Monthly Interest Rates
and Other 504  News
March 2017
March 2017
Interest Rates
20 Year Standard
4.83%
20 Year Refinance
4.87%
 10 Year Standard
4.81%
 10 Year Refinance
4.85%
Lunch and Learns

Would you like your team to learn more about the 504 Loan Program?  EDF will bring lunch to your location and do a short presentation! To schedule a time, please contact Kyle at (616) 323-1272 or  Kyle@growmichigan.com
SBA 504 Program Guidelines
Eligibility
  • Must be a for-profit business.
  • Owner must occupy 51% of an existing building or 60 percent of newly constructed space.
  • Investment properties such as apartments and strip shopping centers are not eligible.
  • Refinancing under certain conditions is eligible.

Allowable Use of Proceeds

  • Acquisition of vacant land for construction.
  • Acquisition of existing land and building.
  • Building construction and/or renovations.
  • Machinery, equipment, furniture, fixtures located in building being financed.
  • Associated soft costs such as architectural fees, engineering, surverys appraisals, etc.

Rates, Terms, and Fees

  • Bank sets rate on their first mortgage loan.  If SBA term is 20 years, bank term must be at least 10 years.
  • Bank must pay a one-time fee of 1/2 of 1% to the SBA for participating in the program.
  • All SBA 504 costs are financed into the loan.
  • SBA 504 loans are assumable.

Collateral

  • Typically project collateral only. 
Featured Funding!
Rockwell Republic
 

EDF collaborated with Bank of America and Rockwell Republic in the funding of a SBA 504 loan! Jeff Lobdell owner of several popular restaurants had an opportunity to expand his restaurant repertoire and decided to purchase Rockwell Republic.   Jeff has been in the restaurant industry for 27 years.  He owns a collection of restaurants including Bagel Beanery, Beltline Bar, Grand Coney, The Omelette Shoppe, Red Geranium, Sundance Grill & Bar, Boone's Prime Time Pub and Flap Jack Shack.  Rockwell Republic is located in the heart of downtown Grand Rapids' growing restaurant and entertainment district. The existing restaurant/bar has been in business for 10 years and is a lively gastropub with made-from-scratch, seasonal cuisine served in an eclectic environment.

Jeff's lender, Jason Sorokin of Bank of America, worked with Bradd Pierce of  EDF  to finance the purchase of the building, which allowed Jeff to finance his building at a low rate, for 20 years with only a 15% down payment.  Jeff said, "The 504 program(s) worked very well for me as a businessperson. Much of my companies growth and growth opportunities, in the past, have come with the acquisition of restaurant businesses, but because of either the capital required or the specific situation I have not had many opportunities to acquire the real estate on which those restaurants operate. The Economic Development Foundation's program assisted me with the financing necessary in order acquire both Rockwell's Republic restaurant business and the real estate in which the business resides in downtown Grand Rapids. The ownership of the land and buildings will allow my company to diversify our assets, which makes us stronger, while still focusing on our core business in the hospitality industry."
 
To learn more about the benefits of the 504 Loan or how  EDF  can assist you or your clients, please visit our website at   growmichigan.com  or call our office at (616) 459-4825.


Rockwell Republic, 45 S. Division Ave, Grand Rapids, MI  49503
EDF's 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 fiscal year (9/30/17), the lender and lending institution with the most loan approvals will receive our Lender of the Year Award. Monthly,  EDF  will start posting this information so you can see where your bank ranks!

Traverse City State Bank
7 Loans
Huntington Bank
4 Loans
Chemical Bank
2 Loans
Chase Bank
1 Loan
First Community Bank
1 Loan
First National Bank of MI
1 Loan
Grand River Bank
1 Loan
Honor State Bank
1 Loan
Macatawa Bank
1 Loan
West MI Community
1 Loan
*Totals are as of 2/28/17


Do you want to see your name on this list?  We do too!  If you have a project that you would like to discuss, please call either Bradd Pierce  or Gary Witkowski.   Bradd can be reached at  (616) 323-1277 or  Bradd@growmichigan.com  and  Gary can be reached at (616) 323-1275 or  Gary@growmichigan.com .
 
Staff Directory

The EDF team consists of eight professionals with many years of SBA 504 experience combined, so please put our expertise to use and call us with any questions you may have about the program.


Pictured from Left to Right

Kecia Banks
Credit Manager
(616) 323-1279
Julie Parker
President
(616) 323-1276
Gary Witkowski
Loan Officer
(616) 323-1275
Bradd Pierce
Senior Loan Officer
(616) 323-1277
Matt Mankivsky
Junior Loan Officer
(616) 323-1278
Kyle Wilson
Servicing Manager
(616) 323-1272
Abbey Byrne
Closing Manager
(616) 323-1274
Laura Seromik
Closing Specialist
(616) 323-1273

Economic Development Foundation
616-459-4825
1345 Monroe Ave NW
Suite 132
Grand Rapids, MI 49505