May 2020
May 2020 Interest Rates
25 Year Rates

2.76% - Standard & Refinance

20 Year Rates

2.69% - Standard & Refinance
10 Year Rates

2.65% - Standard & Refinance

There Has Never Been a Better
Time to Refinance with the 504 Program!


Lenders, it is a great time to look through your portfolio to see if you have a customer that needs to refinance their existing debt!


  • PAYMENT FORGIVENESS - Any loan that is approved and funds prior to the September bond sale will receive 6 months of payment forgiveness - Under the CARES Act, the SBA will make the borrower's first 6 months of loan payments. Funding is subject to having ALL required documentation prior to closing. Call our office for more details and to see if your loan is eligible.

  • RECORD LOW RATES - Reduce your borrower's interest rate risk! Current rates for May fundings (fixed for entire term):

  • 2.76% for 25 years
  • 2.69% for 20 years
  • 2.65% for 10 years

  • CASH OUT - Provide needed liquidity for eligible business expenses



Example of a Straight Refinance with Cash Out for Eligible Expansion

An existing manufacturer is seeking to refinance a commercial real estate loan that has a current balance of $650,000. Additionally, they would like to take advantage of SBA's 504 option of cash out for eligible business expense, which would be used to pay rent, utilities, and wages over the next 18 months. An appraisal was recently completed and provided an "as is" market value of $1,000,000.

We would structure the deal as follows:
  • Operating Company must be at least two years old.
  • Loan to be refinanced must have been originated more than two years ago, be current over the past 12 months, and not be an SBA/government guaranteed loan.
  • At least 85% of the original use of proceeds of the note being refinanced must have been used for SBA 504 eligible costs.
  • Cash out for eligible business expense is up to 20% of the appraised value, but the SBA 504 loan is limited to an 85% LTV.
  • Eligible business expenses can be used for most G&A expenses such as rent, wages, utilities, etc. that will be expenses over the next 18 months.
  • Bank term must be 10 years (can reprice anytime). Amortization does not need to match SBA term of 25 years.
Advantage to borrower:

  • Land equity used for down payment.
  • SBA 504 loan allows borrower to refinance existing debt at a low fixed rate for up to 25 years.
  • Cash out of $200,000

For more information, please see our Debt Refinance Guide and call one of our loan officers.
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
Northern Michigan and Lansing Market

Kelly Schramski
(734) 751-6933
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 Staff
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) 751-6933

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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