As of this morning, SBA has resumed accepting applications for the Paycheck Protection Program
Washington, D.C.—U.S. Senator Susan Collins, a member of the Small Business Coronavirus Task Force, announced today that Treasury has released a new rule that will provide greater flexibility to seasonal businesses applying for forgivable PPP loans. Senator Collins, the co-author of the Paycheck Protection Program (PPP), has been pushing for greater flexibility for small, seasonal businesses.
“Maine hosts tens of millions of visitors each year, and many of them arrive during the busy summer season. This new rule will give Maine seasonal small businesses more flexibility in calculating their maximum loan size when they apply for the program. I pressed Treasury to help ensure that Maine’s summer seasonal employers, who have already seen bookings cancelled as a result of the COVID-19 pandemic, are able to select the payroll window that best represents their business needs.”
“I am also delighted that SBA has resumed accepting PPP applications today,” Senator Collins continued. “I urge Maine small employers and self-employed Mainers, such as fishermen, who have filed an application for a forgivable loan but have not yet been approved, to follow up with their lenders immediately. For those who have not yet applied, I urge them to do so as soon as possible.”
Previously, the maximum size of a seasonal employer’s Paycheck Protection Program loan was calculated by using the applicant’s average monthly payroll costs during the 12-week period beginning February 15, 2019, or at the election of the borrower, March 1, 2019, and ending June 30, 2019. Many small employers in Maine, however, have busy seasons that occur during the summer. The new interim final rule released by Treasury today will give seasonal employers the option to use any consecutive 12-week period between May 1, 2019, and September 15, 2019, to determine their maximum loan amount when they apply.
To date, nearly 17,000 small employers in Maine have been approved for $2.24 billion in forgivable loans, providing paychecks for approximately 180,000 employees. The average loan amount is $134,000, consistent with small businesses averaging 12 employees. National figures also confirm the success of the program with an average loan amount of $206,000, which on average should support an estimated 18 employees per small business.
This morning, SBA resumed accepting PPP applications now that legislation Senator Collins negotiated to increase funding for PPP by $320 billion has been signed into law.