Tuesday, January 12, 2021
January 2021 Interest Rates
25 Year Rates
2.54% - Standard and Refinance
20 Year Rates
2.50% - Standard and Refinance
10 Year Rates
2.25% - Standard and Refinance
How the Consolidated Appropriations Act, 2021 Impacts Current and Future 504 Borrowers
On Sunday, December 27th, President Trump signed into law the "Consolidated Appropriations Act, 2021". This legislation contains enhancements that will affect small businesses with existing SBA 504 loans and future borrowers that have their loans approved between February 1, 2021 and September 30, 2021. Below is a brief summary of the provisions that are to come.

Disclaimer: Please note that all information below is based on our industry's interpretation and is subject to pending SBA implementation and guidance. Much remains uncertain until this has been received.
Continued Payment Forgiveness For Existing
SBA 504 Borrowers That Had Loans
APPROVED Prior to March 27, 2020

The language in the bill surrounding continued payment forgiveness is centered around the date a loan was APPROVED or authorized; therefore, payment forgiveness will be different for each individual borrower. It is our understanding that most of the loans in our portfolio that were approved prior to the CARES Act (March 27, 2020), will receive the following starting in February.

  • Three months of payment forgiveness (principal, interest and fees) for the months of February, March and April, 2021.

  • Payments will be capped at $9,000 per loan per month. We will know more regarding implementation once we receive SBA's further guidance.

  • Subsidized principal, interest and fee payments may continue for borrowers with loans in the hardest hit industries for an additional five (5) months. The legislation includes industries such as food services and accommodations; arts, entertainment and recreation; education; and laundry and personal care services. Loan payments will also be subject to the $9,000 per month per loan cap.

  • Forgiven payments will NOT be treated as taxable income to the borrower for FEDERAL income tax purposes and any tax deduction arising from these payment subsidies will accrue to the borrower as if the payments were made by the borrower.

For loans approved after the CARES Act (March 27, 2020), there may still be benefits. EDF will be reaching out to each borrower separately to discuss their specific situation based on their loan approval date.
Benefits for Future 504 Borrowers

We believe the legislation provides incentives to future small business borrowers as well, such as:


  • Loans that are APPROVED between February 1, 2021 and September 30, 2021 will receive six (6) months of payment relief upon funding (capped at $9,000 per month, per loan).


  • The legislation eliminates the 0.5% SBA Participation Fee and the 1.5% CDC Processing Fee for all loans APPROVED from the date of enactment of the Act and ending on September 30, 2021.


The legislation provides substantial improvements for 504 debt refinancing including:

  • Strengthening 504 debt refinance with expansion by increasing the debt refinance amount from 50% to 100% of expansion costs.

  • Strengthening 504 debt refinance without expansion by allowing the refinance of government guaranteed debt, and allowing for the refinance of Qualifying Debt that is only 6 months old vs. 2 years old.

  • Eliminates the requirement that the business must be current on all payments over the last 12 months (this will now be a credit consideration rather than an eligibility issue).


Once implemented, the legislation grants CDC's with Accredited Lenders Program (ALP) status the ability to approve, authorize, close, and service 504 loans of $500,000 or less. The program will expire on September 30, 2023. EDF is one of a limited number of ALP lenders across the county that will be eligible to participate in this program.

As mentioned above, there are still a lot of unanswered questions, and EDF will be communicating with our lenders and our borrowers as we learn more. If you would like to schedule a time for one of our lenders to connect with your group and set up a time to meet, please see below.
Schedule a Zoom Call with One of Our Lenders
to Learn More!
EDF has three loan officers covering the State of Michigan and we are anticipating there to be a lot of questions regarding the new legislation. We are anxious to learn more and share it with you! If you would like to schedule a time for one of lenders to meet with your group, please connect with the appropriate loan officer below to schedule a time.
West Michigan Market

Bradd Pierce
(616) 323-1277
East Michigan Market

Tom Bell
(810) 202-1750
Northern Michigan and Lansing Market

Kelly Schramski
(734) 821-7280
Lender Leader Board
FY 2021
EDF would like to thank all of the lenders that have had loans authorized with us in FY 2021. At the end of our current fiscal year (09/30/2021), the lending institution with the most loan approvals will receive EDF's Lender of the Year Award.
EDF Team
Julie Parker
(616) 323-1273

Gary Witkowski
VP of Loan Operations
(616) 323-1275

Sales Department
Bradd Pierce
Senior Loan Officer
West Michigan Market
(616) 323-1277

Tom Bell
Loan Officer
East Michigan Market
(810) 202-1750

Kelly Schramski
Loan Officer
Northern Michigan and Lansing Market
(734) 821-7280

Credit Department
Amy Dubridge
Loan Officer
(616) 323-1279

Daniel Reyes
(616) 323-1271

Sharon Christy
SBA 7(a) Specialist
(616) 323-1280

Closing Department
Kyle Wilson
Director of Closing Operations
(616) 323-1272

Abbey Byrne
Closing Manager
(616) 323-1274

Michelle Vargo
Closing Specialist
(616) 323-1278

Servicing Department
Laura Seromik
Servicing and Compliance Manager
(616) 323-1273

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