TMC is your partner and we are here to help.

We recognize the immense challenges facing small businesses as a result of the Coronavirus crisis. It is our goal to be as helpful and as supportive as possible to get through this difficult time. On this page, you’ll find details on the following:

    • The CARES Act
      • Debt forgiveness
      • Paycheck Protection Program (PPP) Loan
      • Economic Injury Disaster Loans (EIDL) aka SBA Disaster Loan
    • Emergency Grants / Loans
    • Tips for Businesses Impacted by COVID-19

The CARES Act

The CARES Act, passed 3/27/20, is a $2 trillion coronavirus relief/economic stimulus bill that provides debt forgiveness and offers two loan programs for small businesses, the Paycheck Protection Program Loan and the Economic Injury Disaster Loan (EIDL), also known as an SBA Disaster Loan. You can apply for both, however, not for the same use of loan proceeds.

On 4/24/20, an additional $470 billion stimulus bill was signed. This will add $310 billion to the PPP Program, $60 billion to the EIDL Program, and $100 billion to hospitals.

Debt Forgiveness for Current Borrowers

The SBA is to make the loan payments for six months on 504 loans in regular servicing and not on deferment beginning with the first payment due after the enactment (i.e., April 1).

Those 504 loans on deferment on the date of enactment of the CARES Act will receive the loan payments for six months after the deferment ends.

SBA payments will be made NO LATER THAN 30 days after the date on which the first payment is due. The first payment is due April 1, thus SBA has until April 30 to make the payments on behalf of 504 borrowers.

For 504 loans, this debt forgiveness applies ONLY to the SBA second mortgage, it does not apply to the first mortgage. You do not need to request these payments – they will be made automatically.

Paycheck Protection Program Loan

CARES expands the SBA 7(a) program with the PPP Loan – specifically designed to enable businesses to retain their employees during this time of crisis and uncertainty. With initial PPP funds exhausted in two weeks, the SBA opened a second round of funding on 4/23/20.

Hours before the second round of funding was due to close on July 3rd, President Trump signed the “PPP Extension Act” which consists of the same exact language that passed the Senate on June 30th. Small businesses now have until August 8th to apply for a PPP loan.

The U.S. Treasury Department’s website is a great source for comprehensive and up-to-date information.

  • Apply directly to an SBA 7a lender: TMC is not accepting applications at this time. Please reach out to the following lenders who may be able to help: Fountainhead Commercial, Liberty SBF, Square, PayPal, Intuit Quickbooks and Bluevine.
  • Eligible Businesses – defined as those with fewer than 500 employees, including 501(c)(3)s, that were operational on, or before Feb. 15, 2020
  • Loan amount – 2.5 times your average monthly payroll over the past 12 months, up to maximum of $10 million.
  • Other termsrate 1% fixed, 5 year term, no fees, no prepayment penalty, no personal guaranty, no collateral
  • Use of loan proceeds – payroll, health benefits, rent, mortgage payments (limited to interest no principal) and utilities.  Please note that up to 40% of the loan can be used for mortgage, rent payment and utilities. This loan is designed to help you retain your employees and keep a roof over your head.
  • Payment deferment – all loans will have payments deferred for at least the first 6 months
  • Loan forgiveness –  the amount used for eligible uses listed above in an 24-week period during the “covered period” (February 15 – December 31) will be forgiven.  The government will write a check to the lender for that amount.
  • In the event not all of the original loan was used for the purposes above, the remainder will be turned into a 5-year term loan with the same 1% interest rate.
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PPP Fact Sheet

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PPP Application

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PPP Interim Final Rule

Economic Injury Disaster Loans (EIDL)

aka SBA Disaster Loan: Must apply through the SBA NOT through TMC

The SBA’s Economic Injury Disaster Loan program provides small businesses with low interest working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 

  • Loan amount – up to $2 million
  • Use of proceeds – may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
  • Who is eligible – businesses that meet SBA size standards and non profits with less than 500 employees adversely impacted by COVID-19
  • Interest rate – 3.75% fixed for businesses, 2.75% fixed for nonprofits
  • Term – up to 30 years
  • Collateral/personal guaranty – for loan amounts above $25,000

How to Apply

The Economic Injury Disaster Loan application continues to evolve rapidly. The SBA website currently shows a simplified EIDL application process with a streamlined online application. Please note, their website has experienced periods of time when it is not available.

The SBA estimates the applicant can receive funds in as little as two months. You can request a modification (increase) to the loan, if the situation changes.  For example, if your business needs to stay closed longer than anticipated, you can then apply for an increase to the loan.

Emergency Economic Injury Grants of $10,000

  • SBA will advance a $10,000 Grant, if requested, within 3 days of applying for EIDL
  • You are eligible for an advance of up to $10,000, whether or not you are approved for an EIDL
  • This is a grant and does not need to be repaid under any circumstances

Help and Resources

EIDL Applicants can call: 1-877-641-8202 to reach a disaster loan officer

Other clues / tips about the process:
  • If your credit has been checked, that means your application is being processed
  • After credit check, the advance will be deposited into your bank account
  • If your credit was pulled but no grant/advance received, that means there was a banking issue. Call the above number to correct.
  • After credit check and advance direct deposit received, you should receive an email giving you access to the SBA portal (where you acknowledge/approve the EIDL amount that SBA is offering)
  • SBA sends formal approval, and loan docs via Docusign
  • 24 hours later, EIDL funds deposited into the bank acct.
  • If grant was received but no email from SBA to access portal, call the above number, the rep will give you an update and re send the email with SBA portal info

The SBA has created some documents that we found to be very helpful. Please review the resources below to give you a better understanding of the CARES Act and the EIDL.

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Disaster Loan Training Presentation

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Disaster Loan Fact Sheet

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Small Business Majority Lender Roundtable: New PPP options in CA

For help and more Information
SBA’s Customer Service Center: (800) 659-2955  | 

Small Business Development Centers (SBDC) throughout California and Nevada can answer questions and help with your disaster loan application. Find a SBDC near you:

californiasbdc.org
www.nevadasbdc.org

The Governors’ Offices of Business and Economic Development have also compiled helpful information for employers and employees.

California Businesses: business.ca.gov/coronavirus – 2019
Nevada Businesses: business.nv.gov/

TMC is unable to accept PPP applications. If you are still in need of financing, we've compiled a list of grants and loans available to small business adversely impacted by covid-19.View list
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