Dispelling Myths: SBA 504 loans are only for small businesses

September 17th, 2013

Dispelling Myths: SBA 504 loans are only for small businesses

Dispelling Myths: SBA 504 loans are only for small businesses

The wheels of commerce require funding to continue turning, and during times of tight credit access it’s not always easy to find the money you need to keep moving. Oftentimes the funds you need are available; you just need to know where to look. One such resource, The Small Business Loan Administration (SBA), stands ready with capital opportunities for economic growth, but is sometimes shrouded in misinformation and myth. This is where TMC Financing helps. We are your facilitator between lending and the SBA. One of the most common myths we often hear is a belief that SBA 504 loans are only available to meet small loans of $5 million dollars or less. Based on a series of changes made in 2011 however, those monetary caps have been lifted to include loans that have no maximum monetary cap. The funds you need for property investment need not be shelved for a lack of available funding options.

Prevalent Myths…
Too many business owners erroneously believe that they are frozen out of traditional SBA 504 loans due to the maximum loan amounts caps of $5 million apiece. Today, the only cap is on the CDC’s (that’s TMC’s) investment portion. Under the new guidelines, the CDC (TMC’s) portion of the loan is the only portion that cannot exceed $5 million.

So what does this look like for a business owner’s real estate purchase?

(See what your loan parameters would be with our SBA 504 loan calculator.)

The net result of these misconceptions is that many business owners turn away from (or don’t realize) the opportunity to purchase their own building at below market rates, while retaining capital they truly need. In large part this may be because of the “small business” part of the moniker, “small business loans.” Ruling yourself out of the competition for these funds, before getting all the facts from a qualified and reputable source, such as TMC Financing, can mean the difference between buying your commercial property and continuing to pay rent without building equity.

TMC Financing is Your Portal to SBA Loans…
For entrepreneurs who are looking for the funding to move their business to the next level of success, TMC Financing is your portal to help your company’s expansion and facilitate real estate ownership. With more than three decades of experience, TMC has been in the vanguard of securing SBA Loans for over 4,200 businesses throughout Northern California. By providing access to over $7 billion in SBA Loans, TMC Financing is making sure that the wheels of commerce continue to turn for our clients.

Call us today to see how we can help jump start your business expansion with the funds that you’ll need tomorrow.