Senator Collins, the co-author of the PPP, successfully pushed to allow the hardest-hit small businesses to apply for a second forgivable loan
To date, the PPP helped support more than 28,000 Maine small businesses and 250,000 jobs throughout the state
Washington, D.C.—Following a successful effort led by U.S. Senator Susan Collins, the Paycheck Protection Program (PPP) will fully reopen tomorrow, Tuesday, January 19, with qualifying hard-hit small businesses eligible to receive a second forgivable loan. Senator Collins, the co-author of the PPP, secured an additional $284.45 billion in the COVID-19 relief package to extend and expand the Paycheck Protection Program.
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 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.
“Small businesses and their employees have had to cope with unprecedented challenges caused by COVID-19,” said Senator Collins. “The hospitality industry in particular has been severely affected, and restaurant owners have told me of having to lay off valued staff as cold weather made outdoor dining impractical and restrictions made it impossible for them to serve their usual number of customers inside.”
“The PPP I co-authored has been a lifeline, but many small businesses need more help to stay afloat this winter and continue to pay their workers,” Senator Collins continued. “I strongly advocated for providing small businesses with additional relief that they need to survive, and I am delighted that, following a sustained bipartisan effort, Congress passed my legislation to extend the PPP. I encourage eligible small businesses to contact their participating financial institution to apply.”
Since the program began accepting applications in April 2020, more than 28,000 Maine small businesses and self-employed individuals have received nearly $2.3 billion in forgivable loans, helping to support more than 250,000 jobs throughout the state.
Additional guidance from the Small Business Administration can be found here:
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
- Interim Final Rule on Second Draw PPP Loans.