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.
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.
How to Apply: TMC is unable to accept application but you can check with any other 7a lender. Please reach out to your bank of account and if they are unable to help, try: Fountainhead Commercial, Liberty SBF, Square, PayPal, BlueVine and Intuit Quickbooks.
Eligible Businesses – 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 terms – rate 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. 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 – Dec. 31,2020) 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.
*TMC, along with all PPP lenders, is still waiting on clear guidance on PPP Loan Forgiveness. Until that information is released, we cannot process any loan forgiveness applications.