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East Texas Regional Development Co

East Texas Regional Development Company was established in 1983 as a non-profit Certified Development Company designated by the U.S. Small Business Administration.  The ETRDC mission is to promote and assist with the economic development  of East Texas through small business lending.  The primary lending program is the SBA 504 small business loan.  
READ our brochure.

What is the SBA 504 Program?
The SBA 504 Program is designed to provide long-term, fixed rate financing, to eligible businesses. Loan proceeds can be used for fixed assets such as real estate and long life equipment (10 years of life or more), new construction, and even improvements to existing properties. 
What are the Benefits of a 504 Loan?
Borrowers can benefit from a low down payment, fixed interest rate, and the long terms available through the program.  Lenders benefit from an excellent loan to value ratio, no restrictions on their rates, less paperwork, and low fees. In addition lenders can often participate in projects which exceed their lending limit and have the federal government as a subordinate lender.
How does the 504 Loan Program work?
The SBA 504 Loan Program involves a partnership between the SBA and Lenders. Typically Lenders loan 50% of the eligible project costs, the SBA lends 40%, and the borrower injects the remaining 10%.  In some cases the SBA may require that the borrower inject as much as 20% reducing the SBA portion to 30%.
Who is eligible for the 504 Loan?
Small businesses with a net worth of less than $7,000,000 and an average income, after taxes, of less than $2,500,000 are eligible. Income is averaged over a 2 year period.  
How much can my business borrow?
The East Texas Regional Development Company is limited to 40% of the total project cost up to a maximum loan of $1,000,000. In certain cases that maximum amount can be raised to $1,500,000. This can translate to a total project of approximately $3,000,000. The SBA can go as high as $4,000,000 for manufacturers in rural areas.
How do I apply for the program?
Applying is easy. Simply DOWNLOAD the application forms, and return the completed forms along with any attachments to the ETRDC offices or APPLY ONLINE.