Washington, D.C.—U.S. Senator Susan Collins, a co-author of the Paycheck Protection Program (PPP), announced today that 4,666 Maine small employers have been approved for a total of $371,064,178 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.
“The PPP supported tens of thousands of Maine small businesses and jobs last year, which is why I strongly advocated for reopening the application process for first-time PPP borrowers and allowing the hardest hit small businesses to receive a second forgivable loan,” said Senator Collins. “The PPP is a lifeline to small businesses, such as restaurants, who have faced unprecedented challenges due to COVID-19 and need additional help to get through this winter. I encourage eligible small businesses to contact their participating financial institution to apply.”
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.