SAN FRANCISCO--(BUSINESS WIRE)--TMC Financing (www.tmcfinancing.com), a leading Certified Development Company (CDC) providing U.S. Small Business Administration (SBA) 504 commercial real estate financing in California and Nevada, today announced the results of its 4th Annual Small Business Portfolio Survey, which included job and sales growth projections from approximately 800 clients for the upcoming year. Clients surveyed are small businesses located throughout California and Southern Nevada. According to the results, approximately 42 percent of TMC’s small business clients expect to add staff in 2013, a 39 percent increase from 2010. TMC’s portfolio includes approximately 1,900 small businesses.
“We initiated the TMC Annual Portfolio Survey in 2010, when the small business sector was struggling through the depths of the Great Recession,” explained Barbara Morrison, TMC’s President and CEO. “We’ve been anxiously awaiting the results of the 2013 survey, because we had strong anecdotal evidence last year that our clients were making the adjustments necessary to regain their footing amid the ongoing turbulence.”
“Indeed, this year’s results reflected our beliefs,” said Morrison. “In addition to the large increase in businesses expecting to add jobs, there’s better news on the job loss side of the equation, too. Comparisons over the four-year period show a 46 percent decrease in the number of companies expecting to reduce staff.”
“The survey findings also support the slowly changing access to capital for our nation’s small businesses,” said Morrison. “Our clients reported a 37% increase in being approved for any type of credit for their business over the four-year period from 2010 to 2013. At the same time our results show a steady decline in the number of businesses being denied credit for business purposes.”
According to survey respondents, when asked about employee levels in 2013, 42 percent said they expect to add staff in 2013; 3 percent expect to reduce staff in 2013; the remaining 55 percent expect staff levels to remain the same. Regarding sales volume predictions, 54 percent expect sales volume to increase; 5 percent expect sales to decrease; 41 percent expect sales to remain the same. The number of companies expecting sales volume to decrease went down by 65 percent over the 4-year period. Of the respondents who applied for non-SBA business credit in the past 12 months at the time of the survey, 33 percent said they were approved in the 2013 survey; 5 percent said they were declined. This represents a 37 percent increase in the rate of non-SBA credit approvals from 2010, and a 31 percent decrease in the rate of declined applications.
Looking beneath the numbers, the stories and trends TMC Financing witnessed in 2012 include:
- A San Francisco Bay Area veterinary hospital utilizing SBA 504 funds to finance a major construction project that is transforming pet healthcare with cutting –edge technology that will improve pet surgery to enhance quality of life;
- A leading sleeping bag manufacturer in Southern California that purchased a facility with SBA 504 financing and is now bringing jobs back from China to reduce costs and enforce better quality control;
- A cross-section of family-owned businesses that are leveraging the SBA 504 program to create jobs, satisfy clients, and build wealth for future generations;
- A major market adjustment in the hotel industry where a combination of larger SBA loans and a shift to smaller, boutique hotel construction has made the SBA 504 program the ideal loan product at a critical time; and
- Dozens of small businesses taking advantage of the temporary SBA 504 refinance program (now expired, pending legislation for revival) as a rare lifeline to refinance underwater commercial properties at reasonable rates and to obtain essential working capital to survive and grow.
“At TMC we believe that small businesses are today’s heroes, and we are thrilled to see evidence that the entrepreneurs we serve – the ones willing to take a risk and persevere through good times and bad times -- are projecting gob growth and optimism for the future,” said Morrison. “Our clients are driving the economy, creating jobs, and charting new pathways to achieve long-term success.”
During the past 31 years, TMC has provided approximately $7.2 billion in financing for more than 4,200 businesses throughout California and Nevada. This financing has resulted in the creation of over 30,000 new jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade, and is the number one SBA 504 Lender in Northern California and Las Vegas. For more information, visit http://www.tmcfinancing.com.