July 2020
July 2020 Interest Rates
25 Year Rates

2.41% - Standard and Refinance

20 Year Rates

2.35% - Standard

10 Year Rates

2.40% - Standard and Refinance


The SBA 504 loan program allows several different sources for the borrower's injection! SBA's favorite source (and most obvious down payment method) is cash. However, when potential borrowers do not have sufficient cash, SBA does allow the following:
  • Seller financing
  • Land Equity
  • Grants
  • Equipment Equity
  • Bank Loans
  • Gift Money (need copy of gift letter)
  • HELOCs

There is one rule to make note of when borrowing the injection. If the lender of the injection takes a third lien on the SBA 504 asset, their term must match the SBA 504 term (10, 20, or 25 years depending on the term of the SBA loan). For example, if the source of injection is from a seller note and the seller wants to take a third lien on the SBA 504 asset. Their term must be 20 years to match the SBA 504 loan. If they take other collateral (or no collateral) then their term can be negotiated.

Also, please note that a 504 project cannot have more than 50% of its financing from federal funds. So, that would impact the use of federal grant. However, there is no limit for state grants.

Additionally, equipment equity for straight refinance deals can be used if the original use of proceeds was to purchase equipment.
If you have a particular scenario or situation you would like more guidance on, or if you have any questions, please feel free to call one of EDF's Loan Officers.

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
Featured Funding
Heneveld Industrial Group, LLC
Dan Heneveld and Jeff Boyd have been friends since the 6 th grade. When Dan opened Heneveld Group in 1991, it was not long until Jeff soon joined him on this business venture. Together, the two have been operating Heneveld Industrial Group since 1993.

Originally, Heneveld Group was based on a manufacturer representatives’ model. The best friend duo worked out of their homes, visiting people both near and far. In the late 1990s, Dan and Jeff decided to shift the business to a distribution model and buy out a filter distribution company, expanding their revenue stream and better meeting the needs of their customers. To accommodate for this growth, they moved the business out of their homes into an industrial condo, where they operated for several years.

As business continued, so did the Heneveld Group’s development and growth. In the depth of the economic downturn of 2008/2009, Dan and Jeff decided to start their own industrial electrical and mechanical division, as so many of the contractors they were using were going out of business. They still had plenty of work to do, and there were numerous talented people available. Eventually, they merged their multiple divisions into one, creating Heneveld Industrial Group in 2012.

In 2018, Dan and Jeff were faced with a bigger challenge: in addition to the three industrial condo units they owned and used for office and warehouse, they rented space in a building next door for the fabrication, and service portion of the business. The space was sold, and the new owner needed the whole building, and they were left looking for a solution. After many months looking, they found a space in Zeeland that would fit their needs but needed financing to make the move affordable. It was at this point that Dan and Jeff were introduced to the SBA 504 loan program by the Economic Development Foundation (EDF).

“The SBA 504 loan program was very beneficial for us,” explained Jeff. “We were expecting to have to put down 20% with a traditional loan, so only having to put down 10% was a huge relief.” Due to the savings from the SBA 504 program, Dan and Jeff were able to preserve that capital and put it to work in improvements to the building instead. “There are bells that the SBA wants you to ring, and EDF had a really good understanding of those bells and were able to simply explain them to us in a way we could understand. Because of the SBA 504 loan, we now have 24,000 square feet of operating space and everybody is under one roof, allowing our business to operate more efficiently.”

For more information on Heneveld and their services, visit their website at www.heneveld.com and to read the full Heneveld Success Story click here .
Lender Leader Board
FY 2020

EDF would like to thank all of the lenders that have had loans authorized with us in FY 2020. At the end of our current fiscal year (09/30/2020), 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
Bradd Pierce
Senior Loan Officer
West Michigan Market
(616) 323-1277

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

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

Amy DuBridge
Loan Officer & 7(a) Loan Specialist
(616) 323-1279
Daniel Reyes
(616) 323-1271
Abbey Byrne
Closing Manager
(616) 323-1274
Michelle Vargo
Closing Specialist
(616) 323-1278
Laura Seromik
Servicing and Compliance Manager
(616) 323-1273
Kyle Wilson
Closing and Servicing Specialist
(616) 323-1272
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