Washington, D.C.—U.S. Senator Susan Collins, a co-author of the Paycheck Protection Program (PPP), announced today that 8,542 Maine small employers have been approved for a total of $601,296,036 in forgivable PPP loans since the PPP reopened last month, according to the latest data from the U.S. Small Business Administration.
Senator Collins secured $284.5 billion for PPP in the December COVID-19 relief law. Financial institutions across Maine and the country are currently accepting and processing PPP applications for eligible small businesses seeking a forgivable loan for the first time and for those hardest hit small businesses who may receive a second forgivable loan. Under a new Biden Administration policy, beginning on Wednesday, February 24, there will be a two-week period during which only businesses with fewer than 20 employees may apply for a PPP loan.
“The latest PPP numbers showing that nearly 1,000 additional Maine small businesses have received nearly $50 million in forgivable loans in the span of just one week is good news for jobs and our economy,” said Senator Collins. “It is also encouraging that the data show that the smallest employers continue to be the biggest beneficiaries of the PPP. Eligible small business owners should contact their financial institution about applying so that their businesses can survive the pandemic and continue to pay their employees.”
Under the December law, small businesses that employ 300 or fewer people and that experienced a 25 percent or greater gross revenue loss between comparable periods in 2019 and 2020 due to COVID-19 are eligible to apply for a second forgivable PPP loan. In addition, forgivable overhead expenses are expanded to include supplier costs and investments in facility modifications and personal protective equipment needed to operate safely. In recognition of the severe impact that COVID-19 mitigation measures have had on the hospitality sector, in particular, the formula used to calculate the maximum forgivable loan amounts for second draw loans is enhanced for restaurants and hotels to equal 3.5x average monthly payroll. Further, small business owners that did not receive a PPP loan in the first round are also eligible to apply.
In 2020, more than 28,000 Maine small businesses and self-employed individuals received nearly $2.3 billion in forgivable PPP loans, helping to support more than 250,000 jobs throughout the state.