About TMC Financing
TMC Financing is an Oakland, California-based SBA lender with a dual designation that sets it apart from virtually every other lender in the country: it holds both SBA Preferred Lender Program (PLP) status for SBA 7(a) loans and Certified Development Company (CDC) status for SBA 504 loans. This rare combination makes TMC Financing uniquely equipped for business acquisitions that include owner-occupied commercial real estate — the most complex and often most advantageous deal structures available to small business buyers.
As one of the largest CDCs in the nation, TMC Financing has funded hundreds of millions of dollars in SBA 504 projects across the Western United States. Their in-house teams handle both the 7(a) and 504 components simultaneously, eliminating the coordination friction that occurs when two separate institutions are involved. The result is a smoother, more efficient process for buyers pursuing a 7(a)+504 combo structure.
TMC Financing serves California, Nevada, Arizona, Oregon, Washington, and Hawaii. Beyond their technical capabilities, they maintain strong minority-business programs and veteran lending initiatives that reflect a genuine commitment to inclusive capital access. For buyers targeting a West Coast acquisition that involves real estate — whether it's a manufacturing facility, a medical office building, a restaurant with real property, or an industrial warehouse — TMC Financing belongs at the top of any short list.
SBA Loan Products
TMC Financing offers three primary SBA lending structures. First, the SBA 7(a) Standard loan (up to $5,000,000) covers business acquisitions, goodwill, working capital, equipment, and leasehold improvements at variable rates currently ranging 10.00–10.25%. Second, the SBA 504 loan (up to $5,000,000 per project) finances major fixed assets — primarily owner-occupied commercial real estate and large equipment — at a long-term below-market fixed rate through the CDC structure. Third, and most powerful, is the 7(a)+504 Combo: TMC structures the 7(a) for business goodwill and working capital while simultaneously structuring the 504 for the real estate component, enabling buyers to finance up to 90% of the total project cost while optimizing interest rates across the two instruments.
Current Rates & Fees (2025)
TMC Financing's SBA 7(a) rates currently range from 10.00% to 10.25% based on WSJ Prime Rate of 7.50% plus a spread of 2.50–2.75%. This is at the competitive floor for SBA 7(a) lending. The SBA 504 component carries a separate, fixed below-market rate set monthly by the SBA — typically in the 6.00–7.00% range for the CDC debenture portion as of mid-2025. When blended across a 7(a)+504 combo structure, the effective cost of capital is often lower than a straight 7(a) loan on the same deal.
| Scenario | Rate | Notes |
|---|---|---|
| Best Case (SBA Market) | 10.00% | Standard 7(a) PLP lender, strong credit |
| TMC Financing 7(a) – Typical | 10.00 – 10.25% | Prime + 2.50–2.75%, variable |
| SBA Maximum 7(a) | 10.50% | Prime + 3.00% (SBA cap for loans over $50K) |
Eligibility Requirements
TMC Financing requires a minimum personal credit score of 640 for all SBA loan applicants. The business must be located in California, Nevada, Arizona, Oregon, Washington, or Hawaii, and the loan must be between $250,000 and $5,000,000. For 504 loans, the project must involve a major fixed asset — most commonly owner-occupied commercial real estate that the business will occupy for at least 51% of total square footage.
For business acquisitions, borrowers should anticipate providing three years of seller tax returns, business financial statements, a business valuation or appraisal, a purchase agreement, and personal financial statements. A 10% buyer injection (equity) is the SBA minimum, though 15–20% is more typical for acquisition deals. Real estate deals within a 504 structure may require a property appraisal and environmental review. TMC Financing's lending team works closely with borrowers to identify the optimal structure before the application is filed.
Pros & Cons
Pros
- ✔ Rare dual PLP + CDC designation enables in-house 7(a)+504 combo deals that most lenders cannot execute alone.
- ✔ Competitive rates starting at 10.00% and one of the nation's largest and most experienced SBA 504 programs.
- ✔ Flexible 640 credit minimum with real support for minority-owned and veteran-owned businesses seeking West Coast acquisitions.
- ✔ Deep expertise in manufacturing, commercial real estate, and owner-occupied property transactions in the Western US market.
Cons
- ✘ Geographic focus on six Western states means buyers outside CA/NV/AZ/OR/WA/HI may not have access to the full program.
- ✘ Processing times of 35–55 days are longer than purely 7(a) PLP lenders due to the added complexity of 504 underwriting.
- ✘ The 504 component adds structural complexity and closing costs (CDC fees, debenture fees) that straight 7(a) deals avoid.
- ✘ Best value for deals involving real estate — buyers seeking goodwill-only acquisitions may find simpler PLP options more efficient.
How to Apply
TMC Financing applications begin with an online inquiry at tmcfinancing.com. Because TMC handles both 7(a) and 504 products, the first step is typically a deal-structure consultation where a loan officer helps you determine whether a straight 7(a), a straight 504, or a 7(a)+504 combo is optimal for your specific acquisition.
For acquisition deals, the key documents to prepare in advance include: three years of seller business tax returns and financial statements, a current business valuation or third-party appraisal, a signed or draft purchase agreement or letter of intent, personal tax returns and financial statements for all owners with 20%+ equity, and — for real estate deals — a property appraisal and environmental review results. Having these organized before your first lender meeting significantly accelerates the process. Expect 35–55 days to close once a complete application is submitted, with the timeline varying based on real estate complexity.
Apply at TMC Financing →Frequently Asked Questions
What is the difference between an SBA 7(a) and SBA 504 loan?
An SBA 7(a) loan is the most flexible SBA product, usable for business acquisitions, working capital, equipment, and real estate, with variable rates up to $5 million. An SBA 504 loan is specifically designed for major fixed assets — primarily owner-occupied commercial real estate and large equipment — and offers a long-term fixed interest rate on the CDC (504) portion. The 504 loan is structured with a first-mortgage lender (bank), a CDC (like TMC Financing), and the borrower. The 504 portion carries a below-market fixed rate, making it attractive when real estate is a major component of the deal.
Can TMC Financing combine a 7(a) and 504 loan?
Yes — and this is TMC Financing's defining competitive advantage. Because TMC Financing holds both SBA Preferred Lender Program (PLP) status for 7(a) loans and Certified Development Company (CDC) status for 504 loans, they can structure and execute both components of a 7(a)+504 combo deal in-house. This combination allows a buyer to finance goodwill and working capital through a 7(a) while simultaneously financing owner-occupied commercial real estate through a 504 at a lower fixed rate, potentially covering up to 90% of the total project cost.
What states does TMC Financing serve?
TMC Financing primarily serves California, Nevada, Arizona, Oregon, Washington, and Hawaii. As one of the largest CDCs in the nation, TMC Financing has deep relationships with banks, brokers, and economic development organizations across the Western United States. Their SBA 7(a) arm has some capacity to serve markets beyond these six states, but their strongest underwriting expertise and fastest processing are concentrated in the West Coast footprint. Buyers outside these states should contact TMC directly to confirm eligibility before pursuing an application.
What credit score does TMC Financing require?
TMC Financing requires a minimum personal credit score of 640 for SBA loan applicants. This is more flexible than many national bank SBA departments, which often look for 680 or higher. The 640 minimum reflects TMC's mission-oriented approach to lending, including their participation in minority business programs and veteran lending initiatives. Credit score is one factor among many — cash flow, business history, collateral, and the quality of the acquisition target all play important roles in the underwriting decision.
Is TMC Financing the right lender for a manufacturing acquisition with real estate?
TMC Financing is an excellent fit for manufacturing acquisitions that include owner-occupied commercial real estate. Manufacturing deals with real estate are the ideal use case for a 7(a)+504 combo structure: the 7(a) covers goodwill, inventory, and equipment, while the 504 provides a long-term fixed rate on the building or industrial facility. TMC's underwriting team has deep experience with manufacturing valuations, equipment appraisals, and the environmental considerations (Phase I/II) that are routine in manufacturing property transactions. If your deal involves a manufacturing facility in the Western US, TMC Financing should be your first call.
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