The Bay Area ‘weathered the storm.’ Now a key SBA lender sees strong borrowers and a bright 2024

Barbara Morrison, Founder and President TMC Financing

In an article by Mark Calvey, a Senior Reporter at the San Francisco Business Times, Oakland’s TMC Financing CEO, Barbara Morrison, shared her optimism regarding the economic recovery and her company’s performance during the pandemic. She expressed the belief that a recession may have been avoided and that interest rates are expected to decrease in the coming year.

During the early days of the pandemic in March 2020, TMC Financing faced challenges as business owners were canceling deals and fearing permanent closures. However, with the arrival of federal relief programs like the Paycheck Protection Program, the situation improved significantly.

As of today, TMC Financing’s loan portfolio is in a much healthier state, with only one SBA 504 loan more than 90 days overdue out of a total of over 2,400 loans exceeding $2 billion. This success is attributed to strong underwriting and the fact that these loans are backed by real estate, motivating borrowers to stay current on payments.

TMC Financing specializes in the SBA’s 504 loan program, which assists business owners in acquiring commercial real estate and equipment. This program allows borrowers to have more control over their businesses’ futures and build wealth through equity in real estate instead of lease payments. In 2023, TMC Financing was recognized as the nation’s top SBA 504 lender, assisting 461 businesses in securing over $1.7 billion in project financing, expected to create around 5,000 jobs.

TMC’s success in 2023 was also attributed, in part, to the addition of five professionals to its team, bringing its workforce to approximately 90 employees. The company primarily works with small businesses, including hotels, restaurateurs, doctors, dentists, contractors, engineers, plumbers, painters, electricians, concrete providers, architects, daycare, and assisted-living facilities.

One notable project that TMC Financing helped finance was the Hotel Castro, a $7.5 million project in San Francisco, which faced challenges in securing conventional bank loans but eventually opened its doors in 2022. The general partner of Hotel Castro expressed optimism about the recovery of San Francisco’s tourism industry and the company’s growth prospects.