San Francisco firm takes on staff of closed SBA lender in Folsom
A San Francisco-based provider of commercial real estate financing said today that it is entering the Sacramento market, taking on former employees of a recently closed lender in Folsom.
Azevedo is a former senior vice president of Folsom-based EDF REsource Capital, which closed its doors last month after the SBA revoked its authority to issue SBA-guaranteed loans. The agency also said it would seize the Folsom company’s loan portfolio.
TMC also announced the hiring of four other former REsource Capital employees and said it will open a new branch office at 3300 Douglas Blvd., in Roseville.
” … TMC is making a big commitment by also hiring operations staff from REsource, which means that there will be a lot of consistencies in our service delivery,” Azevedo said. “TMC is very innovative in their approach to processing 504 loans.”
SBA’s 504 loan program is a key component of financing small- and medium-size businesses, by providing them with long-term capital to purchase or improve fixed assets or real estate. It has long been regarded as a significant component of economic development in communities nationwide.
REsource Capital, established in 1978, specialized in below-market, fixed-rate financing for commercial and industrial projects via the 504 program. Targeting California and parts of Nevada and Oregon, it was regarded as one of the nation’s top 504 lenders.
The SBA claimed last month, however, that REsource Capital had become insolvent due to millions of dollars in bad loans.
Over 30 years, TMC says it has provided about $7.2 billion in SBA 504 financing for more than 4,200 businesses throughout California and Nevada.