TMC Financing provides SBA 504 loan for industrial vending machine manufacturer
LOS ANGELES, CA, June 29, 2015 (Newswire.com) - TMC Financing today announced the owner of AutoCrib, Inc. financed the purchase of a 58,000-square-foot manufacturing facility and warehouse at 2882 Dow Avenue in Tustin, California, with a 20-year, fixed-rate Small Business Administration 504 loan. The total project cost is $7.75 million.
“This is the second building we’ve purchased using SBA financing,” AutoCrib Founder and CEO Stephen Pixley said. “Owning is really the way to go because you get to depreciate the building in a tax-advantaged way.”
AutoCrib designs, manufactures and writes software for industrial vending machines that allow manufacturing companies to cost-effectively control and track inventory of thousands of indirect inventory items, from tools to parts. The company has provided more than 20,000 automated inventory control systems to manufacturers worldwide.
“We were operating out of three separate buildings, so whatever you needed was always someplace else,” Pixley said. “We’re adding more lines and bought a company, so we needed more space. We’re adding staff so we needed to get everything under one roof for efficiencies.”
“AutoCrib was a pleasure to do business with,” Jennifer Davis, TMC senior vice president, said. “The new location allows them to continue to grow the company and fix their occupancy costs in an environment where rents continue to rise.”
Pixley was referred to TMC Financing by his commercial lender, Pacific Premier Bank. “Whenever you go through the government, you expect it to be a bureaucracy and a pain,” Pixley said. “But this went smoothly. Jennifer was knowledgeable and informative. It was a good experience.”
About SBA 504 real estate loans
The U.S. Small Business Administration 504 loan program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost (TPC), which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. A typical 504 loan project requires a down payment of only 10 percent of the TPC from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company (CDC). By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides long-term stability to both businesses and communities. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting tmcfinancing.com.
About TMC Financing
Founded in 1981, TMC Financing is the largest provider of SBA 504 commercial real estate financing in Northern California and Nevada. TMC consistently ranks among the top CDCs nationwide, funding projects worth more than $8 billion across California and Nevada. More than 4,700 businesses have benefited from this financing, resulting in the creation of an estimated 46,000 jobs. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.