing SBA 7(a) loans. In some cases, businesses may be able to refinance 7(a) debt into a 504 structure if it involves eligible fixed assets, allowing them to lock in a lower, fixed rate on that portion of their financing and improve overall cash flow.

The SBA 7(a) program typically is used for working capital, business acquisitions and more flexible financing needs, and it often carries variable interest rates. Refinancing into a 504 loan can separate real estate or equipment debt into a longer-term, fixed-rate structure, while leaving operating lines more flexible. The special rate for manufacturers expires at the end of September.

Now that the Engineered Truss Systems team is up and running in its new space, the project has achieved both the company’s goals and those of the broader SBA program: economic growth for small businesses and the workforce they support.

“The space is great, and they really love the new environment and tools,” Quasney said.

“We have ramped up production, added new products and are innovating our business in really exciting ways. They have really bought into what we are trying to do, and we are headed in the right direction.”

To learn more about how your business could benefit, contact Dakota Business Finance through Erik Barnes, Jason Forbes or Sophie Johnson or start here.