TCM CDC

What TCM CDC does

Twin Cities-Metro Certified Development Company (TCM CDC) is a Minnesota-based non-profit Certified Development Company founded in 1990 that administers the U.S. Small Business Administration's 504 loan program. As an SBA-approved intermediary, TCM pairs small business borrowers with private-sector lenders to provide long-term, fixed-rate financing for owner-occupied commercial real estate acquisitions, expansions, and capital equipment purchases across Minnesota and Western Wisconsin. The company underwrites loans internally, secures Board approval, and submits packages to the SBA Sacramento Office for final authorization.

The organization's technology stack centers on a traditional SBA 504 loan origination, underwriting, and servicing platform with no disclosed API, machine-learning capability, or digital product extensions beyond a public-facing loan calculator. Core products include the SBA 504 Loan Program as the primary offering, supplemented by expertise in SBA 7(a), SBA Express, Export Working Capital Program (EWCP), Seasonal Line of Credit, and Low-Doc SBA loans.

TCM generates revenue through transaction-based fees on closed SBA 504 loans: a 1.50% CDC Processing Fee on the net debenture amount, a 0.40% Underwriter Fee (0.375% on 10-year debentures), $1,950 in legal closing costs, plus ongoing servicing fees allocated from the effective interest rate. Go-to-market combines a direct sales force of approximately 14 loan professionals with a referral network of more than 200 partner banks and credit unions. Since inception, TCM has facilitated projects totaling in excess of $2 billion, serving small and medium-sized for-profit businesses, manufacturers, and targeted demographics including veteran-owned, minority-owned, woman-owned, rural, and energy-efficiency-focused enterprises.

Name

TCM CDC

Legal name

Twin Cities-Metro Certified Development Company

Website

https://504lending.com

Company type

Private

Founded year

1990

Operating status

Operating

Headcount range

11–50 employees

Short description

Twin Cities-Metro Certified Development Company (TCM CDC) is a Minnesota-based non-profit Certified Development Company founded in 1990 that facilitates SBA 504 loans connecting small businesses with over 200 partner lenders across Minnesota and Western Wisconsin.

Ownership category

akta.pro rank

Product category

Small Business Lending

NAICS

Mortgage and Nonmortgage Loan Brokers (522310)

SIC

Loan Brokers (6163)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industry

SBA/USDA Government-Backed Loan Intermediation (FSAEAEAI)

Keywords

• SBA 504 loans
• Small business financing
• Commercial real estate loans
• Economic development lending
• Fixed-rate business loans

Headquarters

HQ city

White Bear Lake

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel

Revenue model

1. SBA 504 Loan Fees: TCM CDC generates revenue through fees associated with SBA 504 loans, including a CDC Processing Fee of 1.50% of the net debenture amount, legal closing costs of $1,950, and an underwriter fee of 0.40% of the gross debenture amount for 20 and 25-year debentures (0.375% for 10-year). Servicing fees are also collected as part of the effective interest rate and allocated to SBA, TCM, and the loan servicing agent. A one-time Lender Participation Fee of 0.5% is paid by the participating lender on the senior mortgage amount.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels6 records

Core offering

TCM CDC is an SBA-certified Certified Development Company that originates, underwrites, and services SBA 504 loans providing long-term, fixed-rate financing for small businesses seeking to acquire or expand owner-occupied commercial real estate or purchase capital equipment. The 504 program allows up to 90% financing with as little as 10% down and terms of 10, 20, or 25 years. TCM pairs borrowers with over 200 participating private-sector lenders who provide a 50% first mortgage while TCM delivers the SBA-guaranteed 40% second mortgage.

Product overview

TCM CDC operates as a single-product-focused Certified Development Company offering the SBA 504 Loan Program as its core offering. This program provides long-term, fixed-rate financing for small businesses seeking to acquire or expand owner-occupied commercial real estate or purchase capital equipment. The company has expanded its expertise to include additional SBA loan programs (7(a), Express, EWCP, Seasonal Line of Credit, Low-Doc) to serve a broader range of small business financing needs. A supplementary loan calculator tool is provided for prospective borrowers to estimate payment scenarios.

Differentiator

Problem solved

Functional benefit

Products and services

• SBA 504 Loan Program Long-term, fixed-rate financing program providing up to 90% financing for owner-occupied commercial real estate acquisition or expansion and capital equipment purchases with useful life over 10 years, with 10, 20, or 25-year terms. Targeted at for-profit small and medium-sized businesses in Minnesota and Western Wisconsin.
• 7(a) Guaranty Loan Program Additional SBA loan program expertise offered by TCM CDC staff to assist small businesses with various financing needs beyond 504 loans, providing SBA-guaranteed funding through participating lenders.
• SBA Express Expedited SBA loan program offering faster turnaround for smaller loan amounts, provided through TCM CDC staff expertise with participating lenders.
• Export Working Capital Program (EWCP) SBA program providing working capital financing for export-related activities, offered by TCM CDC for businesses engaged in international trade.
• Seasonal Line of Credit Flexible revolving credit line for businesses with seasonal financing needs, facilitated by TCM CDC through SBA program expertise.
• Low-Doc SBA Loans Low-documentation SBA loan option for eligible borrowers requiring reduced paperwork as part of TCM CDC's broader SBA program expertise.

Quantifiable outcome

• SBA 504 program has the lowest default and loss rate of any of SBA's financing programs

Named customers7 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eleven partnerships are on record, tiered core.

• Bank of AmericacoreChannel Partner/ Reseller/ DistributorMajor national bank serving as a participating lender in the SBA 504 program, providing first-mortgage financing alongside TCM CDC's SBA-backed second mortgage for small business borrowers.
• Wells Fargo BankcoreChannel Partner/ Reseller/ DistributorMajor national bank serving as a participating lender in the SBA 504 program. Wells Fargo Trust Services also acts as the Central Servicing Agent for the SBA, wire transferring funds directly to the First Mortgage Lender upon SBA funding.
• U.S. BankcoreChannel Partner/ Reseller/ DistributorMajor national bank serving as a participating lender in the SBA 504 program.
• BMO Harris BankcoreChannel Partner/ Reseller/ DistributorMajor regional bank serving as a participating lender in the SBA 504 program.
• Old National BankcoreChannel Partner/ Reseller/ DistributorRegional bank serving as a participating lender in the SBA 504 program.
• Bell BankcoreChannel Partner/ Reseller/ DistributorRegional bank serving as a participating lender. Bell Bank partnered with TCM CDC on Solcana Fitness project in South Minneapolis.
• MidCountry BankcoreChannel Partner/ Reseller/ DistributorRegional bank serving as a participating lender. Partnered with TCM CDC on Vet Loan Advantage program funding for Walter Electrical Contractors.
• Northeast BankcoreChannel Partner/ Reseller/ DistributorRegional bank named TCM CDC's Lender of the Year, demonstrating strong partnership in SBA 504 lending.
• 21st Century BankcoreChannel Partner/ Reseller/ DistributorRegional bank that served as banking partner for Los Campeones Gym LLC, utilizing SBA 7(a), SBA Express, and SBA 504 loan programs (lenders Jon Dolphin and Jeff Vranicar).
• SBA (U.S. Small Business Administration)coreOthersTCM CDC is certified by the SBA to administer the 504 loan program. Loans are submitted to SBA Sacramento Office for final approval. SBA provides the guaranty on 504 loans and sets program parameters, fees, and interest rates.
• Over 200 Additional LenderscoreChannel Partner/ Reseller/ DistributorAdditional participating lenders include: Bremer Bank, Highland Bank, Frandsen Bank & Trust, First American Bank, First Bank & Trust, First National Bank of Elk River, Associated Bank, Citizens Bank, Commerce Bank, Eagle Community Bank, Equity Bank, Fidelity Bank, Fifth Third Bank, Firefly Credit Union, Great Southern Bank, Hiway Federal Credit Union, KleinBank, Lake Area Bank, Merchants Bank, MidWestOne Bank, Minnesota Bank & Trust, Nicolet National Bank, North American Banking Company, North Star Bank, Peoples Bank Midwest, Security Bank, Spire Federal Credit Union, Sunrise Banks, TCF National Bank, Think Bank, Thrivent Federal Credit Union, TopLine Federal Credit Union, Union Bank & Trust, United Community Bank, Unity Bank, Valley Bank, and many more regional and community banks and credit unions.

Scale indicators5 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• TMC Financing: One of the largest SBA 504 Certified Development Companies in the U.S., operating in a similar role of underwriting, closing, and servicing SBA 504 loans for small businesses, with a comparable multi-state regional focus.
• Mountain West Small Business Finance: A large SBA 504 CDC covering multiple western and mountain states, offering the same SBA 504 origination, underwriting, and servicing model with an established network of participating lenders.
• CDC Small Business Finance: A Southern California-based SBA 504 CDC with a similar non-profit economic development mission, originating and servicing 504 loans through a network of partner banks.
• Great Plains CDC: A Certified Development Company serving the Upper Midwest, providing SBA 504 financing for small business commercial real estate and equipment purchases with a comparable regional lender-network model.

Broad incumbents

• Live Oak Bank: The largest U.S. SBA 7(a) lender and active participant in SBA 504 transactions. While a depository institution rather than a non-profit CDC, it competes for the same SBA-backed small business lending customers.
• Celtic Bank: An SBA-preferred lender providing SBA 504 first-mortgage financing alongside CDCs like TCM. Operates as a participating lender partner in many TCM-sourced deals and a competitor for direct SBA lending.

Emerging players

• Kiva: A non-profit micro-lending platform focused on small business owners, including unbanked and minority-owned businesses. Addresses a similar small-business capital access mission but through crowd-funded microloans rather than SBA 504 financing.
• DreamSpring (formerly Accion): A non-profit small business lender providing capital and advisory to underserved entrepreneurs, including minority-, women-, and veteran-owned small businesses. Comparable mission overlap but different product structure (microloans vs SBA 504).

Others

• National Association of Development Companies (NADCO): The trade association representing the SBA 504 industry including TCM CDC. Not a competitor, but the institutional ecosystem partner that supports CDCs in policy advocacy, training, and program administration.
• U.S. Small Business Administration (SBA): The federal agency that certifies CDCs, guarantees the SBA 504 second-mortgage debentures, and sets program parameters. Functions as TCM's regulator, capital partner, and program administrator rather than a direct competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks7 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/twin-cities-metro-cdc

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about TCM CDC