July 2019
July 2019 Interest Rates
25 Year Rates

4.01% - Standard
4.04% Refinance
20 Year Rates

3.91% - Standard
3.95% - Refinance
10 Year Rates

3.94% - Standard
3.98% Refinance

10 year debentures are funded ever other month; therefore, the May 2019 10 year rates are quoted above.
EDF Welcomes Two New Employee!
Tom Bell
Southeast Michigan Loan Officer
Tom Bell has over twenty-five years of commercial lending experience in Southeast Michigan. Over that span, Tom has worked as a Commercial Loan Officer and Vice President for community banks as well as Midwest regional commercial banks, all with an emphasis on relationship sales. Tom is well versed in the 504 Loan Program and takes great pride in exceeding client expectations. Most recently, Tom served as an SBDC Counselor working with small business owners to acquire funding. Tom understands the commitment and follow through necessary to usher deals from initial structuring to ultimate funding. Tom will be covering all of Southeast Michigan including Oakland, Macomb, Wayne, Washtenaw, Monroe, Genessee, and Livingston counties. Tom has extensive experience in these markets having worked and lived in the region his entire career.

Tom graduated from Michigan State University with a Master's of Business Administration and resides in Brighton with his wife, Christine, and sons Gavin and Griffin. He is active in the community having been a member of several local Chambers of Commerce. Tom volunteers at the Humane Society and is a volunteer youth basketball and football coach.

Tom can be reached at (810) 599-4074 and by email at tom@growmichigan.com
Daniel Reyes
Underwriter
Daniel Reyes is a recent graduate from Olivet Nazarene University. He grew up in the windy city of Chicago, IL. and recently made the move to Grand Rapids to start his professional career with EDF as an Underwriter. Daniel has enjoyed the learning curve and the new opportunity and he is excited to work with lenders and small business owners throughout the state. Daniel plans to be married at the end of the summer and is excited about this new season of life!

Daniel can be reached at (616) 323-1271 and by email at daniel@growmichigan.com
Monthly 504 Loan Example!
Equipment and Building Purchase
Many lenders do not know that the 504 Loan Program can be used to help small businesses and manufacturers finance heavy duty machinery and equipment. This can be done either as a stand-alone project or as part of the real estate transaction. Other than justifying the economic lifespan, the 504 machinery and equipment loan is no different from any other 504 loan. If the useful life is 10 years, it can be done with a 10 year term, and if the useful life is 15.5 years or more it can be done with the 20 or 25 year term. This month's example features a business buying a building and purchasing equipment, and how to structure it.
Request:

An existing uniform company was cleaning over 15,000 uniforms per week. Their existing equipment was over 30 years old and in need of upgrades and replacement to increase efficiency and meet demands. The borrower requested a 20 year debenture versus a standard 10 year debenture to purchase the new washing equipment. In order to support the 20 year debenture, an independent industry expert provided an analysis which supported a useful life of the equipment.
Comments:

  • The washing equipment has a remaining useful life of greater than 15.5 years, which allows either a 20 or 25 year debenture. A contingency was added to include installation costs related to the equipment being purchased.
  • Bank term must be 10 years (can reprice anytime).
  • Amortization does not need to match SBA term of 20 or 25 years.
  • SBA's max percentage of the project is 40%
  • The borrower's lease term for the land (or real estate) must match the SBA debenture term. This can be satisfied through lease renewal options.

Advantage to Borrower:

  • Low down payment of 10%.
  • Fixed rate on 40% of the project.
  • Lower monthly payment vs.conventional financing.
To learn more about the benefits of the SBA 504 Loan Program, or how EDF can assist you, please visit our website at   www.growmichigan.com   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
5 Loans
Choice One
3 Loans
Chemical Bank
2 Loans
Grand River Bank
2 Loans
Huntington Bank
2 Loans
West Michigan Community 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
Mercantile Bank
1 Loan
mBank
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 Shore Bank
1 Loan
FY 2019 Total
Totals as of 07/25/19
28 Loans
EDF Staff
Julie Parker
President
(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
Underwriter
(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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