Bruce Rieffenberger and Tony Rieffenberger, brothers, recently purchased and remodeled an existing building in Watertown to house their new business, HomeTown Building Center, which provides quality building materials for residential and commercial projects. Great Western Bank of Watertown and First District Development Company’s SBA 504 loan partnered loan funds to provide Bruce and Tony with an attractive financing package. Purchasing this building, which previously housed Northland Building Center, was a natural step for these two brothers, as combined they each have extensive work experience in the building material supply business. Bruce Rieffenberger, has been a warehouse manager for 15+ years. At HomeTown, Bruce is doing what he does best, managing the warehouse. He also is the outside sales contact and works with customers on their custom design plans, providing them estimates for their project. Tony Rieffenberger’s work experience includes 5+ years at a building material supply business and 10+ years working in various positions, including management, for a credit cardholder office. Tony works at HomeTown behind the front counter, where he and the rest of the team at HomeTown provide top notch customer service. He also is in charge of ordering materials and is involved with advertising. Both Bruce and Tony aspired to own a building material supply business and when the Northland Building Center building, located on Highway 20 in Watertown, came up for sale it appeared to them as the perfect opportunity to pursue their dream. The Northland Building Center was going out of business, which benefited HomeTown, as they did not enter the building supply market as an additional competitor, but by replacing an existing competitor.

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124 1st Avenue NW, P.O. Box 1207 Watertown, SD 57201

Phone: (605) 882-5115 FAX: (605) 882-5049 E-Mail: paula@1stdistrict.org amy@1stdistrict.org jen@1stdistrict.org katie@1stdistrict.org Website: www.1stdistrict.org/fddc

Paula Hulscher, Exec. Vice President

Amy Waite, Loan Officer Jen Palmquist, Loan Servicing Officer

Katie Carter, Assistant Loan Officer

FDDC is an Equal Opportunity Lender, Provider, and Employer.

Inside This Issue...

Featuring—HomeTown Building Center

End of Jobs Act 504 Fee Relief

Like Us on Facebook

504 Latest Interest Rates

Tyler Marthaler Awarded FDDC’s Lender of the Year

FDDC Board of Directors

Volume 13 / Winter 2011

HomeTown Building Center, Watertown, SD

FEATURE 504:

SBA 504 - The Money That Makes America Work - SBA 504

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HomeTown Building Center Continued End of Jobs Act

Fee Relief

We have been informed the funds available for fee relief from the Small Business Jobs Act are nearly exhausted and SBA is no longer accepting 504 loan applications requesting fee waivers. If you recall, the Jobs Act funds were covering two fees associated with the 504 loan: the 1.5% Certified D e v e l o p m e n t C o m p a n y origination fee and the one-time Bank Participation Fee of .5% on the permanent first mortgage loan. Recently, SBA set up the 504 Loan Queue as the Jobs Act funds were nearly depleted. There is even a low likelihood of the loans in the queue receiving fee waivers from Jobs Act funds.

Like Us on

First District Development Company (FDDC) is on Facebook! FDDC’s business page is another avenue for you to stay in touch. The latest news on our loan programs, current events, current rates, and developing changes will be posted on our Facebook page: w w w . f a c e b o o k . c o m /FirstDistrictDevelopmentCompany

We’d appreciate it if you’d go there now and “like our page”, and then share it with someone you know.

HomeTown Building Center’s team consists of 11 full-time employees. HomeTown was able to retain all but one employee from Northland Building Center. One of HomeTown Building Center’s core values is to provide superb customer service to every one of their clients. One way HomeTown is making this happen is by providing the client with a list of available contractors to work on their project, which then allows the client freedom to chose which contractor they would like to work with. This makes the client and the contractors happy, as they are both being treated fairly. Another key to HomeTown’s superb customer service is to give anyone that walks through their doors or dials their phone number one-on-one customer attention. HomeTown allows the clients and contractors to determine how much or how little assistance they want with their project. They are readily available to assist clients with making decisions on design, materials, colors, etc. Clients enjoy that HomeTown is a one stop shop where they are able to find all of the necessary building materials to complete their new construction or renovation project. Most materials are in stock and whatever is not will be ordered in. Accurate estimates and delivery of materials are another perk for HomeTown’s clients. HomeTown is easily accessible to clients and contractors located on Highway 20 in Watertown, South Dakota, next to Watertown Coop Elevator and is open for business Monday through Friday 7:30 a.m. to 5:30 p.m. and Saturday 7:30 a.m. to 4:00 p.m. Competitive pricing is key to any business. By utilizing the SBA 504 Loan program through First District Development Company, HomeTown was able to receive a low fixed-interest rate on a portion of their financing needs. This has kept their overhead as low as possible, which allows them to keep their prices as low as possible. FDDC wishes them years of success and congratulates Bruce and Tony on making their dream a reality!

HomeTown Building Center Team

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First District Development Company’s Annual Meeting was held on November 23, 2010, in Watertown. During the meeting, FDDC presented their Lender of the Year award to Tyler Marthaler with Dacotah Bank, Watertown. Marthaler was chosen because of his customer service, creativity, and number of projects completed with FDDC. Marthaler graduated from North Dakota State University with a Bachelors degree in Economics. He has worked for Dacotah Bank over the last 3 years in Aberdeen, Minot, and Watertown. When asked about his award, Marthaler commented, “It was a real honor to be recognized as the Lender of the Year by FDDC. FDDC has been a great working partner for Dacotah Bank. We look forward to more combined successes in the future.”

Tyler Marthaler Awarded FDDC’s Lender of the Year

Pictured (L to R): Paula Hulscher, FDDC; Tyler Marthaler, Dacotah Bank; and Kate Carter, FDDC

Continue to Meet Our Board of Directors

Tim Walter, originally from Huron, South Dakota, has resided in Watertown for the past six years holding the title of Vice President and Business Banker at Plains Commerce Bank. In his position he is responsible for growth and development of business financing in Watertown and the surrounding communities. Since graduating from Moorhead State University with a Bachelor of Science degree in Accounting, Tim has been employed in the financial services industry. Just prior to his position at Plains Commerce Bank, he was employed with Wells Fargo Bank as a Retail Store Manager for Sioux Falls and Watertown. In addition to serving on the FDDC Board of Directors, Tim also serves as the Vice President for the Watertown Lions Club. It is important for Tim to participate on FDDC’s Board, as he sees how essential FDDC’s low fixed-rate loan programs are to small businesses throughout the state of South Dakota. When Tim is not behind the desk, he enjoys hunting, fishing, and camping. He is married and has three daughters.

First District Development Company’s Board of Directors is made up of ten individuals whose backgrounds are from the fields of banking, elected office, economic development, or small business ownership. In order to better accommodate our customers, FDDC’s Board meets as needed. This means as soon as the FDDC team has an SBA 504 or a revolving loan fund application put together, a Board meeting is scheduled. During the FDDC Board meetings, the Board of Directors discuss creditworthiness of the applicant and decide, in the case of an SBA 504 loan, to forward the application to SBA for their review, or in the case of a revolving loan fund, for FDDC to fund the loan for the project. In addition to making decisions on small business loan applications, the FDDC Board is responsible for the day-to-day operations of the Certified Development Company. We will be presenting information on our Board members in the next several newsletters.

Tim Walter, Vice President & Business Banker at Plains

Commerce Bank, Watertown, SD

20-Year Debentures Jan 2010 5.79 Feb 2010 5.55 Mar 2010 5.61 Apr 2010 5.77 May 2010 5.52 Jun 2010 5.29 Jul 2010 5.21 Aug 2010 4.93 Sep 2010 4.62 Oct 2010 4.52 Nov 2010 4.66 Dec 2010 5.57 Jan 2011 5.74

10-Year Debentures Jan 2010 4.91 Mar 2010 4.60 May 2010 4.61 Jul 2010 4.17 Sep 2010 3.69 Nov 2010 3.53 Jan 2011 4.71

For January 2011, a total of $263,092,000 twenty-year debentures (or 476 loans) and $24,427,000 (or 43 loans) were funded through the sale of certificates guaranteed by SBA. Rates shown are full term effective rates, which include all monthly service fees. 10-Year Debentures are sold every other month and generally the proceeds are used for equipment purchases. 20-Year Debentures are sold monthly and the proceeds are used for real estate acquisition and/or construction.

First District Development Company Page 4

504 Funding Summary January 2010 - January 2011

Be FIRST to get it FIXED!

124 1st Avenue NW, P.O. Box 1207 Watertown, SD 57201