Company Name: TMC Financing
Company Website: http://www.tmcfinancing.com
Art Tile is a community business specializing in the wholesale of tile and stone products. After 30 years of serving the Bay Area, Art Tile was able to acquire a building in Oakland and start a new vertical to their business by utilizing Small Business Administration (SBA) Loan Programs.
Patrick Feely, the owner of Art Tile, comes from 11 generations in the natural stone industry. Patrick has always had a passion for not only stone, but also the business surrounding the stone. Patrick knew he could not sustain a long-term, successful business while leasing.
“We hear lots of stories of businesses that are doing quite well and unfortunately their lease rate doubles or even triples in a couple of years,” explains Patrick. “To own your own building, particularly in the bay area, is fundamental to allowing one to think long-term. A small business needs to own their building. Thankfully, with the way the SBA loan is structured and with the great service that TMC offers we were able to accomplish that.”
TMC connected with Patrick in 2014 and helped him buy the Oakland building he was leasing for Art Tile. By utilizing the SBA 504 Program, Patrick was able to purchase a property with only a 15% down payment.
The acquired property is a two-story, 6,100 SF mixed-use commercial unit with three residential units on the second floor. By purchasing the property, Patrick was able to stabilize his occupancy costs and even increase his monthly cash flow by renting out the residential units.
With the success of Art Tile, Patrick was eager to start a new vertical focusing on natural stone counter tops. However, he didn’t have the capital to make it happen.“Starting a new business can be expensive so I reached out to TMC to see how they could help,” states Patrick. “They got me into the Community Advantage Program and provided a loan to help with the startup costs for that business.”
“While the 504 Loan is perfect for established businesses ready to purchase real estate for their business, the Community Advantage Program is better served for businesses not quite there yet,” according to Barbara Morrison, TMC President. “The Community Advantage Loan is SBA backed and can be used towards equipment, working capital, or other business expenses.”
TMC provided Patrick with a second loan, a Community Advantage Loan, that was used to finance the build-out of a new space in addition to machinery purchases.
About TMC Financing:
Founded in 1981, TMC Financing is the largest provider of SBA 504 commercial real estate financing in Northern California.TMC consistently ranks among the top certified development companies nationwide, and has funded projects worth more than $9 billion across California and Nevada. Nearly 5,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs.