EDF Newsletter - October 2019 - Record Low Interest Rates, EDF Loan Officer Announcement, 2019 Lenders Cup Champion, and 2019 Lender Leader Board!

October 2019

October 2019 Interest Rates

25 Year Rates

3.54% - Standard

3.57% Refinance

20 Year Rates

3.46% - Standard

3.50% - Refinance

10 Year Rates

3.56% - Standard

3.60% Refinance

10 year debentures are funded every other month; therefore, the September 2019 10-year rates are quoted above.

EDF Welcomes a New Loan Officer!

Kelly Schramski

Northern and Central Michigan Market

EDF is pleased to welcome Kelly Schramski to the EDF team as a Loan Officer. Kelly will be working to develop and foster relationships with lenders, small businesses, economic development professionals, and other partners, covering Northern Michigan as well as the Lansing area.

Originally from Canton, MI, Schramski attended Michigan State University to attain a Marketing degree and later moved to Traverse City. She brings with her over ten years of banking, lending and business development experience. Throughout these years, Schramski has served as the Assistant Vice President of Commercial Lending at Independent Bank (formerly Traverse City State Bank), as well as a Commercial Loan Administrator for TBA Credit Union.

Over the years, Schramski has worked closely with EDF on many 504 loan projects and has always had a positive experience and a great working relationship with the organization. She is now very excited to cultivate new relationships with financial institutions and will be working to develop the SBA 504 loan program in Northern Michigan and Lansing. In her free time, Schramski enjoys spending time with family and friends - especially her two daughters - reading, walking along the Traverse City water, finding new local restaurants in Northern Michigan, and cheering on the Spartans every chance she can get.

For more information regarding EDF or the SBA 504 loan program, contact Kelly Schramski at (734) 751-6933 or Kelly@growmichigan.com.

Monthly 504 Loan Example!

Expansion Refinance Project

The 504 loan program allows small businesses to refinance debt with the expansion of a new project. For every dollar of new project cost, $0.50 of existing debt can be refinanced. Stay tuned...in next month's example we will highlight SBA's other refinance program that has a cash out component and does not require expansion.

Request:

An existing restaurant is seeking to expand to a second location. They have a current SBA 504 loan with EDF that has been in place for six years. The request is to purchase, improve the new location, and refinance the existing bank and SBA 504 loans on the existing location. There is sufficient equity to support the proposed request.

Comments:

The borrower qualifies for a 10% down payment, but based on new appraisals has existing equity of 23%. As a result, the bank and SBA loans can be equal at 39% of the total project costs.
It is eligible to refinance existing SBA loans with the expansion refinance product.
Amount of maximum refinance is $1,689,450, which is half of the new money being requested (not counting land equity).
In order to qualify, the holding company must be the same for both properties.
Bank term must be 10 years (can reprice at any time). Amortization does not need to match SBA term of 20 years.
Bank and SBA will have 1st and 2nd liens on both properties.

Advantage to borrower:

No cash out of pocket for down payment.
Borrower was able to utilize existing equity from their original property to be used for the down payment at the new location.

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

Bradd@growmichigan.com

East Michigan Market

Tom Bell

(810) 599-4074

Tom@growmichigan.com

Northern Michigan and Lansing Market

Kelly Schramski

(734) 751-6933

Kelly@growmichigan.com

Lender Leader Board

FY 2019

EDF would like to thank all of the lenders that have had loans authorized with us in FY 2019. Independent Bank had the most loan approvals, and is this year's Lender of the Year!

Independent Bank

6 Loans

Huntington Bank

4 Loans

Choice One

4 Loans

Chase Bank

3 Loans

Chemical Bank

3 Loans

Grand River Bank

3 Loans

State Savings Bank

2 Loans

Sturgis Bank and Trust

2 Loans

Comerica Bank

1 Loan

Fifth Third Bank

1 Loan

Macatawa Bank

1 Loan

mBank

1 Loan

Mercantile Bank

1 Loan

Old National Bank

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 09/30/19

37 Loans

EDF 2019 Lenders Cup Tournament

And the Winner Is..........

West Michigan Community Bank

On September 12, 2019, EDF hosted it's Twelfth Annual Golf Outing featuring our Third Annual Lenders Cup Tournament!

The Lenders Cup is a competition among the lending institutions that had loans authorized with EDF over the past fiscal year. The following banks competed:

Chase Bank, Chemical Bank, Choice One Bank, Comerica Bank, Grand River Bank, Huntington Bank, Level One Bank, Mercantile Bank, Old National Bank, PNC, State Savings Bank, Sturgis Bank and Trust, and West Michigan Community Bank

The Lenders Cup was won this year by West Michigan Community Bank. They were the defending champions from last year beating out Huntington Bank by one stroke!

Special thanks to this year's sponsors: