Every year TMC staff and members of our Board of Directors enjoy visiting a selection of our San Francisco-based clients on a fun-filled trolley tour. Each year TMC assists hundreds of businesses with obtaining SBA real estate financing. The annual trolley tour provides an opportunity for our staff and board members to see first-hand the positive impact of SBA financing for these businesses.
In a recent article published by Chris Hurn in his blog 504blog, he brings up the issue many business owners have about their buildings: to rent or to own? Mr. Hurn re-posted an article by Jay Goltz who discussed his decision to own over rent his building and how effective an SBA 504 loan was to his business. Chris Hurn’s post begins below:
TMC is pleased to highlight a few of our funded projects. These clients all received SBA 504 financing through TMC to grow their businesses.
• Smart Business Services, Inc.
Newark, CA
Type of Business: Trade magazine
• Study Abroad Italy, Inc.
Sebastopol, CA
Type of Business: Education, study abroad
Bay Area’s Favorite Dance School Opens New Oakland Studio With SBA Loan From TMC
TMC Finances $378,000 SBA 504 Real Estate Loan For Kids ‘N Dance
TMC, a leading Certified Development Company providing SBA real estate loans in California and Nevada, recently announced the closing of a $378,000 SBA loan for Kids ‘N Dance, an East Bay based children’s dance school. SBA financing was used to purchase a 3,250 square-foot building located at 3840 MacArthur Boulevard in Oakland, allowing owner Kris Mueller to open a second studio with retail space in the heart of Oakland’s Laurel District. The financing was facilitated by TMC and approved under SBA’s woman-owned public policy goal.
As published in the San Francisco Business Times, Friday, July 30th, 2010.
Own the Business? Own the Building
SBA financing for small AND large building purchases.
By Barbara Morrison, TMC
Did you know that SBA financing isn’t just for small buildings? There is no limit to the size of the building purchase with SBA 504 financing. Under a new, energy-related program recently announced by SBA, the 504 program is able to finance significantly larger projects, such as the $22.2 million purchase below. Any building purchase resulting in at least at 10% reduction in energy usage may qualify for increased SBA 504 loan funds. Businesses which will generate renewable energy in the new building may also qualify. Companies with substantial space needs can now reap the benefits of SBA 504 financing.
Excerpts below from an article published in the Las Vegas Business Press, 6/9/2010. To read the complete article, please visit the Las Vegas Business Press website.
BY JOHN G. EDWARDS
Mary Lou Soto and her sister, Cindy, worried about their personal safety when they worked after dark at the old warehouse. Then, despite the worst Southern Nevada recession since the 1930s, the owners of Artistic Touch secured financing through a Small Business Administration program to buy a new location in February. They purchased a 5,000-square-foot warehouse at 2543 E. Washburn Road in North Las Vegas for $443,000, and their engraving equipment now whines into the night.
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Artistic Touch is one among a growing number of local small businesses that are getting help from government programs. The federal, state and local governments are helping small-business owners get loans, learn better management techniques, obtain government contracts, expand into export markets and cut costs. “We’re getting slammed” with new applicants, said Ron Horn, director of the Procurement Outreach Program, a division of the Nevada Commission on Economic Development. “They don’t have people knocking on their doors anymore,” Horn said. As a result, Horn said more businesses are coming to his division and asking for guidance on how to bid for prime contracts or as subcontracts on government projects.
Want to buy commercial real estate to use for a business? Virtually the only loans available come with guarantees from the Small Business Administration, said Ann Santiago, vice president and regional loan officer for TMC Development. SBA 7 (a) loans are generally easier to get than conventional loans, because the government increased the guarantees for lenders and set aside fees for borrowers. “It’s a great product in bad times,” said former banker Mark Phillips of Phillips Loan Support Services, a consultant to Nevada Commerce Bank. John Scott, district director for the SBA in Nevada, figures the agency’s programs and federal stimulus law enhancements in the programs have softened the economic crash for small businesses in the Silver State. He can point to several examples of businesses that got a financial boost through the SBA, including the Soto sisters’ Artistic Touch.
