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SF Small Business Week. Celebrate Small Business.

TMC Financing: “Owning Your Building Means No More Rising Rent”

Meet Our Sponsors!

We’ve asked some of our #SFSBW2018 sponsors to share their insights, and how they help small business flourish in San Francisco. Today we sit down with Barbara Morrison, CEO of TMC Financing.

TMC Financing Small Business Financing San Francisco

What is TMC Financing’s Mission?

TMC Financing’s team of experts act as a link between the public and private sectors. We promote economic development through job creation and business expansion by providing funding for small and medium sized businesses in California and Nevada.

How does your organization support and engage the small business community?

We simplify the loan approval process for small business owners. Our team coordinates the entire process from application through closing, funding and servicing, making it seamless for small business owners, their banker and broker.

What tools and resources has your organization created to help small businesses tap into new opportunities to reach new customers, increase their revenue, and grow their business?

SBA 504 loans are specifically designed to help businesses buy commercial real estate and other fixed assets with below-market, long-term, fixed interest rates.

What are the trends you see when you think about the small business marketplace, and how will these trends shape the future of small business?

If the small business lending climate today were weather, the forecast would be sunny and mild. Even though small business owners thinking about securing financing this year may not be too happy as they watch interest rates rising slightly, that’s better news than it might seem to be. The rising rates are a sign of a healthy economy, and nothing is better for small business, or small business financing, than that.

The 504 loan provides flexible and cost-effective financing options designed to help small businesses grow. It merits careful consideration when you are looking for a commercial loan.

You can find out more about the 504 loan from one of TMC Financing’s 504 loan experts. TMC is an SBA Premier Certified Lender and a high-volume loan provider. With over 35 years of experience, TMC can help you find the financing that is best for you and guide you through the 504 loan process.

TMC Financing Occupancy Costs highest after labor small business

Can you share one brief story about how your TMC Financing is helping San Francisco businesses thrive?

In October 2013, Blazing Saddles purchased a building at 721 Beach Street in San Francisco. The 10,840 SF building was purchased with an SBA 504 loan from TMC Financing. TMC provided $2.4 million of the project’s $6.06 million total cost. In 2017, the owners were awarded Small Business Persons of the year award!

Blazing Saddles has had a tremendous impact on the tourism industry as well as the local community. The company started off with two employees (Jeff and Helena) and has since grown to a workforce of nearly 200! Jeff has reported that up to 10,000 people on a sunny summer day ride from Fisherman’s Wharf across the Golden Gate bridge to Sausalito, a 90-minute trip for the average rider.

Jeff and Helena have created an iconic business that combines fitness and tourism, making the sights of San Francisco accessible to everyone. When the whole TMC team visited Blazing Saddles and met Jeff and Helena last year, we learned about their business, its past and future. It was so rewarding to see one of our clients in action and understand the impact an SBA 504 loan can make in the growth and success of small business

What words of advice or wisdom would you like to share with small business owners?

Other than labor, occupancy costs are a business owner’s largest expense. Owning your own building is the best way to stabilize those costs and put you in control. In many communities, lease rates have increased 30 percent, 50 percent or even 75 percent over the past five years.

Owning your building means no more rising rent. You can also stop worrying about your landlord selling and being forced to relocate.

In addition to locking in your occupancy costs long term, owning your building will give you tax benefits, appreciation and a retirement option.

In fact, many of our borrowers have told us that owning their own building was the best retirement they never planned. The appreciation on the building when it’s sold can make a nice nest egg.

Some owners choose to take title to the building in their own names, then lease it back to their business. When they retire and sell the business, they still have lease income coming in. Either way, it’s a great way to build equity for the future or to leave a legacy.

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