The U.S. Small Business Administration (SBA) announced the certification of Richmond Economic Development Corporation (REDC) as a 504 Certified Development Company (CDC), effective immediately. As a lender under this program, REDC in partnership with financial institutions will be able to provide long-term, fixed-rate financing to small businesses for acquiring commercial real estate, machinery and equipment. Although, the license covers the State of Virginia, REDC will primarily concentrate its lending activities on small businesses located in the Richmond/Petersburg MSA. The maximum loan under the program could range as high as $4 million depending upon the type of business. When combined with a third-party loan at the upper end of the range, the program could provide financing for projects of up to $10 million. "We are delighted that REDC has been approved as a Certified Development Company and look forward to working with them in their new capacity," said Ron Bew, the local District Director of the SBA.

This certification by the SBA will allow REDC to broaden its market outreach, and serve a more diverse customer base of small businesses lacking access to traditional financing, said Stephen J. Schley, REDC's President and Chief Executive Officer. Additionally, the 504 loan program will complement REDC's existing array of small business products and services, and facilitate even greater community impact in terms of job creation and in stimulating public/private investment in low-income communities, said David N. Smith, REDC's Chairman of the Board, and Deputy Secretary of Commerce and Trade for Virginia. Melvin M. Ball, Senior Vice President of Managed Loan Programs, will supervise the 504 development loan program for the organization.

The certification of REDC as a licensed 504 Development Lender expands the organization's partnership with the SBA, inasmuch as REDC has been a licensed intermediary of the agency's microenterprise development loan program since 1998. Additionally, REDC is a certified Community Development Financial Institution (CDFI) and Community Development Entity (CDE) of the U.S. Department of the Treasury. REDC was incorporated in 1995 and has loans outstanding and under management of over $7 million, and capital funds approaching $1.9 million.

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