Paycheck Protection Program Loans Reach $2.22 Billion for 16,196 Maine Small Employers

Senator Collins is calling for an additional $250 billion for this essential program

Across the country, more than one million small employers have been approved for PPP loans

 

Washington, D.C.— U.S. Senator Susan Collins announced today that $2.22 billion in forgivable Paycheck Protection Program loans have been approved for 16,196 small employers in Maine.  Nearly 100 different Maine lending institutions are currently participating in the program and working around the clock to disburse this funding as quickly as possible. 

 

Due to the high demand for these loans, the Paycheck Protection Program has run out of funding.  Senator Collins is working with her colleagues to provide an additional $250 billion for this program so that more small employers in Maine and throughout the country can continue to pay their employees and survive. 

 

“The Paycheck Protection Program has run out of funding. We urgently need an additional $250 billion for this program I co-authored that provides forgivable loans so small employers can survive and give paychecks to their employees,” said Senator Collins.  “To give just one example, a community bank in Maine has nearly 300 pending applications from self-employed individuals who are requesting an average forgivable loan amount of $26,000. We need to replenish this program immediately so that these individuals can access this critical assistance.  As of this morning, $2.22 billion in forgivable Paycheck Protection Programs loans have been approved for 16,196 Maine small employers. This funding is providing crucial support to an estimated 180,000 employees. The extremely high demand for these forgivable loans underscores the urgent need for Congress to act now.”

 

The Paycheck Protection Program was created by the Keeping American Workers Paid and Employed Act, which was authored by Senator Collins along with Senators Marco Rubio (R-FL), Ben Cardin (D-MD), and Jeanne Shaheen (D-NH) to help small employers continue to keep paying their workers for an 8-week period during the COVID-19 pandemic.  These loans will be forgiven so long as employers use the money to keep their workers on payroll and to pay certain eligible business overhead expenses.

 

Their legislation was included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed the Senate 96-0 and was signed into law on March 27, 2020. 

 

Specifically, the Keeping American Workers Paid and Employed Act:

 

  • Creates the Paycheck Protection Program, a nearly $350 billion program to provide eight weeks of cash-flow assistance to small businesses through 100 percent federally guaranteed loans to employers who maintain their payroll for those eight weeks. In general, if employersuse the money to maintain their payroll and to pay certain eligible expenses, the loans would be forgiven, which would help workers to remain employed and affected small businesses and our economy to quickly snap-back after the crisis.  

 

  • Allows the Paycheck Protection Program to cover payroll costs, including employee wages and salaries, paid sick leave, plus certain rent, mortgage interest payments, and utilities expenses to provide immediate access to capital for small businesses who have been impacted by COVID-19.  Additional wages may be paid to tipped employees.

 

  • Provides $265 million for grants to offer counseling, training, and related assistance to small businesses affected by COVID-19 to SBA resource partners, including Small Business Development Centers and Women’s Business Centers and $10 million for the Minority Business Development Agency’s Minority Business Centers and Minority Chambers of Commerce. 
  • Provides $265 million for grants to offer counseling, training, and related assistance to small businesses affected by COVID-19 to SBA resource partners, including Small Business Development Centers and Women’s Business Centers and $10 million for the Minority Business Development Agency’s Minority Business Centers and Minority Chambers of Commerce.