Covid-19 Resource Guide

Cares Act Paycheck Protection Program

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. Please find information regarding the Paycheck Protection Program (PPP) and 2021 Consolidated Appropriations Act.

Stimulus Package #2: 2021 Consolidated Appropriations Act

The 2021 Consolidated Appropriations Act, a $900 billion COVID relief package combined with $1.4 trillion government-wide funding, was passed by Congress and signed into law on December 27th. The COVID relief portion of the legislation includes many provisions for small businesses, including a new PPP Relief Package.

The SBA portal for Second Draw PPP program is now open. TMC Financing will be processing Second Draw PPP loans of up to $500,000 to all qualified borrowers who have an existing PPP Loan with TMC.

(Current TMC PPP borrowers will receive an email invite to the second draw PPP application portal)

Paycheck Protection Program Loan (PPP 2nd Draw – now open)

Businesses that received a First Draw PPP Loan can apply for a Second DrawPPP Loan if they experienced a drop of at least 25% in 2020 revenue over the same time period in 2019
PPP borrowers must have used all of their First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed
The full amount of the First Draw PPP Loan must have been spent on permitted authorized costs
The new PPP Program is authorized by SBA through March 31st, 2021
The maximum loan amount for a Second Draw PPP Loan is equal to 2 1/2 months of the borrower’s average monthly payroll
For restaurants and businesses in the hospitality industry, the maximum loan amount can be as much as 3-1/2 months of average monthly payroll
If a Second Draw PPP borrower used its 2019 figures to determine its First Draw PPP Loan amount and uses its 2019 figures to determine Second Draw PPP loan amount, TMC will not need any additional documentation to substantiate payroll costs
For Second Draw PPP Loans less than $150,000 PPP borrowers must submit the revenue reductions documentation EITHER at application or when it applies for PPP Loan forgiveness. For Second Draw PPP Loans greater than $150,000, PPP borrowers must submit documentation at the time of application
Click here to view an example Second Draw Borrower Application, SBA Form 2483-SD (1/21). This is for informational purposes only, TMC PPP borrowers will receive an email invite when our application portal is open later this week.
Also note:
- Expenses paid for with PPP loan proceeds, are deductible from federal taxes
- A simplified forgiveness application for loans under $150,000 is expected to be released soon
EIDL: The $1,000 – $10,000 grant received by EIDL borrowers will no longer be deducted from PPP loan forgiveness.

Please review our PPP Loan Forgiveness FAQs to learn more about the forgiveness application process and note that if you are a TMC PPP borrower we will send an email invite to apply for Second Draw PPP Loans as soon as the TMC application portal is open. Thank you.

Paycheck Protection Program Loan (PPP 1st Draw – now closed)

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.