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.

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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).

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Line of Credit Loans

Can be used for inventory and seasonal working capital requirements.  

Energy Efficiency Loans

• Loans up to $50,000 at a variable rate of Prime+2 adjusted quarterly with an annual renewal period.

For additional information call the AEDC Small Business Lending Center's loan manager at 707-822-4616.

Download a Loan Application here.