About this programme
TMC Financing is a Certified Development Company (CDC), a nonprofit certified and regulated by the U.S. Small Business Administration (SBA) to facilitate SBA 504 loans and other SBA programs from application through closing. There are 230 CDCs nationwide, each covering a specific geographic area; TMC holds the SBA's 'premier' status, meaning it can make credit decisions on the SBA's behalf and expedite approval, getting loans approved in as few as 30 days.
The SBA 504 program lets business owners buy commercial real estate and other fixed assets at below-market, fixed rates, fully amortized over 25 years with no balloon payment. Beyond real estate purchases, 504 loans can fund new construction, facility upgrades, equipment with a useful life of 10 years or more, and conversions to energy-efficient facilities.
TMC serves Arizona, California, Hawaii, Nevada, and Oregon, and reports having financed projects ranging from $500,000 to $44 million.
How it works
The SBA 504 loan is structured in three parts: a conventional lender provides the first mortgage, covering about 50% of the total project cost; the CDC, such as TMC, provides a second mortgage backed by the SBA, generally 40% of the project cost, at a below-market fixed rate fully amortized over up to 25 years; and the borrower provides a down payment of 10% (15% for single-purpose facilities or start-up businesses).
In a $5 million example project, that breaks down as a $2,500,000 conventional first mortgage (50%), a $2,000,000 SBA 504 second mortgage (40%), and a $500,000 borrower down payment (10%).
The maximum SBA debenture per project is $5 million, or $5.5 million for manufacturers or energy-efficient projects. There is no cap on the first mortgage or total project size.
Total closing fees run to roughly 2.65% of the loan amount, plus a $2,500 attorney closing fee; these are financed within the loan proceeds rather than paid out of pocket.
A 504 loan differs from an SBA 7(a) loan in that 504 financing carries a low, fixed rate but cannot be used for working capital, while a 7(a) loan can fund working capital but usually carries a variable, less predictable rate.
Who can apply
Most for-profit businesses in the United States qualify. For existing real estate, the business must occupy at least 51% of the property within a year of funding; for new construction, at least 60%.
Size standards: the business's tangible net worth cannot exceed $20 million, and after-tax profit for the last two years cannot exceed $6.5 million, or the business may qualify on employee count instead. The owner's personal net worth is not a factor.
The business must be located in Arizona, California, Hawaii, Nevada, or Oregon to work with TMC specifically.
How to apply
- Submit a pre-qualification application online through TMC's site; this starts a free pre-qualification analysis, with a turnaround of 18 to 48 hours.
- TMC requests three years of personal and business tax returns, a personal financial statement, and interim financials to confirm eligibility, borrowing capacity, and down payment before you apply for the SBA 504 loan itself.
- A pre-qualification letter can be used to strengthen an offer on a property, even before one is found.
- Closing typically takes about 60 days from application, though some loans close in under 30 days; TMC notes timing varies loan to loan.
Documents you’ll typically need
- Three years of personal and business tax returns
- Personal financial statement
- Interim financials
Frequently asked
How much can I borrow with an SBA 504 loan?
The maximum SBA debenture is $5 million per project, or $5.5 million for manufacturers or energy-efficient projects, but there is no limit on the first mortgage or total project size. TMC has financed projects from $500,000 to $44 million.
How much down payment does an SBA 504 loan need?
As little as 10% down for a standard project, or 15% for a single-purpose facility, hospitality project, or start-up business.
What can the loan be used for?
Purchasing commercial real estate, new construction, facility upgrades, equipment with a 10-year-plus useful life, energy-efficiency conversions, and refinancing existing commercial mortgage debt.
How fast can I close?
Pre-qualification takes 18 to 48 hours. Closing typically takes about 60 days, though some loans close in under 30 days; TMC's premier CDC status can speed SBA approval to as few as 30 days.
What fees should I expect?
Roughly 2.65% of the loan amount in closing fees plus a $2,500 attorney closing fee, both financed into the loan rather than paid upfront.
Is TMC Financing available outside Oregon?
Yes. TMC operates in Arizona, California, Hawaii, Nevada, and Oregon.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.