Keller Kountry Korner located at the intersections of SD Hwy 20 and 25 by Wallace, South Dakota, recently obtained an SBA 504 loan on their project from First District Development Company (FDDC) in conjunction with financing from Dacotah Bank of Watertown. Neal and Debra Keller, owners and operators of the convenience store and gas station, were able to receive an attractive financing package for their newly constructed building, furniture, fixtures and equipment. By utilizing an SBA 504 loan, the Keller’s were able to take advantage of record-low SBA 504 fixed interest rates for 20 years, which in turn puts an ease on their cash flow by having low, manageable debt repayment requirements. Neal and Deb Keller opened the doors to their new venture, Keller Kountry Korner, in December 2010, after closing the doors to their previous business, Keller Hardware in Wallace for personal reasons. Neal has been employed or an owner of a Keller family-owned business for most of his life and Deb has also for just shy of 20 years. When the Keller’s made the decision to close their hardware store, they felt that there was a need in the Wallace area for a convenience store and gas station. Clearly, the Keller’s are no strangers to the hours and hard work needed to run a successful small business.

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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 katie@1stdistrict.org Website: www.1stdistrict.org/fddc

Paula Hulscher, Exec. Vice President

Amy Waite, Loan Officer Katie DeBoer, Assistant Loan Officer

FDDC is an Equal Opportunity Lender,

Provider, and Employer.

Inside This Issue...

Featuring—Keller Kountry Korner

FDDC Board of Directors

2011 Family-Owned Business of the Year

Loan Funds Available

504 Latest Interest Rates

Volume 13 / Summer 2011

FEATURE 504:

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

Keller Kountry Korner, Wallace, SD

First District Development Company Page 2

Keller Kountry Korner Continued

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 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. Val Neuberger began his banking career after college graduation and an offer of employment with Wells Fargo Bank. He was born and raised in Britton, SD, and while working with Wells Fargo lived in several South Dakota and Wisconsin communities. He is currently the Market Manager for Home Federal Bank in Watertown, where he has been employed for the last 9 years. His position includes managing the two Home Federal Banks in Watertown and being a member of the Home Federal Bank Leadership Team. Providing loans and other banking services to meet opportunities for expanding and new

businesses has always been of interest to Val. He has found that the Small Business Administration loans and guarantees fit the needs very well. During his career he has had memberships and positions with several community organizations, in addition to serving on the FDDC Board of Directors. Val enjoys his family, which includes four super grand kids, golfing, attending high school and college sporting events, good books and movies and generally, more things each day.

The Keller Kountry Korner team is made up of Neal and Deb Keller, two full-time, and two part-time employees. The store is open 7 days a week from 6 am to 10 pm to accommodate as many customers as possible. Besides offering gas and diesel products, Keller Kountry Korner offers its customers a full line of C-store items, including breakfast croissants, breakfast pizza and many different kinds of sandwiches and pizzas. Keller Kountry Korner also has lunch and dinner specials for its customers. The store also has on and off sale beer and grocery items, such as bread and milk. Keller Kountry Korner has a video lottery room and a lounge area with a couch, tables and a flat screen T.V. for their customers.

First District Development Company was delighted to assist Dacotah Bank and the Keller’s with a 20 year SBA 504 loan on their project. FDDC wishes Neal and Deb Keller many years of success with their small business, Keller Kountry Korner.

Continue to Meet FDDC’s Board of Directors

First District Development Company Page 3

FDDC Client Receives Award…

Catering By Marlin’s, Inc. & Hungry’s Restaurant, Inc.

2011 Family-Owned Business of the Year

At the South Dakota SBA Small Business Week celebration this past May, Catering By Marlin’s, Inc. & Hungry’s Restaurant, Inc. received honors as the South Dakota Family-Owned Business for 2011. The company won similar recognition for the SBA multi-state region which includes Colorado, Montana, North Dakota, Utah, and Wyoming, in addition to South Dakota. The joint companies are owned and operated by six siblings of the Sejnoha family and their mother, Karel Sejnoha, all pictured to the right. From humble beginnings in Lake Andes, South Dakota, Marlin Sejnoha Sr. and his wife, Karel, started their family restaurant in 1975, along with the help of their six children. In 1985, they moved the family to Sioux Falls to manage an airport restaurant and to open their own diner, Marlin’s Family Restaurant. All six siblings worked at the restaurant and then went on to college to pursue various career paths. Eventually, they all returned to the family business. As the family grew, the Sejnoha’s knew they needed to find profitable ways to expand. In 1997, they entered correctional managed food services for a county correctional facility. From there, they entered corporate dining services and have recently expanded to managed food services for schools. Today, they have over 200 plus operations in 27 states which include multi-unit restaurants, airport managed services, multi-unit convenience stores, national corrections services, and national child nutrition. Their employees have grown from eight to over 800. Growing from a small town restaurant to serving over 35 million meals per year is certainly one of the many reasons the Sejnoha’s were recognized as the 2011 Family-Owned Business for both South Dakota and the Region. First District Development Company is honored to have worked with the Sejnoha’s on three SBA 504 loans.

Pictured from left receiving their award: Valerie Headlee; Paula Hulscher, FDDC; Marlin Sejnoha, Jr.; Stephanie Richter; Shane Sejnoha; Amy Waite, FDDC; Karel Sejnoha; Dustin Sejnoha; Katie DeBoer, FDDC; & Amber Garry

First District Development Company/First District Association of Local Governments currently manage or retain ten (10) revolving loan funds that businesses can access to fund new business construction projects, existing business purchases, or expansion projects. In total, we currently have approximately $2 million available to lend out. Each fund has specific geographic areas that it serves. All of these revolving funds are used in conjunction with local bank financing to assist businesses that create or retain employment opportunities as a result of their projects. Some of these funds can also be used to finance community projects that will ultimately assist a small business. Generally used for smaller projects, the maximum available to one borrower is $250,000. For more information on these programs, contact FDDC.

Funds Available

For Businesses

20-Year Debentures 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 Feb 2011 6.07 Mar 2011 5.94 Apr 2011 5.90 May 2011 5.64 Jun 2011 5.52 Jul 2011 5.59

10-Year Debentures Jul 2010 4.17 Sep 2010 3.69 Nov 2010 3.53 Jan 2011 4.71 Mar 2011 4.89 May 2011 4.59 Jul 2011 4.50

For July 2011, a total of $252,147,000 twenty-year debentures (or 474 loans) and $27,080,000 ten-year debentures (or 60 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 July 2010 - July 2011

Be FIRST to get it FIXED!

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

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