TMC Financing expands into Hawaii to help small businesses recover from Lahaina Fire

Oakland-based TMC Financing has received approval from the U.S. Small Business Administration to expand into Hawaii, aiming to assist small business owners in accessing SBA 504 loans, commonly utilized for purchasing real estate for business use. TMC’s founder, Barbara Morrison, recognized the potential for growth in Hawaii, especially after witnessing how the SBA’s 504 loan program could aid businesses affected by events like the Lahaina Fire.

The SBA’s 504 program offers up to 90% financing for commercial real estate transactions and permits cash-out refinancing when funds are reinvested into the business. Borrowers must collaborate with certified development companies (CDCs) to secure these loans. While California has 18 CDCs, Hawaii currently lists only one, the HEDCO Local Development Corp.

TMC aims to establish a local presence in Hawaii, likely in Honolulu, to better serve the market. Morrison highlights the benefits of competition in the CDC sector, foreseeing opportunities to support hotel owners and other businesses seeking 504 financing. Refinancing has become increasingly prevalent in the 504 landscape, comprising 8% of loans this year, with TMC’s share slightly higher.

As the leading SBA 504 lender in the nation, TMC operates as a nonprofit organization, extending its services to small businesses across California, Nevada, Arizona, Oregon, and now Hawaii. Morrison emphasizes the advantages of business owners owning their commercial real estate, including asset-building for retirement and increased control over their business’s future.