Opening a Restoration Service with a 504 Loan

The restoration industry has been in high demand after the series of natural disasters that the United States experienced in 2017, with weather events in the South and wildfires in the West. That market is going to continue as the number of natural disasters increase and cleanup becomes more complex. If you own a restoration service, this may be a good time for you to grow your business. The Small Business Administration (SBA) 504 loan can help you with affordable and accessible credit to use for real estate and equipment expansion.  A Certified Development Company (CDC), like TMC Financing can help walk you through this process.

Restoration Services Have Lots of Options for Expansion

One of the best ways for a restoration service owner to expand is by taking over tasks that had been parceled out to subcontractors. This might include salvage operations, light construction and electrical work (perhaps making upgrades along with repair work), storm cleanup and debris removal, and safety inspection and preventative measures. After all, a malfunctioning dishwasher or clogged clothes dryer can do damage to a house that rivals a hurricane or wildfire.

Another strategy is to open a new office in another location—complete with staff and equipment—to expand your reach and availability. Often the key to gaining new business is the ability to respond at a moment’s notice. That will also put you in good standing with insurance companies, which generate a lot of business

The 504 Loan Meets the Financing Needs of Successful Restoration Services

The 504 loan can be used to buy land or buildings, construct a new building or renovate an existing structure. These are the components you need for expansion, and they offer the additional financial security of property ownership—buying the premises you now rent is a move that will save you time and money in the long run. The 504 loan can also help you purchase equipment with a long service life and refinance conventional commercial loans.

The 504 loan is administered by a Certified Development Company (CDC) such as TMC Financing, and loans are granted in conjunction with a conventional lender that provides 50% of the total project cost. Your CDC facilitates the SBA loan for up to 40% of the cost, or $5 million ($5.5 million if the project includes energy-efficiency measures), at a fixed, below-market rate. You provide 10% of the project cost as a down payment. The 504 loan has terms of 10, 20 or 25 years, and it is fully amortized (so there are no balloon payments). The 504 loan is available to franchisees as well as independent business owners.

TMC Financing Client Successes

Servpro of Sorrento Valley/University City, CA is a 24-hour emergency service and a trusted leader in the restoration industry. They take care of fire, water and storm damage as well as mold remediation in residential and commercial properties. They are part of the Servpro franchise, which has 1,700 offices nationwide.

Advanced Pro Restoration is located in Las Vegas, NV and serves all of Southern Nevada. It provides water and damage restoration and mold remediation. The couple who own the business started it when there were no other businesses of the kind in the area, which contributed to their success.

Houston Fire Systems in San Joaquin, CA protects homes and businesses from fires. They specialize in fire protection services and offer fire sprinkler design, installation, testing, inspections and repair. They partner with customers to ensure that their homes and businesses are fully protected.

You can find out more about securing a 504 loan to expand your restoration business 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 you and guide you through the 504 loan process. Contact TMC Financing today.


Barbara Morrison, a local small business advocate and civic leader, founded her first company TMC Financing in 1981. TMC is a Certified Development Company that provides commercial real estate financing to small business owners via the SBA 504 Loan Program. TMC consistently ranks among the top certified development companies nationwide, and has funded projects worth more than $9 billion across California and Nevada. Nearly 5,000 small businesses have benefitted from this financing, resulting in the creation of an estimated 50,000 jobs. TMC is also the No.1 SBA 504 hotel lender in the United States. Barbara is also the founder of Working Solutions, a Bay Area microlender whose mission is to provide micro entrepreneurs, particularly low-income individuals, women and minorities, with the access to capital and resources they need to start a successful business.
Barbara Morrison