Growing your Bay Area/Oakland Tech Company with an SBA Loan

Almost 75% of the best tech companies to work for in 2018 are headquartered in the Bay Area, according to recent data. This continues the growth trend in the Bay and Oakland area for tech companies. With all of this growth and expansion comes the question of where to find flexible and affordable financing.

Traditional banks and brokers might be your first stop, but you might want to consider financing your expansion with a Small Business Administration (SBA) 504 loan through a Certified Development Company (CDC) like TMC Financing. Whether you are looking to purchase land or buildings for your tech company, improve or upgrade company buildings, purchase equipment, or refinance debt, TMC Financing can help you work through the process of financing these endeavors with a low rate SBA loan.

Now is the Time to Expand your Tech Company

Currently, large blocks of real estate are in high demand in the Bay Area; more tech companies are looking to break into the area for growth opportunities as well as the positive connotation a Silicon Valley location offers.  Many tech companies are taking advantage of leasing smaller office blocks or partnering up in co-working space.

You already have office space, so why does this matter to you? The short answer is that greater interest in a location means rising rent prices and more tenuous leases. Purchasing the building you are leasing now, or buying a new building, will give you all the space you need at a fixed mortgage rate. Meanwhile, owning the building gives you the opportunity to rent out valued space and generate extra income.

If you are interested in making a change, now is the time to act. Pricing trends for office real estate in the Bay Area has been in more of a valley than a peak over the past three years and should remain there for the next year or two. However, prices can rise at any time in this highly sought after market. Now just might be the optimal time to expand your business with the help of an SBA 504 loan.

Growing or Starting your Bay Area Tech Company with an SBA 504 Loan

Locating and securing financing can be tough for a tech company that started from the ground floor, especially when you are forced to look at financing options outside of traditional banks and brokers. The SBA’s 504 loan program can help you address your tech company’s  financing needs while keeping your financing costs as low as possible.

In addition to offering the SBA 504 loan, in 1999, TMC Financing began a workforce development program to support San Francisco Bay Area microenterprises with capital coupled with business coaching services. It became its own non-profit entity called Working Solutions in 2004.

Working Solutions takes the innovative approach of offering hands-on technical guidance that small business owners (including tech companies) need to start and grow their businesses. The financing available can be anywhere from $5,000-$50,000 per company. This program has helped many small businesses in the Bay Area, and can be used for financing if your tech startup is just getting up on its feet.

One such business that has benefited from a microloan through the Working Solutions program is Veg Hub. The Veg Hub is committed to educating people about the health benefits of vegan foods, and making it accessible to everyone in the Bay Area and beyond. The general manager, Chef Chew, has been a vegan food inventor for more than 10 years. He has traveled throughout the country spreading the news of health with fun and creative classes. He has also been featured on multiple TED Talks. This is just one example of how a microloan can help startups in the Bay Area.

You can find out more about this financing option for your tech company from one of TMC Financing’s 504 loan experts. TMC is an SBA Premier Certified Lender, and has funded projects worth more than $9 billion across California and Nevada, resulting in the creation of an estimated 60,000 jobs. With over 35 years of experience, TMC can help you find the financing that is best for your tech company whether located in the Bay Area or Oakland. They can also guide you through the 504 loan process. Contact TMC Financing today.

Kurt Chambliss

Kurt Chambliss

Kurt Chambliss is Executive Vice President of Sales and Marketing for TMC Financing, focused on serving small business clients throughout San Francisco’s East Bay. With over 16 years of SBA 504 lending industry experience, Kurt seamlessly guides clients through the loan process helping to secure SBA financing for small businesses and introducing them to the best first mortgage lenders that meet the clients’ needs, supporting them through the entire process. Kurt acts as an advocate for small business owners, and is passionate about helping small businesses grow and succeed.
Kurt Chambliss