Small Business Loans

Areawide Development Corporation

In 1981, the East Tennessee Development District formed its affiliate, the Areawide Development Corporation (ADC), to promote economic development in our region through the administration of various business loan programs. These programs include the SBA 504 Loan Program, the Economic Development Administration Revolving Loan Fund and the Rural Development Intermediary Relending Program. The Areawide Development Corporation is responsible for program marketing as well as packaging, closing and servicing the loans within each of these programs. Since its inception, the ADC has provided over $81 million in financing and more than 5,000 jobs throughout the East Tennessee region.

SBA 504 Loan Program

This program provides funding for the acquisition, construction, or renovation of commercial real estate or for the purchase of machinery and equipment. Eligibility standards require that the loans be for owner occupied, for-profit businesses with a tangible net worth of $15 million or less and an average net income after Federal income taxes for the preceding two completed fiscal years of $5 million or less. These loans have 10 year and 20 year terms, depending on the use of funds and offer a fixed rate for the life of the loan with no call dates. The financing structure for each loan project calls for 50% private lender first mortgage, a 10 – 20% borrower injection, with the balance funded through the SBA 504 Program.  See below for a list of current rates.

April 2017 Funding Rates

 10 Year20 Year
Debenture Rate2.63000%2.84000%
Note Rate2.73012%2.88846%

EDA Revolving Loan Fund

Funds from this program may be used for the purchase, construction, or renovation of buildings for commercial or industrial use; the acquisition of machinery and equipment; business start-ups; and working capital loans. These loans are available to for-profit businesses within the eligible municipalities and counties in the East Tennessee region and must provide for the creation and/or retention of jobs in those areas. The Revolving Loan Fund provides up to 90% of project financing not exceeding $200,000, with a fixed rate and terms of up to 15 years depending on the use of funds and ability to repay.

Rural Development Intermediary Relending Program

Funding from this program is for the purchase, construction, or renovation of commercial real estate; business acquisitions, working capital; or the purchase of machinery and equipment. Rural Development IRP loans are available to for-profit and some non-profit organizations for the promotion of economic development within the eligible rural municipalities and counties in the region. These loans have terms of up to 12 years and provide a maximum of 90% of project funding up to $250,000 per project.

For further information about these programs, please contact Debbie Sudhoff (dsudhoff@etdd.org), or Don Woods (dwoods@etdd.org), at Areawide Development Corporation. Phone (865) 273-6008 / Fax (865) 273-6010.