New Regulations for SBA 504 Loans Make it Easier for Nevada Business Owners to Qualify

April 24th, 2014

New Regulations for SBA 504 Loans Make it Easier for Nevada Business Owners to Qualify

As published in Nevada Business Magazine:

This week the U.S. Small Business Administration made effective two major changes for qualification of SBA 504 loans. The changes will make it easier for businesses to qualify for SBA loans and encourage business growth and job creation.

Ann Santiago, SVP Business Development of TMC Financing Las Vegas

Effective April 21, the SBA has eliminated several requirements for its 504 business loan program. The changes include:

  • Elimination of the personal resource test, which benefits borrowers by adding flexibility in the management of their allocation of personal resources to the small business;
  • Elimination of the nine-month rule for 504 eligible project expenses, which allows businesses a longer timeframe in which to organize and initiate their small business project.

“By eliminating the 9-month rule for expenditures, businesses that have previous expenditures for building improvements more than nine months from the time of the loan can apply them towards their down payment,” said Ann Santiago, senior vice president for TMC Financing in Las Vegas. TMC Financing is the largest SBA 504 lender in Clark County, Nevada. As of the second quarter of fiscal year 2014, TMC has provided over $39 million (total project cost) in SBA 504 loans in Clark County alone. “And the elimination of the personal resource test means that business owners no longer need to pass a personal resource test that could restrict some business owners from participating in the SBA 504 program. Many more business owners are now eligible for SBA financing.”

For full text of the SBA’s recently published Final Rule on the Federal Register regarding the changes, visit:

About SBA 504 Loans
The U. S. Small Business Administration (SBA) 504 Program offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital, which can be used to further grow the business and create new jobs. The April SBA 504 interest rate is 5.18% fully fixed for 20 years. The typical loan structure for an SBA 504 loan comes from a first mortgage with a conventional lender and a second mortgage from a certified development company (CDC).

About TMC Financing
TMC Financing provides Small Business Administration (SBA) 504 real estate financing and is the leading Certified Development Company (CDC) in Northern California and Southern Nevada. During the past 30 years, TMC has provided over $7.5 billion in SBA 504 financing for more than 4,500 businesses. This financing has resulted in the creation of over 33,000 jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade. TMC’s experienced team works directly with borrowers, lenders and real estate brokers to tailor financing packages that meet SBA program guidelines and the borrower’s credit capacity. For more information, visit

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