SBA lenders
TMC Financing
TMC Financing is a nonprofit Certified Development Company that arranges SBA 504 financing for small business owners buying, building, or refinancing the commercial property their business occupies. It was founded in 1981 and describes itself as the nation's No. 1 SBA 504 lender.
The 504 structure pairs a conventional first-lien lender with the CDC: a conventional lender provides 50% of total project cost, the CDC and SBA provide up to 40%, and the borrower puts down 10%, or 15% for new businesses or special-purpose properties. The SBA portion carries a below-market fixed rate, a 25-year fully amortized term, and no additional collateral requirement. The company also offers SBA 7(a) working capital financing and handles servicing on funded loans, including payoff and prepayment processing.
TMC reports more than $16 billion in SBA 504 financing secured, over 8,000 small businesses financed, and more than 63,000 jobs created. It serves small businesses in Alaska, Arizona, California, Guam, Hawaii, Nevada, and Oregon, and holds an SBA designation that lets it make credit decisions on the SBA's behalf, which it says can produce loan approval in as few as 30 days.
Eligibility turns on owner-occupancy: the business must occupy at least 51% of an existing building or 60% of new construction. Confirm eligibility, current rates, and fees with the lending team, since rates change and the 504 debenture is capped per project.
Best for
Small business owners buying, building, or refinancing the property their own business occupies in Alaska, Arizona, California, Guam, Hawaii, Nevada, or Oregon. Not a fit for investors buying property they will not occupy.
What they do
- SBA 504 commercial real estate loans
- SBA 504 construction and renovation financing
- SBA 504 refinancing
- SBA 7(a) working capital financing
- Special-purpose property financing
- Equipment and furnishings financing under the 504 program
- Loan servicing for funded 504 loans
Details
| Attribute | Value |
|---|---|
| Founded | 1981 |
| Ownership | Nonprofit |
| How they charge | SBA 504 projects are structured with 50% from a conventional lender, up to 40% from the CDC and SBA, and a 10% borrower down payment, or 15% for new businesses and special-purpose properties. |
What stands out
- Reports more than $16 billion in SBA 504 financing secured and over 8,000 small businesses financed.
- Reports more than 63,000 jobs created through the projects it has financed.
- Serves small businesses in Alaska, Arizona, California, Guam, Hawaii, Nevada, and Oregon.
- Founded in 1981 as a nonprofit Certified Development Company regulated by the SBA.
- Holds an SBA designation allowing it to make credit decisions on the SBA's behalf, which it says can mean approval in as few as 30 days.
- Has financed projects ranging from $500,000 to $44 million.
Common questions
- How much can I borrow with an SBA 504 loan?
- The maximum SBA debenture is $5 million per project, or $5.5 million for manufacturers and energy-efficient projects. There is no limit on the first mortgage or the total project size; TMC has financed projects from $500,000 to $44 million.
- Am I eligible for a 504 loan?
- Most for-profit businesses in the United States are eligible. The business must occupy at least 51% of the building, or 60% for new construction.
- What is a Certified Development Company?
- A CDC is a nonprofit organization certified and regulated by the SBA that facilitates the 504 loan program from beginning to end. There are 230 CDCs nationwide, each covering a specific geographic area.
- Can an SBA 504 loan be paid off early?
- Yes, but on set terms. Full prepayments are accepted only on the 3rd of each month, written notice is required 15 days in advance, and funds must be wired. A declining prepayment premium adjusts at six-month intervals and no longer applies once half the loan term has passed.