For the first time in its history, the U.S. Small Business Administration ran out of money to lend for real estate and equipment acquisitions.
The funds in the 504 program were exhausted as of Sept. 7 for the 2020–2021 fiscal year, the SBA reported. Funding was restored at the beginning of the new fiscal year Oct. 1.
Despite the seemingly short time span, the three-week hiccup proved challenging for top loan provider TMC Financing, out of Oakland.
“We were able to work through it, but we hope it doesn’t happen again,” said TMC Financing founder and President Barbara Morrison, who’s also a Sonoma resident. “It was a blow to the program.”
Morrison’s $10 billion East Bay finance company has assisted hundreds of startups in California, Nevada and Arizona get off their feet due to the efforts of her 74 employees. Last year, TMC Financing obliterated its $300 million goal by securing $400 million in 504 loans, Morrison told the Business Journal.