WASHINGTON, DC – Earlier this week, President Joe Biden enacted the P3 Extension Act of 2021 to help small employers retain access to Paycheck Protection Program (P3) forgivable loans.
The PPP Extension Law of 2021 will extend the deadline for PPP applications by an additional two months until May 31 and provide an additional 30 days for the SBA to process applications that are still pending.
“The PPP has been a huge success, supporting millions of small businesses and tens of millions of American jobs,” said Senator Susan Collins (R-Maine). “To date, small employers in Maine have received nearly 43,000 forgivable loans to help them stay afloat and continue paying their employees, and our legislation will allow more small businesses to access this lifeline. rescue. I’m glad Congress acted before the P3 expired to avoid a disruption to the program and to give small business owners this crucial two-month extension. I encourage qualifying small businesses that have not yet applied for a first or second PPP loan to contact their financial institution as soon as possible. “
Since the launch of the PPP last year, nearly 43,000 forgivable loans totaling $ 3.1 billion have been approved for small businesses in Maine.
In 2020 alone, more than 28,000 small businesses and self-employed people in Maine received nearly $ 2.3 billion in forgivable loans, helping to support more than 250,000 jobs statewide.
In December’s COVID-19 relief bill, Senator Collins secured $ 284.5 billion to reopen the PPP for new applicants and allow the most affected small businesses to receive a second PPP loan.
Since the program reopened in January, 14,440 repayable PPP loans have been approved in Maine for a total of $ 855,578,093.
Under the December law, small businesses that employ 300 people or less and have experienced a gross income loss of 25% or more between comparable periods in 2019 and 2020 due to COVID-19 are eligible to apply for a second PPP loan with discount.
Additionally, the forgivable overhead is expanded to include supplier costs and investments in facility modifications and personal protective equipment necessary to operate safely. In view of the severe impact that COVID-19 mitigation measures have had on the hospitality sector, in particular, the formula used to calculate maximum forgivable loan amounts for second-draw loans is improved for restaurants and hotels to reach 3.5 times the average monthly payroll. In addition, small business owners who did not receive a PPP loan in the first round are also eligible.