E-Newsletter
EDC Finance Corporation

EDC Finance Corporation Monthly E-newsletter

Our monthly e-newsletter profiles a service or program that EDC and EDC Finance provide to the business and agriculture communities. To subscribe, email Jean Rehrig or call 717.397.4046.

September 2009

SBA 504 Activity Rises in Lancaster County

Companies Hedge Interest Rate Risk with Popular Debenture Program

Despite the recent economic downturn, 2009 has proven to be a successful year for the SBA 504 debenture program offered by EDC Finance Corporation. Lancaster County companies continue to benefit from a low equity requirement and a temporary reduction in loan fees through the end of 2009, but more attention recently has turned toward the long term fixed interest rate benefits of 504 debentures.

All for-profit companies making a capital investment in real estate or equipment can consider using an SBA 504 debenture to fund up to 40% of their project costs in a subordinate lien position to their bank funding. Interest rates for 504 debentures have dropped dramatically in 2009 and have remained low throughout the summer. The best news for companies is these rates are fixed for the entire loan term, either 10 or 20 years.

Monthly 20-year SBA 504 fixed rates for 2009

January	6.67%
February	5.70%
March	5.60%
April	5.25%
May	5.37%
June	5.89%
July	5.24%
August	5.39%
September	5.14%

Ten year debentures are issued every other month and have averaged 4.55% since the March debenture.

Thus far in 2009, EDC Finance has approved SBA 504 debentures for companies in a variety of industries including a dental practice, a bowling center, a metal forming company, a food service facility, and a home goods retail expansion.

Time is running out to take advantage of reduced SBA 504 bond fee levels through the conclusion of 2009.

Companies interested in learning more about SBA 504 debentures and other financing opportunities are invited to attend a free lunch event (PDF) hosted by EDC Finance Corporation. The event will be held on Thursday, October 8th at the Heritage Hotel in Lancaster. If you would like to attend this event, please reply by e-mail to jfoster@edclancaster.com or visit www.edcfinancecorp.com for more details.

EDC Finance Corporation is Lancaster County's economic development resource leader. Please remember to visit our website at www.edcfinancecorp.com for the latest information on current funding resources and interest rates for all programs.