August 2019
August 2019 Interest Rates
25 Year Rates

3.63% - Standard
3.66% Refinance
20 Year Rates

3.53% - Standard
3.57% - Refinance
10 Year Rates

3.94% - Standard
3.98% Refinance

10 year debentures are funded every other month; therefore, the July 2019 10 year rates are quoted above.
Monthly 504 Loan Example!

Real Estate, Construction, and Equipment

All rolled into One 504 Loan Project and
Still Qualifies for a 25 Year Term!

Below is a great example of rolling the cost of land, construction costs, and equipment into one 504 loan project to take advantage of the 504 loan program. In the example below, if the business would have been approved in FY 2019 and funded in the month of August 2019, they would have locked in an interest rate of 3.63% for 25 years. See the example details below:


A local franchiser of a national fitness chain purchased vacant land over two years ago and is going to construct a new fitness center and office space for his local headquarters. The borrower chose to use a combination of real estate equity and cash to contribute 15% of the total project cost and take advantage of the 25 year debenture. The entire building will be occupied by the operating company.

  • The borrower qualifies for 10% down payment but chose to contribute 15%. As a result, the bank portion is not required to be at 50% but cannot be lower than the SBA percentage. The SBA portion remains at 40% to maximize the amount of fixed rate financing. The bank portion decreases to 45%.
  • Land was purchased more than two years ago, which requires an appraisal with an "as is" market value of $400,000.
  • The borrower qualifies for a 10, 20, or 25 year debenture based on the weighted ratio of real estate dollars to equipment dollars. In this case, they chose a 25 year debenture.
  • The bank term must be 10 years (can reprice anytime). Amortization does not need to match the SBA term of 25 years.
  • The borrower meets the occupancy eligibility, which requires the operating company to occupy at least 60% of the total square footage with the intent to occupy 80% within the next 10 years.

Advantage to borrower:

  • Low down payment.
  • Borrower was able to use existing real estate equity for the down payment and preserve cash. 25 year fixed rate on 40% of the project.
  • Lower monthly payment vs. conventional financing.
  • SBA typically takes only project assets as collateral vs. taking all assets.
  • Borrower was able to maximize term by combining short term and long term assets into one 25 year debenture. Resulting in lower monthly payments and improved cash flow.
To learn more about the benefits of the SBA 504 Loan Program, or how EDF can assist you, please visit our website at   or contact one of our Loan Officers:
West Michigan Market
Bradd Pierce
(616) 323-1277
East Michigan Market
Tom Bell
(810) 599-4074
Lender Leader Board

EDF would like to thank all of the lenders that have had loans authorized with us so far this fiscal year. At the end of our current fiscal year (09/30/19), the lending institution with the most loan approvals will receive EDF's Lender of the Year Award.
Independent Bank
6 Loans
Huntington Bank
4 Loans
Choice One
3 Loans
Chemical Bank
2 Loans
Grand River Bank
2 Loans
State Savings Bank
2 Loans
Chase Bank
1 Loan
Comerica Bank
1 Loan
Fifth Third Bank
1 Loan
Lake Michigan Credit Union
1 Loan
Macatawa Bank
1 Loan
1 Loan
Mercantile Bank
1 Loan
Old National Bank
1 Loan
Sturgis Bank and Trust
1 Loan
Team One Credit Union
1 Loan
United Bank of Michigan
1 Loan
West Michigan Community Bank
1 Loan
West Shore Bank
1 Loan
FY 2019 Total
Totals as of 07/25/19
32 Loans
EDF Staff
Julie Parker
(616) 323-1273
Gary Witkowki
Vice President of Loan Operations
(616) 323-1275
Bradd Pierce
Senior Loan Officer
West Michigan Market
(616) 323-1277
Tom Bell
Loan Officer
East Michigan Market
(810) 599-4074
Amy DuBridge
Loan Officer & 7(a) Loan Specialist
(616) 323-1279
Daniel Reyes
(616) 323-1271
Abbey Byrne
Closing Manager
(616) 323-1274
Laura Seromik
Servicing and Compliance Manager
(616) 323-1273
Kyle Wilson
Closing and Servicing Specialist
(616) 323-1272
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