Lodge Owner Uses 504 to Purchase Hotel
Loan Program ‘Key’ in Completing Project
When the Black Hills Lodge in Spearfish became available to purchase in 2008, majority owner and managing partner Bill Collins used an SBA 504, in conjunction with his local bank, to finance the project.
“For me, using the 504 was definitely key in being able to buy the hotel,” Collins said. “I had looked at the property a few times, and when I decided to pursue, I worked with the GOED and Pioneer Bank in Spearfish to make it happen.”
Collins said that while he had some money in savings and a minority partner, “I probably wouldn’t have been able to buy the hotel without the 504. Both lenders worked with me to hammer out the details, and overall, the process went fairly smoothly.”
The Black Hills Lodge was built in 1989 and operated as a Kelly Inn until 2002 when it was purchased by an employee of Kelly Inns and changed over to a Best Western. Collins and his partner retained the Best Western Brand when they purchased in 2008.
The lodge is open year-round and has a variety of rooms, including suites and family- sized rooms. It is located in Spearfish, directly between Mt. Rushmore and Devil's Tower, among other Black Hills attractions.
Collins said that while South Dakota is a very business-friendly state when it comes to taxes, the state is also fortunate to have a quality work force.
“There are things that we often forget about that make our labor force quality, like work ethic and morals.” Collins said. “If you have a good attitude and a strong work ethic, you can do anything in South Dakota.”