EDH Storage: How SBA 504 Financing Helped a First-Time Developer Build a Self-Storage Facility in El Dorado Hills, CA
“My business partner and I have been working with TMC for the past couple of years to develop and construct our self-storage facility in El Dorado Hills, CA,” shares Jatinder Mann, the small business owner behind EDH Storage. “This was our first large commercial project and our first time obtaining SBA financing.”
“Thanks to the SBA 504 loan program, my team was able to purchase land and build a brand-new self-storage facility at 230 Green Valley Road—a project totaling $18.7 million, inclusive of land acquisition, construction, equipment, furniture, fixtures, and debt refinance on an existing land note. With a 25-year loan term and only 10% down, the SBA 504 loan gave this first-time developer the leverage to bring their ambitious project to life.”
From Raw Land to Revenue-Generating Property
When Jin and his partner set out to build a self-storage facility, they turned to Jim Azevedo at TMC Financing. Early in the process, they identified an opportunity to take advantage of the SBA 504 Green Energy Program—a strategic move that elevated their financing capacity.
By designing the facility to reduce energy consumption by at least 10%, the project met the SBA's energy public policy goals, qualifying it for enhanced SBA financing benefits, including an increased maximum debenture on the SBA portion of $5.5 million—up from the standard cap of $5 million. These funds helped cover a significant portion of the total project cost and allowed the business to move forward with sustainable design practices while preserving working capital.
“The SBA 504 Green Energy Program is a powerful tool available to business owners developing energy-efficient facilities,” explains Jim Azevedo. “Not only does it encourage sustainability, but it opens the door to increased funding that can significantly help a project. Jin and his team were incredibly thoughtful in their approach and executed with precision. TMC is proud to have been their partner.”
Personalized Support That Made the Difference
As with many construction projects, the road to completion was not without obstacles. The weather over the past two years caused multiple delays and threatened the closing timeline.
Having the support of an experienced Certified Development Company, like TMC Financing proved extremely beneficial.
“TMC’s support throughout this process was outstanding,” Jin says. “Our construction faced significant delays due to wet weather… the TMC team went above and beyond, working evenings, weekends, and early mornings to ensure we had everything we needed for a timely close.”
Jin recalls a pivotal moment when a bank-appointed title company delayed their response for over two weeks, threatening their funding timeline. “TMC swiftly pivoted to another title company that was more responsive and committed to meeting our deadlines. Thanks to those efforts, we stayed on track and secured funding on time.”
He concludes, “I just received confirmation this morning that funds have been distributed as scheduled. I want to express my sincere gratitude to your exceptional lending team. While I may not be eager to go through underwriting for another large loan anytime soon, if I do, there’s no doubt that the 504 program will be my first option!”
SBA 504 Financing Enables Small Business Dreams
From purchasing raw land to qualifying for green energy incentives, EDH Storage is a prime example of how SBA 504 financing can support entrepreneurs at every step. By leveraging both the program's standard benefits and the green energy enhancement, Jin and his partner were able to build a long-term asset in a growing community—while keeping more capital on hand to invest in their business.
Unlike traditional commercial loans, the SBA 504 loan is uniquely structured as a partnership between a conventional lender—such as a bank or credit union—and a non-profit Certified Development Company (CDC), such as TMC Financing.
In a typical SBA 504 loan, the conventional lender covers 50% or more of the total project cost, while the CDC provides up to 40% through the SBA-backed portion of the loan, which offers a fixed, below-market interest rate. The remaining 10% is contributed by the business owner, making the SBA 504 an attractive option for entrepreneurs looking to preserve cash while investing in long-term assets.
This collaborative structure allows business and storage facility owners to purchase, renovate, construct, or refinance commercial real estate with a relatively low down payment—while benefiting from favorable terms and long-term financial stability.
Is SBA 504 Financing right for your business?
Whether you're constructing a new facility, acquiring commercial property, or refinancing existing debt, the SBA 504 loan is an affordable and accessible financing option.
To learn more about how the SBA 504 program can support your business goals, contact TMC Financing today.