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. Please find information regarding the Paycheck Protection Program (PPP).
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.
The PPP loan was available to business with fewer than 500 employees, including 501(c)(3)s, that were operational on, or before Feb. 15, 2020. Loan terms are as follows:
Loan amount – 2.5 times average monthly payroll over the past 12 months, up to maximum of $10 million.
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 payments deferred for 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 is now ready to accept PPP debt forgiveness applications. To get the process started, please email and include the legal name of the borrowing entity, contact information and if possible, the PPP SBA loan number.
A TMC employee on our debt forgiveness team will email a link to our debt forgiveness application system provided by a software vendor named “Ventures”. The system will guide you through the application form and also provide instructions on how to upload supporting documents.
Once the application is completed, the TMC debt forgiveness team is notified and they will begin working on submitting the forgiveness application to SBA.
Please note that PPP legislation allows for TMC to take up to 60 days to process a forgiveness application, but we expect to be able to process much faster than that. In addition, the SBA has 90 days to review and decision the forgiveness application after it is submitted by TMC.
