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.
We will continue to update this page as additional information comes available.
Stimulus Package #2
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. The COVID relief portion of the legislation includes many provisions for small businesses, including:
- Enhancements to 504 Refinance Program
- Temporary Fee Reduction for the 504 Loan Program
- Extension of CARES ACT payment subsidies for 504 loan payments
- New PPP Relief Program
We’ve summarized some of the key provisions below.
Provisions of the Consolidated Appropriations Act
Paycheck Protection Program
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.
Businesses that received a First Draw PPP Loan can apply for a Second Draw PPP 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
- View an example Second Draw Borrower Application, SBA Form 2483-SD (1/21) here. This is for informational purposes only.
- 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 we will send an email invite to apply for Second Draw PPP Loans as soon as the TMC application portal is open. For questions surrounding PPP, please email or call 415.655.5480.
*All information above is subject to full pending SBA implementation guidance – required regulations, notices and revised forms.
For Help and More Information
Small Business Development Centers (SBDC) throughout California and Nevada can answer questions and help with your disaster loan application. Find a SBDC near you:
The Governors’ Offices of Business and Economic Development have also compiled helpful information for employers and employees.