What We Finance

AEDC has loan funds available from a variety of sources from the City of Arcata, the Small Business Administration, Headwaters Funds, USDA, Community Development Financial Institution and others. This means that AEDC loan officers have the flexibility to work with a variety of options to meet your borrowing needs. Here are some of the many ways we can help you: 

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

These loans can be used for business start-up costs or expansion, inventory, equipment or leashold improvements. They are available in our six county service area PLUS Shasta County. Term and loan amounts vary depending on business needs.

To apply for new business loan, be prepared to provide the following:


  • A written business plan, including financial projections for two years.


  • Personal tax statemetn 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.)




Energy Efficiency Loans

  • Loans up to $50,000 for up to 10 years 7% interest. 

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



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. 

City of Arcata Business Loans

AEDC was formed in 1978 in partnership with the City of Arcata and we continue to work together to bring economic health to the city by offering low interest rate loans for commercial developers or property owners. 


With an interest rate between 3% and 4.5%, and terms from one to 20 years, borrowers are eligible to apply for funds for 


  • Operating Capital 
  • Furniture and Fixtures
  • Building Rehabilitation 
  • Equipment Purchases 
  • Refinancing of Exisiting Debt
  • Real Property Acquisition 
  • Offsite Improvements

For more information about how you can apply, please call AEDC at 822-4616.