The PPP Extension Act of 2021 gives small businesses an additional two months to access the PPP
To date, Maine small employers have received nearly 43,000 forgivable PPP loans totaling $3.1 billion
Washington, D.C.—Today, the president signed into law the PPP Extension Act of 2021, legislation that was co-led by U.S. Senators Susan Collins (R-ME), Ben Cardin (D-MD), and Jeanne Shaheen (D-NH) to help small employers retain access to forgivable Paycheck Protection Program (PPP) loans. The bill was endorsed by nearly 100 organizations, including the NFIB and the U.S. Chamber of Commerce.
The PPP Extension Act of 2021 will:
· Extend the deadline for PPP applications for another two months to May 31, 2021; and
· Provide an additional 30-day period for the SBA to process applications that are still pending.
The legislation was introduced in the Senate by Senators Collins, Cardin, and Shaheen and was co-sponsored by Senators Roger Marshall (R-KS), Dan Sullivan (R-AK), Jacky Rosen (D-NV), Lisa Murkowski (R-AK), Patrick Leahy (D-VT), Ron Wyden (D-OR), Thom Tillis (R-NC), Jon Ossoff (D-GA), Shelley Moore Capito (R-WV), Jeff Merkley (D-OR), Martin Heinrich (D-NM), Rob Portman (R-OH), Amy Klobuchar (D-MN), and Joe Manchin (D-WV). The House companion bill was introduced by Representatives Nydia M. Velázquez (NY-07), Blaine Luetkemeyer (MO-03), Carolyn Bourdeaux (GA-07), and Young Kim (CA-39).
“The PPP has been an enormous success, sustaining millions of small businesses and tens of millions of American jobs,” said Senator Collins. “To date, Maine small employers have received nearly 43,000 forgivable loans to help them stay afloat and continue to pay their employees, and our legislation will allow more small businesses to access this lifeline. I am pleased that Congress acted before the PPP expired in order to prevent an interruption in the program and give small business owners this crucial two-month extension. I encourage eligible small businesses that have yet to apply for a first or second draw PPP loan to contact their financial institution as soon as possible.”
Since the PPP began last year, nearly 43,000 forgivable loans totaling $3.1 billion have been approved for Maine small businesses. In 2020 alone, more than 28,000 Maine small businesses and self-employed individuals received nearly $2.3 billion in forgivable loans, helping to support more than 250,000 jobs throughout the state. In the December COVID-19 relief law, Senator Collins secured $284.5 billion to reopen the PPP for first-time applicants and allow the hardest-hit small businesses to receive a second PPP loan. Since the program reopened in January, there have been 14,440 forgivable PPP loans approved in Maine totaling $855,578,093.
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.