The Economic Development Foundation (EDF) is a non-profit lender who provides access to capital for small businesses that are purchasing or refinancing commercial real estate, and/or machinery and equipment. We are authorized by the U.S. Small Business Administration (SBA) as a Certified Development Company (CDC) to deliver the SBA’s 504 Loan Program. EDF is one of a small percentage of CDCs in the nation that SBA has approved into their Accredited Lender Program (ALP). As an ALP Lender, EDF has authority to process, close, and service 504 loans, and our customers receive expedited processing of loan approvals and servicing actions.
Since the 504 Loan Program can only be utilized by a small business through a CDC such as EDF, banks and credit unions must partner with us in order to offer it to their customers. Some of the benefits of using the program include:
- As little as a 10% down payment vs. 20% if done conventionally
- 10, 20, and 25 years terms
- Low interest rates – locked in for the termof the loan
EDF was founded in 1980 and is located in the Grand Rapids area. We have a small team of experts with many years of experience who understands how to streamline the process for both the small business in need of financing and the lending institution seeking to minimize their loan risk.
504 Loan Information
Small businesses are recognized as innovators and employment generators. Their success and growth is critical to the health of America’s economy. However, small businesses sometimes encounter difficulties securing long-term financing at affordable interest rates. Recognizing an opportunity to provide support, the Small Business Administration (SBA) offers businesses, and lending institutions that partner with them, an additional financing option with the SBA 504 Loan Program. It is the job of the Economic Development Foundation (EDF) to encourage the use of 504 lending throughout Michigan.