In this episode of Adding Value, Shy Assar sits down with Jennifer Davis, Senior Vice President at TMC Financing, to discuss the current state of SBA 504 loans and how they are transforming the Inland Empire industrial real estate market. With over $1.7 billion in small business financing experience, Jennifer explains why more business owners are transitioning from tenants to landlords by securing 10% down financing. We dive into the "45-day rule" for contingencies, how to get approvals when traditional banks say no, and why the SBA 504 is the ultimate hedge against inflation for warehouse and logistics users in Southern California.
In this episode, you’ll learn: How the SBA 504 program provides stability with 25-year fixed rates. The reality of current lending timelines and the "45-day contingency" standard. Strategies for refinancing existing debt to pull out working capital. Why "Pre-Approval" is the most critical step for any industrial owner-user.
Connect with Jennifer Davis: LinkedIn: https://www.linkedin.com/in/jenniferdavistmc/
Company: https://www.tmcfinancing.com/
#AddingValueShow #CRE #BrokerTalk #IndustrialRealEstate #InlandEmpire #SBA504 #CommercialRealEstate #RealEstatePodcast #Warehousing #Logistics #SmallBusinessFinancing
Timestamps
[00:00] Intro: Closing the gap between leasing and owning in the IE.
[01:06] Current state of the SBA 504 market and deal velocity.
[01:47] Why banks are becoming more conservative and turning to the SBA.
[03:20] Trends in industrial assets: MEPs, HVAC, and yard space.
[05:08] The history of TMC Financing and the role of a loan packager.
[07:34] Mechanics of an SBA loan: Moving from tenant to owner.
[09:44] Determining if you are a "good fit" for SBA 504 financing.
[10:45] The 25-year fixed rate as an inflation hedge.
[13:01] Why you should start with an SBA partner before your bank.
[16:02] Market headwinds: SBA staffing changes and policy updates.
[20:38] The 45-day contingency: Timelines for formal approval.
[21:33] What is included in a comprehensive financial package?
[24:42] 10% down payment requirements and special purpose properties.
[26:42] Refinancing opportunities: Tapping into equity for working capital.
[30:23] New incentives: Priority for Veterans and manufacturing limits.
[33:36] Personal guarantees and underwriting for business growth.
[35:02] Final Advice: The importance of pre-approval and your "Professional Team."