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SBA Recognizes Lancaster's EDC Finance Corporation as Leading 504 Lender in Eastern Pennsylvania

Local Certified Development Corporation makes 24 loans for more than $23 million
Release Date: 
Wednesday, December 10, 2014
Release Number: 
Contact: | 610-382-3084

LANCASTER, Pa. – The U.S. Small Business Administration’s Philadelphia District Office recognized EDC Finance Corporation as its Certified Development Company (CDC) of the Year on Friday, Dec. 5 at the organization’s annual membership meeting.  The award, presented by the District’s Lead Economic Development Specialist Don Jefferson, recognized EDC Finance Corporation for making the greatest number of 504 loans in eastern Pennsylvania.

“SBA applauds EDC Finance Corporation’s commitment to funding underserved businesses in eastern Pennsylvania that ultimately creates jobs and improves communities,” said Tony Leta, Acting Philadelphia District Director.  “With 24 loans for more than $23 million, EDC is eastern Pennsylvania’s leading CDC for fiscal year 2014.”

EDC Finance Corporation is a private, non-profit organization founded by the Economic Development Company of Lancaster County (EDC) in 1986 to provide Lancaster County businesses access to state and local economic development incentive financing programs.

“EDC Finance is very pleased we were able to successfully deliver SBA 504 loans to many great Lancaster County companies in 2014.  We are also pleased we have been able to share our 504 knowledge with our economic development partners in Adams, Cumberland, and York counties to allow their companies to also have reliable, local access to the 504 product,” said Lyle Hosler, EDC Finance’s Vice President, Director of Finance.  “An SBA 504 loan is just a tremendous financing option for banks and companies to consider when they are expanding their real estate or equipment needs due to the 10 & 20 year fixed rates, minimum 10% equity requirement, and subordinate lien position.”

CDC’s are nonprofit corporations, certified and regulated by the SBA, that work with participating lenders to provide financing to small businesses.  EDC Finance Corporation received the CDC designation from the SBA to administer the 504 program throughout the entire state of Pennsylvania in April 2008, and has since gone on to expand delivery of SBA 504 loans from Lancaster county to include its partner counties: Adams, Cumberland and York.

SBA’s 504 Loan Program is a tiered financing vehicle that provides long-term, fixed-rate financing for major fixed assets, such as land and buildings.  504 loans are available through CDCs, like EDC Finance Corporation, are economic development organizations that work with SBA and conventional lenders to offer loans under the 504 Program to qualified borrowers.  Loans through the program can be an affordable option for borrowers because they require a relatively small borrower equity injection and generally offer favorable blended interest rates and repayment terms that are often longer than standard.

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