When your successful small business is ready to take that next step, expanding your assets can be a great way to move forward. After labor, rent and other occupancy costs are a small businesses’ biggest expense. Owning your own building or other business facilities can make all the difference in stabilizing your small business finances.
Our friends at TMC Financing can help. You can write your next rent check to yourself and begin building equity for your retirement buy owning your building with as little as 10 percent down through the U.S. Small Business Administration 504 loan program, versus the 25-40 percent down payment required with a conventional commercial mortgage.
Founded in 1981, TMC has grown to become the largest provider of SBA 504 commercial real estate loans in Northern California. The SBA 504 loan program allows small business owners to buy, build, or renovate business property at very attractive terms and below-market, long-term, fixed interest rates.
The program can be used for commercial real estate and other fixed assets, such as equipment or furnishings, and there are no limits on the total project costs. Tenant improvements, soft costs and closing costs can be included in the financing.
A typical SBA 504 project includes a down payment of only 10 percent from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by TMC.
The program is a perfect complement to PCV’s mission, and is designed to help small business owners put down roots in their communities and create good jobs. Most for-profit small businesses qualify, as long as they plan to occupy at least 51 percent of the building.
TMC has helped nearly 5,000 business owners fund projects totaling more than $8 billion across California and Nevada, creating or retaining an estimated 48,500 jobs.