TMC Financing Ends Fiscal Year 2020 as the No. 1 SBA 504 Lender in the Western Region
TMC Financing is pleased to announce that TMC is ranked the No. 1 SBA 504 lender in the Western Region of the nation. Of the more than 200 CDCs in the U.S., TMC is ranked No. 2. and provided $305 million for nearly 300 small and mid-sized businesses. Because the SBA portion of each project represents only 40% of the financing, this translates into approximately $800 million in total project financing for successful, growing businesses that anticipate adding approximately 2,143 new jobs in the next two years.
SBA 504 loans enable business owners to purchase, renovate, construct or refinance commercial real estate with only a 10 percent down payment, and below-market, fixed-rate long-term financing. SBA 504 loans are structured with a first mortgage from a conventional lender, typically representing 50 percent of the total project, and a second mortgage from a CDC such as TMC Financing, backed by the SBA. Today’s SBA interest rate is a remarkably low 2.55% fixed for 25 years.
In addition to helping business owners finance real estate via the SBA 504 Program, COVID-19 prompted TMC to help small businesses with new programs. As soon as Congress rolled out the Paycheck Protection Program (PPP), TMC designated a team of dedicated staff members who worked around the clock to help as many small businesses as possible. When the program ended, TMC had funded more than $105 million in PPP loans for 1,120 small businesses. With an average loan size of $94,000, it is likely that the majority of these loans will become grants.
According to Angelique Ronalda, a recipient of a PPP loan administered by TMC, “I cannot overstate that this is a lifesaver for my business, and it means the world to me that everyone I worked with at TMC was so dedicated to serving businesses like mine.”
Furthermore, the County of San Joaquin utilized their CARES Act funding to create a grant program for small businesses impacted by the coronavirus. TMC administered the program on behalf of the county and helped provide a total of $6,088,972 in grants for 644 small businesses.
TMC Financing’s sister company, TMC Community Capital (TMC CC), also played a vital role in helping local businesses in need. TMC Community Capital provides fast and affordable online financing, for women-owned, low-income and under-resourced small businesses in California. However when COVID-19 hit, they recognized that the most vulnerable small businesses were in need of grants, not loans. TMC Financing and Signature Bank provided a total of $750,000 to launch the Small Business, Big Heart Grant Program. By means of an equitable lottery system, TMC CC awarded grants up to $10,000 to 184 community-nominated businesses in San Francisco, Oakland and Los Angeles.
“With so many small businesses in desperate need of help, our focus at TMC Financing and TMC Community Capital was to find ways to do more to help small businesses on their road to recovery,” said Barbara Morrison, founder and president of both companies. “To witness the resilience of our local entrepreneurs has been truly inspiring. This was a year unlike any other, but I am extremely proud of the impact we were able to make.”