The SBA 504 loan program continues to stand out as a powerful, sustainable financing tool for small businesses — and now it’s earning renewed recognition at the federal level.
In a recent article, the U.S. Small Business Administration (SBA) Administrator Kelly Loeffler, reinforced the importance of the SBA 504 commercial real estate loan program and the agency’s commitment to making the SBA 504 loan program more accessible to small business owners. One of the most significant points in the article was the program’s zero-subsidy structure.
The SBA 504 Program is a Zero-Subsidy Initiative
The SBA 504 loan program operates under a zero-subsidy model, meaning it does not rely on ongoing taxpayer funding to function. Instead, the program is fully sustained by fees paid by borrowers, lenders, and Certified Development Companies (CDCs) like TMC Financing.
This structure is significant because it ensures that the SBA 504 loan program remains financially self-sustaining, resilient to changes in political or economic environments, and consistently available to small business owners looking to invest in their future.
Whether during downturns or periods of growth, the program provides reliable, fixed-rate financing for long-term business success.
“The structure is what makes the 504 program so powerful. It continues to deliver long-term, fixed-rate financing to small businesses, even during uncertain times,” said Barbara Morrison, CEO of TMC Financing.
Barbara Morrison Discusses the Strength of the SBA 504 Program
Barbara Morrison reflects on the resilience and long-term success of the SBA 504 program, drawing on her 40+ years of experience since founding TMC Financing. She notes that she continues to receive questions about the status of the SBA 504 program — what’s new, what’s changing, and whether it will remain the same.
Barbara’s message is clear: the SBA 504 program is still going strong and continues to be a reliable option for small businesses.
According to Barbara, the program’s self-sustaining structure has allowed it to weather economic cycles and remain a critical financing tool — particularly for the manufacturing sector. She also highlights how the program adapts to meet the needs of small businesses.
“The 504 loan continues to deliver long-term, fixed-rate financing to small businesses, even during uncertain times.” — Barbara Morrison, CEO, TMC Financing
Why the SBA 504 Loan Program Remains So Effective
The SBA 504 loan program is specifically designed to help small business owners purchase, build, or refinance owner-occupied commercial real estate and long-term equipment. With its low down payments, below-market interest rates, and accessibility, it remains one of the most effective commercial financing solutions available.
About TMC Financing.
Founded in 1981, TMC Financing is the leading provider of SBA 504 commercial real estate loans in the nation, funding projects worth over $14 billion across Arizona, California, Nevada, Hawaii, and Oregon. Over 7,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs.
Ready to explore how the SBA 504 loan can help your business thrive? Contact TMC Financing today.