Item 1.01 Entry into a Material Definitive Agreement.

On August 24, 2012, Western Financial Capital Corporation ("WFCC") and PMC Investment Corporation ("PMIC"), Small Business Investment Companies ("SBICs") and wholly-owned subsidiaries of PMC Commercial Trust each issued $2 million of SBIC debentures. The debentures mature in 10 years and have semi-annual interest only payments until maturity. The debentures will be priced in September 2012 in accordance with Small Business Administration ("SBA") rules and procedures. In addition, up-front fees of 3.425% were paid to the SBA. These debentures were drawn down from the original $15 million commitment from the SBA received in June 2011. After this issuance of $4 million, there is $6 million remaining which may be issued from this commitment.

Funds of WFCC and PMIC are restricted and may only be used to fund the obligations of WFCC and PMIC, respectively. We are currently marketing to eligible small businesses to originate SBIC loans.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above related to the debenture is incorporated in this Item 2.03 by reference.

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