TMC Financing Annual Small Business 2022 Outlook

TMC Financing (TMC) is pleased to announce the release of our Annual Small Business Outlook Survey. The Small Business Outlook Survey provides a window into the expectations of small business owners as they plan for the new year.

TMC Financing surveyed 350 small business owners from within our portfolio of funding recipients in California, Arizona, and Nevada to understand how the pandemic affects their strategy and what they hope to achieve in 2022. The news was generally upbeat.

Here are some of the most important highlights:

  • 55 percent of business owners surveyed expect to hire in 2022.
  • 67 percent said they do not plan to refinance during the year.
  • 85 percent of respondents said the SBA 504 loan helped their business.

The Pandemic’s Economic Impact Loses Hold as Business Owners Look to 2022

All in all, respondents report that they are putting the economic impact of the pandemic in the rearview mirror. A striking 68 percent of respondents said their revenue increased in 2021, substantially more than the 45 percent who predicted that would be the case at the outset of the year.

Looking ahead, 64 percent of respondents predict 2022 will see an increase in business. Only 7 percent, one of the lowest figures on record, expect their revenues to decline in the coming year. Twenty-nine percent say the revenue picture will likely remain about the same through 2022.

Overall, 4,206 jobs will be created with funding sourced through TMC Financing in fiscal year 2021.

SBA 504 Helped Many Business Owners Maintain Stability in 2021

TMC provided applicants with $448 million in total SBA 504 financing in 2021. Overseen by the Small Business Administration and issued by Certified Development Companies, the SBA 504 loan program focuses on helping business owners buy, construct, or refinance owner-occupied commercial real estate.

The SBA 504 loan program provides financing at below-market, fixed interest rates. Down payments as low as 10 percent ensure business owners maintain the cash flow they need to operate and reinvest in their business. There is no balloon payment, and all loans are fully amortized over 25 years.

A sweeping majority (85 percent) of SBA 504 loan holders surveyed said the program helped their business:

  • “It gave me stability.”
  • “It made my building purchase possible.”
  • “We were able to expand our geographical reach.”
  • “It made it possible to expand our business.”
  • “Low-interest rates mean more cash flow.”

While Other Federal Programs Fade, SBA 504 Is Continuing to Grow

While many federal programs aimed at alleviating the pandemic have closed their doors over the last year, the SBA 504 loan program is not among them. SBA 504 well predates the pandemic and is just one of many long-term programs the Small Business Administration uses to promote economic growth.

Interest in the SBA 504 loan program is increasing. Leaders at TMC Financing suggest those interested in the program contact them right away by connecting with a TMC Business Development Officer (BDO) in their area.

With expertise stretching back to its founding in 1981, TMC is a leader in helping business owners to navigate the SBA 504 program successfully. It has secured a total of more than $10 billion in SBA 504 commercial real estate financing for 6,000+ small businesses, resulting in more than 60,000 jobs.

As a 501(c) 4 non-profit, the organization – led by award-winning serial entrepreneur Barbara Morrison – has a mission to promote economic development and job creation for small businesses within its three-state service area.

To learn more about the results of TMC’s 2022 Small Business Outlook Survey, visit https://www.tmcfinancing.com/2022-small-business-outlook/

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