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 net worth of less than $7 million and an average net profit of less than $2.5 million for the last two years. 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.