Urban Manufacturing Increases in Bay Area
TMC Financing Helps Manufacturing Businesses Expand in Thriving Industrial Market
The Bay Area is most commonly known as a hub for technological innovation. However, these advancements have also caused Northern California manufacturing industries to flourish. The manufacturing sector is being driven by information exchange, customized automation and digitization. As a result, Bay Area collaborators are working to create space for a variety of manufacturing businesses including apparel, textiles and food and beverage.
One local initiative, Bay Area Urban Manufacturing (BAUM), created in 2016, launched a three-year project to create a regional manufacturing support system. The BAUM project aims to educate the growing manufacturing community in areas such as land-use policy and job training. This specialized education will increase the number of middle-income jobs and create a more equitable and diverse regional economy. Founding cities include San Francisco, Oakland, Fremont and San Jose, totaling 26 Bay Area cities.
A full manufacturing report published by Baum indicated:
- The Bay Area employs more than 340,000 manufacturing workers (10% of the workforce)
- 7,500 manufacturing companies operate in the Bay Area
- Manufacturing creates higher paying jobs & increases economic diversity (160,00 manufacturing jobs in 26 cities)
It is exciting to learn that so many manufacturing businesses are thriving and creating opportunities for employees in a variety of industries. However, it is important to remember managing the costs of manufacturing operation can be one of the biggest challenges for a business owner.
SBA 504 Real Estate Loans
The Small Business Administration (SBA) 504 loan program is an accessible and affordable financing solution to help businesses continue to grow. The SBA 504 loan allows small and medium sized business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the purchase or construction of commercial real estate in addition to other fixed assets include equipment and machinery. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability.
Manufacturing Projects with TMC Financing
TMC Financing is a leading Certified Development Company (CDC) providing Small Business Administration (SBA) 504 real estate financing in California and Nevada. During the past 35 years, TMC has provided over $9 billion in financing for more than 5,000 businesses including a significant number of manufacturing companies. During the past three years, TMC has provided financing to over 50 manufacturing businesses. These businesses are projected to create over 700 jobs.
SBA 504 loans are a great solution for growing manufacturers looking to stabilize their occupancy costs. Companies can achieve increased capacity and production by buying better equipment or purchasing a space better suited for their needs. 504 loans are designed specifically for these scenarios, enabling small business owners to get accessible and affordable funding with as little as 10% down. If you are a manufacturer looking to expand your business, contact a TMC Financing loan expert to find out more.