Small Business Lending Center
What we finance
AEDC loans are subject to our loan approval process. Interest rates are fixed and depend upon current market factors, your credit worthiness as a borrower and the risk inherent in the project. Download a Loan Application here.
Purchase or Expansion of a Business
AEDC makes commercial loans that finance up to
90% of the overall project cost on business acquisition and expansion loans.
These loans can be made for a variety of purposes such as business acquisition,
inventory, equipment, working capital, and/or commercial real estate
- Loan amounts range from $10,000 to $250,000. If the loan is for more than $250,000, participation from a third party lender (bank or seller, for example) is allowable.
- Loan term varies with purpose of the loan. If you are borrowing mostly to purchase real estate, a 20-year term may be appropriate. If you are purchasing inventory and equipment, then only a 5 or 10-year term may be necessary.
Purchase of Commercial Real Estate or Heavy Equipment,
Commercial Construction Projects
Our primary loan program for financing
the purchase, construction renovation and expansion of commercial real
estate, or purchase of heavy equipment is the SBA 504 loan program.
This loan offers key benefits to the borrower, which includes a relatively low equity injection and a fixed rate. The SBA 504 is typically structured with 10% of project costs from the borrower, 40% from AEDC and 50% from your financial institution. (Certain restrictions apply.)
- Loan amounts range from $50,000 to $2 million ($4 million for small manufacturing) for the SBA portion of the loan.
- SBA 504 loan terms are 20 years for real estate purchase, construction or expansion and 10 years for equipment purchase.
- SBA 504 loan rates are fixed and compare to the US Treasury 5 and 10 year T-bill plus a margin. Call for the current rate.
Micro loans to start or expand a small business
Office equipment and large industrial equipment qualify. A 10%-25% owner equity
injection is required for machinery and equipment loans.
- These loans can be used for new business start-up costs or expansion, inventory, equipment or leasehold improvements.
- Term and loan amounts vary depending on the business
needs.
To apply for a new business loan, be prepared to provide the following:
- A written business plan, including financial projections for two years.
- Personal tax statement for all owners for the previous three years.
- Physical collateral whose resale value equals the value of your loan, or a qualified guarantor (someone who promises to pay your loan should you default).
Line of credit loans
Can be used for inventory and seasonal working capital requirements.
- Loans up to $50,000 at a variable rate of Prime+2 adjusted quarterly with an annual renewal period.
Energy efficiency loans
- Loans from $10,001-$150,000.
- 7% fixed interest rate for up to 10 years.
- Can be used for the installation of solar energy equipment or any energy efficiency equipment that is eligible for PG&E rebate programs.
Asset Builder Loans
Family income must be at or below County median income. This loan can be used for inventory, equipment or leasehold improvements and a business plan is required.
- Loans up to $10,000.
- Must be a business start-up or less than 2 years old.
- Fixed rate of 7%, for up to 5 years.
For additional information call the AEDC Small Business
Lending Center's loan manager at 707-822-4616.
Download a Loan Application here.